The Savannah morning news., 1901-11-10
DILL ON The TRUSTS.
SPEAKS BEFORE MERCHANTS
CLUB OF CHICAGO.
OF THEIR USES AND ABUSES
DANGERS BOTH TO COMBINATIONS
AND THE PUBLIC.

snys, Has Caused Legislation to
Foster the Combination of Capital.
He Cites New Jersey, Which Has,
clivities, Practically Evaded the
Necessity of Collecting State
Taxes.
Chicago. Nov. AT the banquet of
the Merchants Club of this city, held
this evening. the chief speaker was
James B. Dill of New York, who spoke
on Trusts, Their Uses and Abuses"
Mr.. Dill divided into two classes the
dangers of the trust movement First.
dangers to the combinations. and sec
ondly, dangers from the combinations
to the public.
Speaking of the dangers to the cor
porations, he said:
"A menace to the combination and
to the people is found in the competi-
tive strife among states for revenue
from corporations. Legislative induce
ments by way of private and public
statutes to corporate organizations are
the order of the day. Protection for
domestic corporationsi war upon for
eign corporations is the legislative
theory of many states.
Just so long as it is possible for a
corporate organization in one state to
do that business in another state which
is forbidden to it's own corporation.
just so long will we find different
states offering inducements to capital
laws. To-day we find states giving
express permission to their corpora
tions to do in other states what such
corporations are expressly prohibited
from doing at home.
HThe present tendency in some states
in state legislation respecting indus
trial corporations is to encourage and
increase state revenue rather than to-
wards soundness and integrity of legis-
lation.
For years the state of New Jersey
stood pre- eminent among the charter
granting states, until the revenue de-
rived from corporations she practical
ly abolished the necessity for state
taxes. contributed large sums for
| schools, tor good roads and for matters
of public use and utility. AT the begin
ming of this month the state of New
Jersey had in its treasury over $4,000, =
| 600 as surplus.
"In 1901 the state of New York, al
though it had for years waged war
upon New Jerseys system of incor-
poration, gave way to the contrast be-
tween the state of its treasury and that
of New Jersey. New York out-Jersey-
ed New Jersey in so-caled liberality to
trusts. 1t amended its corporation act
upon the theory that the greatest lib
erality would produce the greatest
COnnaaffrttF o,.l
opened its doors, offering its induce
ments to corporations, and North
Carolina followed New York and Con-
necticut. Delaware and West Virginia
had already every provision which
could be suggested to make these
states successful charter granting
states, and to increase their revenues,
and finally South Dakota comes for
ward with a proposition that 1t will
grant to corporation everything that
it will ask, and for a consideration so
minute as to be scarcely worth men,
tioning.
This tendency is not toward wis
dom of legislation. but toward absence
OF restriction. to the granting of pow
ers rather than to the maintenance of
proper control"
Mr. Dill suggested that the Roosevelt
act of 1900 in New York was now a
features of q national corporation act,
which might be acceptable inc Wash
ington. He added that the President,
then Governor of New York fathered
the proposed New York act of 1900
that il was prepared by a commission
selected under his direction, and that
the act although II did not pass tie
Legislature of New York, contains
many elements which are approved
both by students of economies and by
practical corporation managers.
In conclusion the speaker said:
'I do not wish to be misunderstood
as to the character of the industrial
movement of to-day. It is of the high
est order and is progressing in the
right direction. 1t has been productive
of great good to this country. 1t is a
direct contributing factor TO the COM
mercial supremacy of the United
States. Theorists social reformers and
students of economics have argued
against the character of the industrial
movement Of to-day. They overlook
the fact that while there are dangerous
tendencies. as has been frankly admit
ted they are ills which are natural to
mankind. in any position, not to be
cured by hasty legislation, not to be
overcome by vituperation and abuse,
but rather to be minimized, and per-
haps ultimately eliminated by wise
and conservative examination, and de-
cision upon the question as a whole
derived from the experience of the