New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-10
Rigid Provisions Aimed
at All Interlocking
DirectOrateS.
PROPOSED TO END
PATENT MONOPOLY
Here Is an Authoritative Analysis
of the Fundamental Pro-
visions of the Bills.
IRON The Tribune Bureau


Washington IAN. "a drastic pro
gramme Of administration anti-trls,
legislation. at variance with reports Oh
mild corrective measures, has osen
.honed bv a subcommittee OF the
House judiciary Committee. Inc
Tribune is able to present an authorl-
itative analysis of the Fundamental pro-
visions of the bills completed by the
House subcommittee and TO state mat
these bills follow the general lines sug-
gested by the President IN ms recsh,
conferences with House leaders.
The bills. now awaiting the perusa'
! of the President. are subject 10 re-
vision bv him. but the House trainers
of measures supplementary 10 the
sherman law have proceeded on me
theory that the cure for the trust evil
is to follow a course Of rigorous treat
ment. The cardh al provisions OF the
bills as drawn are given below.
One bill relates to the definition OF
monopoly and trusts and will provide
that any restraint Of trade snail De
deemed an unreasonable restraint OF
trade.
This is to meet the "rule Of reason"
written into the Sherman law by the
Supreme Court. Members Of the House
sub committee, evidently with the ap-
proval Of the administration, hold that
| while bia business is all right so long
as il docs not interfere with competi-
ton. there can be no such thing as
reasonable" restraint Of trade.
This bill deals largely with narrow
ing the "debatable ground" which
President Wilson recently declared sur
rounds the Sherman law.
No Interlocking Direetorates.
4 second bill relates to interlocking
dircctorates. Its provisions are more
farreaching than has been anticipated
even by those who have taken II for
granted that the Democratic admins
tration would forbid such directorates.
This measure. as written by the sub
committee, will apply to banks, rail-
roads and industrial corporations en-
gagged in interstate commerce.
Il is provided that no bank director
shall be a director OF railroad en-
caaed in interstate commerce, nor shall
the director Of a railroad corporation
occupy a like position in bank. d.
reetors in banks and railroads are to
be forbidden also to become directors
in any industrial corporation in any
manner which will lead to the sitting
Of competition.
The bill will go still further by pro-
vidina that a director Of one industrial
CORPORATION shall not be a director in
competing corporation.
A member Of the House committee is
authority for the statement that no
bill yet introduced TO prohibit inter
locking directorates was sufficiently
broad to meet the views of the trainers
of the proposed legislation. The sub
committee found that the idea OF
|
troduced measures on this subject was
10 treat mainly Of railroads, manu-
facturers of steel and coal mines. The
Stanley bill, proposed as pattern for
the committee, touched only these sub
jects, but Chairman Clayton and his
colleagues on the subcommittee have
! drafted a bill which takes in banks,
railroads and industrial corporations.
| large and small.
: The riqht Of the federal government
70 supervise tho operation Of banks and
railroads is held to be particularly
sacred.
To Keep Out Bankers.
| "A great bank, like that OF J. r.
Morgan & Co.." the House trust doctors
argue. "has no right 10 dictate the
policy OF common carriers. for when
banker like j. p. Morgan walks into a
meeting of railroad directors he be-
comes the board of directors"
This was substantially the argument
used when the trainers Of the antitrust
bills looked about for a measure SUM-
ciently drastic TO insure a dissolution
of interlocking directorates.
The provision forbidding interlocking
directorates between industrial corpo-
rations doing an interstate business
will apply TO all corporations which
do or may compete" 1t is contended
that many industrial concerns which
should be competitive really are not be-
cause OF a joint control which exists.
There must be an absolute enforcement
Of such corporations under the admin
istration programme.
Another bill framed by the House
subcommittee DEGREES the divorcemen,
Of railroads from manufacturing con-