The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1897-03-10
THE TRUST PROBLEM.
The LesoW Investigating Committee Has
Prepared Its Report on Combines.
TRUSTS SCIENTIFICALLY TREATED
Report Distinguishes Between Those
Harmful ana Rcvcrsc-D Distinction
AIS" aiade Between Those which
May be ConstisusionnlIyI Killed ana
Those Which Arc safe.

Albany, N. Y. March 9-The Lcxow
committee met this morning, and the
/ members affixed their signatures to the
| report Of the, trust investigating COM
mlttee The report Is an unusually
| lengthy one embracing thirty-eight type
| written pages. The testimony taken be-
| lore the committee, the decision of other
! United States Supreme Court, are COM
mented upon at length, and much atten-
ton Is devoted to the operation Of fac
tots agreements In brief, the report
says: '5t7' 'Gs'1 -, -
! COMBINES CLASSIFIED.
trust agreements no longer form the
OASIS OF nor are they a constituent part
OIL the a aggregation Of capital which are
commonly looked upon now IS trusts. In
discussing this question: OF trusts, the
committee finds that 1t is unnecessary
| mat absolute monopoly exist In order
cured,
IN discussing trusts, the committee d.
Nldes combinations and capital into
! three classes.
FIRST, are corporations which operate
| under public franchises.
second. Legal corporations which are
pro ected by patents and trademarks.
| ihlfd. Ihose that depend wholly upon
the use or capital and where monopolles
| exist, not naturally or by legal perm;s-
sion, put by reason OF the control of
| competing companies and the product.
In order that the greatest net results
| may be shown.
| me committee does not quite agree
| mat the trusts and monopolies COM
| plalned or are Il natural result Of the
| progressive evolution of The times, and
while 1t does not recognize all combIna
IONS OF capital as trusts in the proper
sense. 1t does recognize that unless the
| evils complained Of against mammoth
combinations of wealth attempting to
| control the supply and price OF products.
that 1t Will be but short time before n
continuance Of the operation or such
combinations will tend 10 st!fe competi-
tlon ana place the regulation Of supply
| and price of product as well as business
| or the country In the hands OF a few.
touching the question Of over-capital-
lzation Of these modern combinations of
Wealch, the committee finds that this Is
one or the serious evils which lead to
the complaint against trusts for not
being content to earn n fair return on
the actual capital invested. They seek
! to wiring increased profits out Of the
consumers by reason of er-capltaliza-
ton The committee condemns the
practice Of domestic capital operating III
| this state under the Incorporation OF
another State, and especially New Jer-
Sey.
! FACTORS AGREEMENTS (
me committee succeeded In securing
comics OF the factors agreements in use
! by all Of the different corpora tons in
vested. and finds that their use clinchcs
| the system Of monopoly which has over
| spread the country and renders such
comDlnations or wealth permanent. by
making competition impossible.
It Is obvious that as Federal courts
have placed so narrow 4 construction
upon the limit Of their authority, no re-
lief touching the operation of factors
agreements can be expected from that
quarter except through the aid OF
constitutional amendment 1t seems to
us that the operation Of trusts, and
especially factors agreements, can be
| satisfactorily reached only by the exer-
else Of power of general jurisdiction
| throughout the United States, and that
| any attempt to prevent the evil by local
| legislation will prove abortive or at least
INSULT Gent
| y review Of the courts decision re-
garding factors agreement leads the
| committee to the opinion that the con-
| Stituional freedom Of contract may not
! be interfered with and that they can
| be attacked only when It Is shown that
they attack the rights. constitutional
liberties and the privileges of the people.
TO LIMIT CAPITALIZATION.
laws be amended so as to place iimita-
ton upon the stock Of corporations,
! especially as regards foreign corpora
lions operating IN this State, and that
! foreign corporations be brought under
| the jurisdiction Of the laws OF this State
| which are provided for the protection OF
| creditors and shareholders OF domestic
| corporations.
The committe recommends and Is now
preparing bill carrying out these sug-
gestions and will make provision for the
right Of citizen TO bes,:n I civil action
end secure an injunction against any
trust operating in this state in Violation
! or these recommendations with the final
view OF having the license OF Il foreign
| corporation to do buslnaSs in this State
revoked, IL 1t Is found that such foreign
| corporation Is not complying with all
provisions Of New York State laws
TINS Is method SO drastic that 1t will
re further considered by the committee
before bill is finally sl,nmittcI
an important difficulty seems to be
that Of securing the testimony necessary
to adjudtcate ascerta,nlncnt of viola.
ton Of any provisions OF New uYr)
State laws by q So-callcd trust or for
! eiGn corporation.
| a PROPOSED REMEDY.
| The committee Is preparing a bill
which will empower the Attorney Cen
erai to investigate q trust on the com
plant Of any citizen Of an alleged vio-
lation Of law which bill empower the At
torney General to examine witnesses I'M
| der subphoenas to be issued on the At