Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-03-10
THE TRUST REPORT.
MIR. lExow's COMMITTEE or The
EVIL or CONFINES.
GENERAL LAWS NECESSARY,
Danger i'm state Legislation OF the
violation of Constitutional Rights.
The Matter of Factors Agreements.
Rccomme


Committee met this morning and the
members affixed their signatures TO the
report OF the Trust Investigating Com
mttee. The report is an unusually
lengthy one, embracing thirty-eight type
written pages. The testimony taken be-
fore the committee, the decision of other
investigating committees. and Of the
United States Supreme Court are COM
mented uoon at length. and much atten-
ton is devoted to the operation Of FAC
tors agreements. In brief, the report
says:
Trust agreements no longer form the
basis OF or are they constituent part oil
the aggregations of capital which are com
monty looked upon now as trusts. In DIS
GUESSING this question Of trusts the COM
mttee finds that IL is unnecessary that
an absolute monopoly should exist in or
der that the operations Of trust may DC
secured. In discussing trusts the commit
tee divides combinations and capital INTO
three classes. First are the corporations
which operate under public francnisesi
second, legal corporations. which are pro-
tected by patents and trademarks, ana
third, those that depend wholly upon inc
use Of capital, and where monopohes eN-
ist. not naturally or by legal pernhssioh'
Tut by reason of the contro! of competing
companies. and the product. in order that
the greatest net results may be shown.
The committee does not quite agree that
the trusts and monopolies complained OF
are a natural result of the progressive
evolution OF the times. and while 1t does
not recognize all combinations OF capitai
as trusts I'm the proper sense, II does
recognize that unless the evils complalheu
OF against mammoth combinations oil
wealth attempting 10 control the supply
and price Of products, II Will be but a
short time before "A continuance Of the
operation of such combinations will tend
10 stifle competition and place the regula-
ton Of supply and price of product as
well as the business of the country, in the
hands of a few.
Touching the question of over-capi-
talization Of these modern combinations
OF wealth. the committee finds that this
is one of the serious evils which lead to
the complaint against trusts for not be-
ing content to earn fair return on
the actual capital invested. They seek
TO wiring increased profits out of the
consumers by reason Of an over-capi-
talization
The committee condemns the practice
of domestic capital operating In this
State under the Incorporation of another
State, and especially New Jersey.
The committee succeeded in securing
copies OF the factors agreements IN use
by all Of the different corporations in
vestigated. and finds that their use
clinches the system of monopoly which
has overspread the country, and renders
such combinations of wealth permanent,
by making competition impossible. 1t is
obvious that, as the Federal courts have
placed so narrow a construction upon
the limit of their authority, no relief
touching the operation of factors agree
ments can be expected from that quarter,
except through the aid of a constitutional
amendment.
GENERAL JURISDICTION NEEDED.
1T seems to us that the operation
of trusts, and especially factors agree
ments. can be satisfactorily reached
only by the exercise OF power OF gene
raj jurisdiction throughout the United
States, and that any attempt to pre-
vent the evil by local legislation will
prove abortive. or, at least, insufficient
a review of the courts decision re-
garding factors agreements leads the
committee TO the opinion that the con-
stitutional freedom of contract may not
be interfered with, and that they can
they attack the rights, constitutional
liberties, or privileges Of the people
The committee recommends that the
laws be amended so as TO place a
limitation upon the stock of corpora
tons, especially as regards foreign cor
porations operating in this State, and
that foreign corporations be brought UNI
der the Jurisdiction of the laws Of this
State, which are provided for the pro-
lection of creditors and shareholders OF
domestic corporations. The committee
recommends, and is now preparing,
bill carrying out these suggestions, and
will make provision for the right of a
citizen to begin a civil action and Sc
cure an injunction against any trust
operating in this State IN violation or
these recommendations. with the final
view of having the license Of foreign
corporation 10 do business in this State
revoked, If il is found that such foreign
corporation is not complying with all
provisions of the New York State laws.
This is a method so drastic that it viii
be further considered by the committee
before the bill is finally submitted
IAN important difficulty seems TO be
that OF securing the testimony necessary
10 a judicial asceTtainment OF violation
of any provisions of New York State
laws by a so-called trust or foreign cor
poration. The committee is preparing
bin. which will empower the Attorney
General TO investigate trust on the
complaint OF any citizen Of an alleged
violation OF law; which will empower the
Attorney General to examine witnesses,
under subpoenaes 10 be issued on the At
torney-G Generals ex-parte application. by
a Justice of the Supreme Court. The
examination OF witnesses by the Attor-
new General is to be conducted in the
rresence Of a court Of justice. and the
testimony is to be filed in the Attorney
Generals Office This law Will give i'm
munity from punishment to witnesses
testifying on subpoenaes issued by the
Attorney General. The committee is not
vet satisfied that II can frame law re-
stricting the operation OF factors agree