The times. [volume] (Richmond, Va.) 1890-1903, 1897-03-10
THE LEXOW COMMITTEE
MIKES IT'S REPORT ON 1HE INyLs-
TIGIIION or COMRINdfTONs.
An Amendment to the Constitution OF TIE
United states Suggested as Means To
Carry out the Committees Ideas.

committoc met this morning and the
members affixed their signatures TO the
report of the investigating committee.
The report is an unusually lenthy one
embracing thirty-oght typewri;ton pages.
The testimony taken before the commit
tee the decision of other investigating
committees and Of the United States SUI
preme Court are commented upon AT
length. and much attention Is devoted
TO the operation Of factors agreements.
In brief the report says:... %,
WHAT \ TRUST is.
Trust agreements 10 longer form the
basis OF. or are they a constituent part
OF the aggIegations of capital Whlch dte
commonly looked upon as trusts. III
discussing this question or trusts 'ne
committee finds that u ls uhH.c'ssa- ,
that absolute monopoly cXisis IN oIneI
that the operations Of trust may ne
secured. In discussing trusts iht con
mite divides combinations anu capi,"
into three classes. FIRST ar" tol ivi"
tons which operate under PUBIC lidu-
chses: second. legal corporations Which
are protected by patents and TRACE maj No.
and third those that depend whoiy upon
the use Of capital and where mOhopoi'a
exist, not naturally or by legal perml5-
sion but by reason Of the control OIL COM
peting companies and the product Ia e.
der that the greatest net results may DC
shown.
The committee docs not quite agree that
the trusts and monopo.ies comllilhen u
ara a natural result OF the progressive
evolution of the times. and while II does
not recognize all combinations OF caIlldI
as trusts i'm the proper sense, H. docs
recognize that unless the evils coiilpi"li'N
of against mammoth combinations OF
wealth attempting 10 control the supply
and price of products are remedlcu lhtl
il will be but a snort time before "a con-
tinuance of the operation OF Such cViii"lll
atoms will tend TO stile competition Hh"
place the regulation of supply ana pIl.1
Of product as well as The business OF inc
country I'm the hands OF few
CONGRATULATIONS.
Touching the question of over-capltdH-
zatiCn of these modern combinations ga
wealth. the committee finds That inns
is one of the serious evils which lead
10 the complaint against trusts lor h,l
being content 10 earn iair return on.
the actual capital invested. lhey Sech
TO wiring increased profits out OF the
consumer by reason II an over-capitaii-
zatiOn. The committee condemns the
practice Of domestic capital operating IN
this State under the incorporation Oh
another state and especially New Jersey.
The committee succeeded ID securing
comics of the factors agreements IN use
bv all OF the different corporations m
vestigatod. and finds that their use
clinchos the system Of monopoly when
has Cvcrsprcad the country. ana rchdeis
such combinations of wealth permanent
by making competition Impossible. At
is obvious that. ass the fcdcrd couIt3
have placed so narrow a construction
upon the limit Of their authority no re-
lief touching the operation OF factor
agreements can be expected from that
quarter except through the ana OF
constitutional amendment
CONSTITUTIONAL AMENDMENT.
1t seems to us that the operation or
trusts and especially factor agreements
can be satisfactorily reached only by the
exercise of a power Of general Juilsdlc-
ton throughout the United states. ana
that any attempt 10 prevent the evil by
local legislation will prove abOrtiVe, or
at least insufficient. a review OF the
court decision regarding factor agree
ments leads the committee 10 the oplH-
ion that the constitutional freedom OF
contract may not be interfcred with, ana
that they can be attacked only when IL
| IS shown that they attack the rights
constitutional liberties, and the privileges
Of the people.
laws be amended so as to place lml-
tatiOn upon the stock Of corporations
especially as regards foreign corporations.
operating in this State. and that fore en-
cOrpOratiOus be brought under the JuriS-
dictiCn Of the laws of this state, which
are provided for the protection OF credit
ors and shareholders OF domestic corpora
lions.
The committee recommends and is now
preparing Il bill carrying out these suE-
gestions and will make provision for the
right of a citizen 10 begin civil action
and secure an injunction against any
trust" operating in this State i'm viola
ton Of these recommendations Win the
final view Of having the license OF "a
foreign corporation to do business ~ TINS
State revoked If IL is found that such Tor
eign corporation is not complying WIN an
provisions of New York State laws. go
This is "a method so drastic that u VIII
be further considered by the committee
before a bin is finally submitted An I'M
pOrtaut difficulty seems 10 be thai OF
securing the testimony necessary 10 a
judicial ascertainmcnt OF violation OF
any provisions Of New York State laws
bv n so-callcd trust or foreisn coipoi-
alton.
The committee is preparing q Dill Whl'h
will empower the Attorney General 10 ih-
vestfcate "A trust on the complaint OF any
citizen of an alleged violation or law.
which bill will empower the AtloIl'N
General 10 examine witnesses ulu'I
suboocnas TO be issued ON the Attorney
Generals cx parte Application by % Jus
.fro of the Supreme Court the cNainl-
nation OF witnesses boy the Attorney ''h-
rral is 10 be conducted i'm the presence
Of a court Of Justice and the trsliIlo,,ig
l.. TO bc filed in the Attorney N'hcltl
om.o This law will Civ. immunity from
Duniehmeut to witnesses ltNtll l"-l va
enbnoenas issued by the Attorney F'u
er,i The committee is not yet faushcl-
that IL can frame "a law RESTRICTING ihe
| onororOn of factors agreements "Alrl
! will lo constitutional.