The Washington times., 1914-07-21
THE TRUST LEGISLATION


ciary and Interstate Commerce hav
substantially completed their worl
on the twin measures, one for fur
ther regulation of trusts, the othe
for control of railroad capitalization
These measures constitute the back
bone of the Administrators pro
gram for control of great combina
tions, in industry and in transpor
tation. The President is determined
to have them passed at the presen
session, and, from the standpoint Of
both business and politics, he is un
questionably right.
AS matter of politics, the party
in power wants it's program enacted
before the Congressional election
because it is reasonably certain OF
the needed votes now; after election
it might not be. Enacted now, the
measures will have two years trial
before the Presidential election; and
the Administration is anxious to 60
before the country in 1916 on the
record of fair test of an approx
mately completed program.
On the business side, it seems
reasonable to assume that, so long
as this Administration is pledged to
all effort in behalf of such legisla-
tion, it is better to have the period
of uncertainty ended as soon as pos
sible, and to give business a chance
to adjust itself to the new condi-
ticns.
So far as concerns the substance
of the two measures, there will he
wide differences of opinion as to de-
tails; but in the 1912 campaign all
three political parties were aligned
in favor of legislation along these
general lines. 1t is, therefore, very
reasonable to assume that sucn an
outcome, at some time not far away,
is inevitable. Being inevitable, the
sooner it is over the better.
There are some provisions in
these measures that represent the
obvious legislative answer to some
recent experiences in the business
world. Interlocking directorates
have served the purpose of central
izing control to a degree that has
aroused hostility of public opinion.
There have been too many evidences
that when the same group of gentle
men are required, under the inter-
locking system, to serve on many
boards, they do mighty little real
directing. There would be a good
many more names in the directories
of directors, under the proposed law,
than there are now; there would not
be very many men credited with
half dozen, a score, or even more, of
places on important directories. II
is not very apparent that any real
public interest would suffer from
having enough directors in the di-
recting business to insure that they
would have time to work at their
jobs.
Scandals concerning the purchase
of supplies, etc, for big corpora
tions have been too numerous to
mention. The Illinois Central,
very few years ago, had nauseous
scandal dragged through the courts,
involving very high officials,
charged with buying supplies for
the railroad. at unreasonable prices,
from concerns in which these off
cials were financially interested.
This has been duplicated in many
other instances. The proposed law
aims to stop such practices, under
impressive penalties. Certainly no
body will defend these forms of
graft. They should be ended.
again, there is a section which,
had it been law when the Billiard
company was making couple of
millions of profit for insiders out of
a juggle in New Haven securities,
would have warned those thrifty
persons; and, if they neglected the
warning, would have reasonably in
sured their punishment. 1t will
hardly be presumed that anybody is
going to object to marrying bust
ness" by safeguarding investors
against such practices. The Frisco
collapse likewise was in the minds
of the men who framed this pro-
vision.
Probably it will be October be-
fore this program is digested and
enacted; a good many changes will
yet be made. Experience will show
but it is line of legisla-
ton that is certain to be placed on
the books, and that would have
saved much loss and scandal if it
had been there before this time.
Miners Issue Appeal.
COLUMBUS, Ohio, July 2l.-An appeaI