Evening journal., 1914-01-28
ASKS
ABOUT ANTI
TRUST LAWS
Companies Are Concerned
About Possible Effects Un-
der Proposed Bills
PRESIDENT GIVES
REASSURING ADVICE
Special to the EvENlNc JOURNAL

Special to THE EVENING JOURNAL.
WASHINGTON, ID. c., Jan. 2S.-In-
quiriea are reaching Delawa-e's sena-
tors and Representative in Congress
as to the probable effect Of The Pres
idents antitrust program on the va
lrious industries of Wilmington and
some Of the points made in the let
ters have raised interesting questions
as to the extent to which capitalists
must restrict their activities 70 a
single corporation.
One of the questions raised by a
Wilmington corporation was whether
it would be regarded as holding
company within the meaning OF the
proposed law forbidding the existence
of such holding companies. The con-
lcern I'm question is the subsidiary of
"a corporation organized IN an outside
State. but obtained a Delaware char
ter at the time the "Seven Sisters
bills were passed by the New Jersey
Legislature.
II was the intention of the corpora
tion ultimately to transact most of IT'S
business from Delaware. but the
Question Is now raised as TO whether
lt will not be leglslated out OF busi-
mess so far as its Delaware activities
Iare concerned.
Another interesting question that
was raised was whether stat banks
mot becoming members of the new
Regional Reserve Association, might
not have representatives on the boards
OF the national banks which will be-
part OF the system. and thus enjo,
IS general advantages
stll another question was whether
1 Wilmington corporations, desiring {,
consolidate, might not get definite per
, mission from the proposed Interstat,
4 Trade Commission II they could show
there was no danger of monopoly
being created.
These questions were brought 10 IN,
ii attention of the members of the Judi
4 ciary Committees of the House an,
Senate and also TO the attention o
4 the President himself and the definite
I. explanation that was made by thes
high officials may be herewith given
!, With reference TO holding com
4 panies. the President explained tina
(. there was not tle slightest intenuo
10 reach any corporations which ol
/, ganize subsidiary companies I'm othe
n States to facilitate their business
The purpose of the act, the prcsiden
said. Is 10 reach monopOlies Wher
- holding companies have been forme
TO dodge the present law. Il Is ti
, intention to legislate such companie
n out OF business. The act rs said to ar
= ply particularly 10 railroads whic
4 organize holding companies to TAX
+ charge OF their coal interests Whcr
4 corporation is simply doing bus
ness IN another State under anothe
II charter. and there IS no evidence q
a monopoly, or evidence OF one compan
4 selling IT'S product 10 another con
trolled by the same interests. ther
will be no prosecutions
n A special law Is TO be passed
IL prevent directors OF State bank
II from serving in any capacity in ma
lO tional banks which enter the reserv
Is system. The only way a State ban
Ic can get the benefit of the advantae
supposed to be conferred In the ne'
system Is to enter that system direct
ly. Efforts 10 beat the devil abou
the bush" will be severely penalized.
= The final. and probably most I'M
J portant question, is answered by tn
president and the chairmen Of u
=. two committees with the explana
~ , ton that the Interstate Trade Con
= mission will have no administrator
U functions The commission ma
y give Wilmington corporations advic
u but not immunity. If a merger n
t. ceivcs the o. X. of the commission
the attorney general may disregaI
10 II and begin suit If the commits
et sion makes recommendations to n
lg Confined on Page Two).