The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-18
WANTS TRUST BILL TO
END STOCK WATERING
Senator Robinson Offers an
Amendment, Which Gets
Serious Consideration.
PAID UP CAPITAL REQUIRED
Senate subcommittee Hopes to
Complete Work on Bill
in Few Days.

WARRINGTON, April 1.-THE Senate
Committee on Interstate Commerce Is
seriously considering an amendment to
the pending Administration antitrust bill
that will put an end to stock watering.
Senator Robinson OF Arkansas is the
author Of the amendment. He has been
working with a subcommittee. at the
head Of which Is Chairman Newlands.
and they have given special attention to
the feature designed to@end overcapitali-
cation.
The bill as drawn does not attempt to
disturb outstanding issues Of securities
but IL does contain a provision regulating
futures issues by corporations already In
existence. It proprovides that future Is
sues must be paid In full In cash or in
property. and that the property at fair
market value must equal or exceed the par
value Of the stock.
The following is a tentative draft Of the
new section drawn by Senator Robinson
TO be inserted in the bill IL a majority OF
the committee can be brought TO ap-
prove II:
mo corporation. Joint stock company
or Other form of business organization
having capital or shares OF capital stock
hereafter organized shall engage In COM
merce among the States or with foreign
nations unless its capital or capital stock
Is paid In full In cash or in property. or
contracted in writing to be SO paid at a
fixed time by responsible subscribers.
IF any such corporation. joint stock
company or other form OF business or
ganixation having capital or capital stock
proposes TO accept property in payment OF
any subscription to Its stock. said property
must equal or exceed In Its market value
the par value Of the stock paid for in
property-the market value of said prop
erty to be ascertained and fixed by the
commission.
mo corporation. joint stock com
pany or other form OF business organi-
zation having capital or capital stock.
heretofore organized. shall engage in COM
merce among the States or with foreign
nations II II hereafter issues or authorizes
TO be issued any certificates OF shares or
other evidences of capital stock without
requiring same to be paid for in full In
cash or In property or contracted In writ
ing to be paid for at a fixed ;ime by
responsible subscribers and without re-
quiring. II said certificates OF shares or
other evidences Of capital stock be aid
for In property that the fair market value
of said property equals or exceeds the par
value OF the stock paid for In property.
the market value OF said property TO re
ascertaincd and fixed by the commission"
The subcommittee OF eight Of the Sem
ate Committee on Interstate Commerce
worked diligently to-day to try to complete
the bill. They expect to have a measure
ready for the full committee rext week,
The stock watering feature has given the
Subcommittee much trouble.
In addition to the sections creating an
Interstate trade commission with power
to initiate investigations OF corporations
II Is known that the Senate bill Will carry
provisions intended 10 regulate interlock-
ing directors, holding companies and to
prevent discrimination in prices designed
to destroy competition.