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Show FRAME FOUR BILLS 10 GURBTRUSTS" MEASURE APPROVED EY WILSON HAS NO ESCAPE LOOPHOLES. LOOP-HOLES. TO BECOME LAWS VEP.Y SOON Penalty for Restraint of Commerce, Unfair Business and Interlocking Directorates Ample Provisions Made for Trade Commission, Washington, Jan. 23. The administration's adminis-tration's trust bills, embodying the program laid down by the president in his recnt message, have been presented present-ed to congress. The bills have received the approval of Mr. Wilson and the Democratic leaders of both houses of congress. With little modification they will be enacted into law. Their purposes are: 1. Definition of unlawful monopoly monop-oly or restraints of trade. 2. Prohibition of uniair trade practice. 3. Creation of an Interstate trade commission. 4. Regulation of corporation dl-dectorates dl-dectorates and prohibition of interlocking in-terlocking directorates. Unlawful Monopoly Defined. Unlawful monopoly Is defined as B,ny combination or agreement between be-tween corporations, firms, or persons designed for the following purposes: 1. To create or carry out restrictions re-strictions in trade or to acquire a monopoly in any interstate trade, business, or commerce. 2. To limit or reduce the production pro-duction or increase the price of merchandise or of any commodity. 3. To prevent competition in manufacturing, making, transports lng, selling, or purchasing of merchandise, mer-chandise, produce, or any commodity. com-modity. 4. To make any agreement, en-ten en-ten into any arrangement, or arrive ar-rive at any understanding by which they, directly or indirectly, undertake to prevent a free and unrestricted competition among themselves or among any purchasers pur-chasers or consumers in the sale, production, or transportation of any product, article, or commodity. commod-ity. The penalty for violation of the law Is fixed at not more than $5,000 or imprisonment im-prisonment for one year or both, i Guilt is made personal through a section that whenever a corporation shall be guilty of the violation of the law the offense shall be deemed to cover the individual directors, officers, and agents of such corporation, as authorizing, ordering, or doing the prohibited acts, and they shall be punished pun-ished as prescribed above. A paragraph prohibiting holding companies is to be added to this measure. meas-ure. . Covers Unfair Trade Practices. The bill forbidding unfair trade practices declares that to discriminate In price, between different purchasers of commodities, with the purpose or Intent to injure or destroy a competitor, competi-tor, either of the purchaser or of the seller, shall be deemed an attempt to monopolize interstate commerce. It is specifically declared that the law is not intended to prevent discrimination dis-crimination in price between purchasers purchas-ers of commodities "on account of difference in the grade, quality, or quantity of the commodity sold, or that makes only due allowance for difference in the cost of transportation." transporta-tion." Further, it 'is prescribed that nothing noth-ing contained in the act shall prevent persons from selecting their own customers, cus-tomers, "but ths provision shall not authorize the owner or operator of any mine engaged in selling its product prod-uct in Interstate or foreign commerce to refuse arbitrarily to sell the same to a responsible person, firm, or corporation, cor-poration, who applies to purchase." An attempt at monopoly also is declared de-clared to exist for any person to make a sale of goods, wares, or merchandise or fix a price charged therefor, or discount dis-count from or rebate upon such price, on the condition or understanding that the purchaser thereof shall not deal In the goods, wares, or merchandise merchan-dise of a competitor or competitors of the seller. Deals With Damage Suits. A judgment against any defendant In a Bult brought under the anti-trust law the bill provides shall constitute as against such defendant conclusive evidence of the same facts and be conclusive as to the same Issues of law in favor of any other party In any other proceeding brought under and Involving the provisions of the law. For the benefit of parties injured In their business or property, by any person per-son or corporation found guilty of violating vio-lating the law the statute of limitations limita-tions applicable to such cases shall be suspended. Injunctive relief is accorded against threatened loss or damage by a violation viola-tion of the act under the same conditions condi-tions and principles that injunctive relief re-lief against threatened conduct whicS will cause loss or damage is granted by courts of equity. It is required that a proper bond lhall be executed against damages for in Injunction improvidently granted, md it must be shown that the danger Df irreparable loss or damage is immediate. im-mediate. Hits Interlocking Directorates. Concerning directorates, the bill on that subject, which is to become ef fective two years from date of ap proval of the act, provides: "No person engaged as an Individ ual or as a member of a partnership or as a director or other officer of s corporation in the business of selling railroad cars or locourotives, or rail road rails or structural steel, or min ing or selling coal, or conducting r bank or trust company, shall act as a director or other officer or employe o! any railroad or other public service corporation which conducts an interstate inter-state business. "No person shall at the same time be a director or other officer or employe em-ploye in two or more federal reservt banks, national banks, or banking as sociations, or other banks or trust companies which are members of any reserve bank; and a private banker and a person who is a director in any state bank or trust company not operating oper-ating under the provisions of the recent re-cent currency law shall not be eligible to serve as a director in any bank or banking association or trust company operating under the provisions of the law." Violation of these sections is made punishable by a fine of $100 a day, or by imprisonment not exceeding one year, or both. If any two or more corporations have common director or directors, the fact shall be conclusive evidence that there exists a real competition between such corporation a-nd such elimination of competition shall be construed as a restraint of Interstate trade and be treated accordingly. The trade commission bill provides for commission of five members, with the commissioner of corporations as chairman, and transfers all the existing exist-ing powers of the bureau of corporations corpora-tions to the commission. The principal and most important duty the commission besides conducting conduct-ing investigations will be to aid the courts when requested In the formation forma-tion of decrees of dissolution. With this in view, the bill empowers empow-ers he court to refer any part of pending pend-ing litigation to the' commission, Including In-cluding the proposed decree, for Information Infor-mation and advice. Much Criticism for Bills. The trust bills as framed will be the subject of sharp criticism on the part of progressives of all parties who claim they do not go far enough. It will be declared that the definition of monopoly remains inadequate that the prohibition of unfair trade practice does not cover this evil in our economic econ-omic life that interlocking utock control con-trol is not covered and that the powers pow-ers of the proposed trade commission are insufficient. It is interesting to note that the proposal to place the burden of proof upon a combination believed to be violating vio-lating the law has been omitted. No attempt is made to prevent or destroy monopoly based on patents. The greatest great-est difficulty exerienced in the effective effect-ive enforcement of the law has been found to be in the unwillingness of the courts to impose jail penalty. It remains optional under th proposed measures wiht the court to fine or Imprison. Trade Board May Disappoint. In connection with the trade commission com-mission President Wilson declared in his message that the country "demands "de-mands such a commission only as an indispensable instrument of information informa-tion and publicity as a clearing house for the facts by which both the public pub-lic mind and the managers of great business undertakings should be guided." The bill prescribes that the commission commis-sion acts are to constitute a "public record" but the body is authorized to make public the information "in such form and to such extent as may be necessary" or "by direction of the attorney general." It is apparent that the public mind cannot be guided unless it has the facts, and then It will not get unless the commission or the attorney general gen-eral deems it politic. In other words, public hearings will not be held as they are held by the interstate commerce commission. Settlement of Differences. The most important feature of the bill Is that which legalizes the policy of the administration of terminating an unlawful condition by agreement between the combination attacked and the attorney general. This feature is comprehended under a section which requires the commis slon, upon the request of the attorney general or any corporation affected, to Investigate whether a combination Is violating the law. In case the commission com-mission Bhould find the violation to exist It must report to the attorney general a statement of the objectionable objection-able acts and transactions and the readjustments necessary for the offending of-fending combination to conform to the law. These conclusions are to be "ad vlsory to the attorney general in terminating ter-minating by agreement with the corporation cor-poration affected or by suing the Bald unlawful conduct or condition." In other words, whatever may be the agreement made by the attorney general with the combination investigated, investi-gated, it will give the reorganized combination legal standing, so long as it conforms to the term of the agree ment. Thus It Is proposed to place by law a tremendous power in the hands of the attorney general. This power has been assumed to attorneys general, and particularly so by Mr. McRey-nolds; McRey-nolds; Will Give Courts Advice. In a statement accompanying th bill made by Congressman Clayton, chairman of the house judiciary com mlttee, it is said that the "principal and most important duty of the commission, com-mission, befides conducting investigations, investiga-tions, will be to aid the courts, wheD requested, in the formation o! decree of dissolution, |