The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-04-24
LEGISLATION AND TRUSTS.

Forty rich business men from New York
are making an extended tour of Texas to
learn the opportunities of investment and
the nature of its corporation laws. TAX
ing this visit as a text, the Baltimore
Sun of Monday has the clearest, the
wisest and sanest editorial on the subject
of Legislation and Trusts that has APP
peared since the organization of the
trusts. 1t ought to be read by every
thoughtful man, particularly by those
who have been tempted to advocate fol-
lowing in the dishonorable policy of New
Jersey in order to get some revenue for
the State. In less than column the
Sun has stated the duty of the State,
the objects for which capital comes into
a State, and shown that when corpora
tions are treated with scrupulous fair
ness the Southern States cannot be too
careful in protecting their natural re-
sources from the onslaughts of the
trusts" The Sun says:
within the past few years successive
Texas Legislatures have enacted laws de-
signed to curb the growing power of GER
tain trusts which have extended their
operations to that State. Some of this
legislation was undoubtedly drastic and
not of a nature to encourage the invest
ment of trust capital in Texas. The laws
may have been conceived in spirit or
'unreasoning hostility as some trust adj
yocates alleged, and they may shave
caused corporate capital to keep out OF
the State But the purpose of the legis-
lation was undoubtedly sound and COM
mendable. The highest court in the Uni
ted States has more than once intimated
that effectdal regulation of the trusts
could be best accomplished by State
legislation. This was the opinion of Mr..
Olney while Attorney General. and it
was also the opinion held by Mr.. C1eve-
land and expounded in one of his mes
sages.
Neither Texas nor any other South
ern State it may be assumed, desires to
exclude outside capital. Such invest
ments will be welcomed in the future, as
in the past. Outside capital has con-
tributed largely to the development OF
the Southern States It was not sent
there, however, from any unselfsh mo-
tive, but because the field for invest
ment was an inviting one, offering fair
returns upon investments. But neither
Texas nor any other Southern State can
afford. in the interest of it's own people,
to give corporate capital any undue ad-
vantage or to exempt it from such regu-
lations as the public welfare may demand.
Every State owes a duty to it's people,
and while corporations should be pro-
tected in their rights, charters should
be framed in such a way as to surrender
no public interest. corporation operat-
ing under blanket charter granted in
New Jersey, for instance, ought not, In
virtue of the powers and privileges which
it enjoys under that charter, to be given
a free rein in any other State.
.'The great natural resources of the
South will unquestionably continue to
attract outside capital. 1t is for the
Legislatures of the Southern States to
say whether these resources shall gradu-
ally come into the possession OF immense
combinations of capital and be exploited
for the benefit of any of the huge trusts
now in existence There are many
economists who say that it is folly to
attempt to stem the tide, that concen-
trations of capital are the logical result
of modern conditions, and that 1T is bet
ter to accept the inevitable with a good
grace than to resist the movement WITH
out any prospect of success. Southern
Legislatures should not yield everything,
however, simply because some capitalists
complain of their antitrust laws or OF
the legislation enacted to check the en-
croachments of corporations. Capitalists
may intimate that they will withhold
their investments as long as the South
Is hostile to trusts. but when this hos
tility takes the shape OF only such laws
as are essential to protect public inter-
ests the South should not swerve hair
breadth from the attitude it has assum-
ed The public welfare snouid De the
paramount consideration; after that the
interests of the corporations.
Texas is a great State and the New
Workers will doubtless be impressed~by us
magnitude and its vast natural resources.
The capitalists from Gotham will be given
hospitable reception as guests OF the
Empire State of the South. But when the
Texans are invited by their visitors 70
make it easy for the trusts and foreign
corporations and tempted with assurances
that the State will be flooded with out
side capital they would do well to look
the gift horse in the mouth with cool
and steady gaze. Outside capital is not
going to Texas or any other State except
for purely business purposes Before
Texas repeats its antitrust legislation
and throws down the bars it would be
wise for the people of that State to re-
fleet whether outside capital is worth
obtaining under such conditions. Corpora
tions ought to be treated with scrupu-
Ir.t1 frs1 70 ~ al
right which is nominated in the bond
AS for the rest, they should be operated
under such charters that there will never
be any doubt when they overstep the
limits Of these charters. The moment
they go beyond their charters the State
should call them to account. That seems
to be the drift of public sentiment ii
Texas-and it is healthy and pruden
sentiment. Texas and other Southern
State cannot be too careful in protecting
their natural resources from the on
siaughts Of the trusts.