The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-03
CAPITAL Is PLEASED
BY MORGAN ACTION
But Democrats Say 1t Won't
Change Plans for New
Antitrust Laws.
WILSON ATTACK AVOIDED
President Expected to Ask for
Act Against InterlOck-
Ing Directorates.

WARRINGTON, Jan. 2.-Oemocratic lead
ers In Washington say that the reorgan-
isation of the house OF J. p. Morgan q
Co.. effected through the retirement by
members Of that Arm from the director
ates OF other corporations, will not alter
plans under way TO pass supplemental
antitrust legislation at the coming SEES
sion Of Congress
Administration officials claim to have
had knowledge in advance that the house
Of Morgan intended to retire from active
participation In number of railway and
industrial corporations.
Mr.. gan's.announcement has made a
favorable impression on the authorities.
who predict that the interlocking arrange
ment thus broken up by the most extern
slve banking house In the country
and the action OF corporations In making
peace with the Department of Justice will
tend to stimulate business and encourage
tradesmen who have been inclined to be
pessimistic about the business outlook.
when Congress reassembles message
VIII be forwarded TO Congress by the
| President recommending the enactment OF
a law prohibiting interlocking directorates
III all Interstate commerce corporations.
May Ask sherman Law Change.
" IL believed that the President will
also ask that the Sherman law be ampli-
ned by provision making guilt personal
instead OF corporate, as the act Is at
present interpreted In the courts. This
means that the law will provide punish
ment by Imprisonment for officers of cor
porations that indulge in practices In
violation OF the law.
Just how far beyond this the Presi,
dent VIII go in recommending anti-tru.,
| LEGISLATION is knntgn me ~ 10 hal vaA
that the message on the subject will be
a temperate document
The modern system OF interlocking di.
rectorates and so-calied voting trusts"
were condemned in the report made By
the Pujo money trust committee TO the
House OF Representatives II was sug-
gested that such practices should be
brought within the purview of the law.
Nhen the Glass-Owen currency bin
was taken up In the Democratic caucus
In April. 1919, an effort was made to
force the adoption of a resolution prohlb-
lung person who served as "A director
IN one bank to act in n like capacity in
any other financial institution. This was a
few months after the publication of the
money trust report.
In the debate in caucus such conserya-
tive leaders as Mr.. Underwood agreed
with the proponents of the proposal that
interlocking directorates should be pro.
hihited but they insisted that If the prin.
ciple was adopted In law the inhibition
should apply to all corporations and not
! to banks alone.
Committee At Work On BiIl.
on motion of Mr.. Underwood a resolu.
ton was adopted instructing the House
Committee on the Judiciary to report N,
general bill on the subject. The com.
mIttee Is now at work on such a measure
and Is expected to make "a report earlier
In February
The money trust committees report
credited Morgan a Co. with having
twenty-three directors in thirteen banks
ana trust companies. four directors in
TOUR insurance companies, twenty direc-
tors IN twelve transportation systems
Twelve directors in seven producing and
trading companies and four directors in
three public utility corporations-in all
sixty three directors in thirty-nine cor
poratlons having total resources of slo,-
0S6.OO0.0O0.
Speaking OF the control Of railroads by
the House of Morgan the COMMITTEES
said:
such affiliations with competing en-.
terprises are not wholesome, they do not
promote competition but. on the contrary
tend as a cover TO secret Arrangements and
undertakings In restriction OF competition
through the agency of the banking house
thus situated"
EncOurnRinH. Says senator.
The evils that have been complained
OF by the public are being recosuiz.d 4"
said Senator Hoke Smith, Democrat, "aud
this is a clear evidence that readjustments
can be made peaceably and that litigation
will not he required to enforce recognition
OF the law i regard this as one of the
| favorable signs of the times and to be en-
couraging for the general business inter-