The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1901-12-06

nomlnaIiy opposing. In dealing win
business interests. for government TO
undertake by crude and ill-considercd
legislation to do what may turn out TO
be bad. would be to incur the risk OF
such farreaching national disaster that
it would be preferable to undertake
nothing at all. The men who demand
the impossible or the undesirable serve
as the allies OF the forces with which
they are nominally at war. for they
hamper those who would endeavor to
find out in rational fashion what the
wrongs really are and TO what extent
and in what manner ii is practicable
| to apply remedies.
Evils OF Over Capitalization
All this is true: and yet 1t is also
true that there are real grave evils.
one OF the chief being over-capitaliza-
ton because of its many balefui con-
sequences; and a resolute and practical
effort must be made to correct these
evils.
There is a widespread conviction In
, the minds of the American people that
, the great corporations known as trusts
are in certain of their features and
tendencies hurtful to the general well
fare. This springs from no spirit OF
envy or uncharitableness, nor lack OF
pride in the great industrial achieve
ments that have placed this country at
commercial supremacy. 1t does lot
rest upon lack of intelligent apprrcia-
| ton of the necessity of meeting chang
ing and changed conditions of tra de
with new methods, nor upon Ignorance
of the fact that combination of capital
in the effort to accomplish great things
is necessary when the worlds progress
demands that great things be done It
is based upon sincere conviction that
combination and concentration should
be, not prohibited, but supervised and
within reasonable limits controlled: and
in my judgment this conviction is right.
Government supervision OF Corpora
tioDs
1t is no Limitation upon property
rights or freedom of contract to require
! that when men receive from govern
ment the privilege of doing business
under corporate form. which frees them
| from individual responsibility, and en-
ables them to call into their enterprises
| the capital of the public, they shall do
| SO upon absolutely truthful representa-
| tions as to the value of the property in
| which the capital is to be invested
| Corporations engaged in interstate
| commerce should be regulated If they
| are found to exercise a license working
| to the public injury. 1t should he as
| much the aim of those who seek for
world of crimes of cunning as to rid
| the entire body polite of crimes Of vio-
| lence. Great corporations exist only
because they are created and safe
| guarded by our institutions; and it is
| therefore our right and our duty to see
that they work in harmony with these
| institutions.
| The first essential in determining how
to deal with the great industrial combl-
| nations is knowledge of the facts-puO-
| licity. In the interest of the public,
| the government should have the right
| to inspect and examine the workings
! of the great corporations engaged II in
terstate business. Publicity is the only
| sure remedy which we can now invoke.
| What further remedies are needed in
| the way of governmental regulation. or
| taxation, can only be determined after
| publicity has been obtained, by process
| of law, and in the course of adminIs-
| tration. The first requisite is knOwi-
| edge, full and complete-knowledge
| which may be made public to the world
| Artificial bodies, such as corpora tions
| and Joint stock or other aSsocia tionS.
| depending upon any statutory law for
| their existence or privileges, should be
| subject to proper governmental Guper-
| vision. and full and accurate informa-
| ton as to their operations should be
| made public regularly at reasonable
| intervals.
The large corporations, commonly
| called trust, though organized in one
| state, always do business in many
| states, often doing very little business
| in the state where they are incorporae
| ed. There is utter lack of uniformity
| in the state laws about them; and as
no state has any exclusive interest in
| or power over their acts, ii has in prac-
| tice proved impossible to get adequate
| regulation through state action. There
| fore. in the interest of the whole people
] the nation should, without interfering
| with the power of the states in the mat
| ter itself, also assume power of super
| vision and regulation over all corpora
| tlonS doing an interstate business.
! This is especially true where the cor
| poration derives a portion Of it's wealth
| from the existence of some monopolisric
| element or tendency in it's business.
| There would be no hardship in such su-
pervision: banks are subject to 1t, and
| in their case it is now accepted as q
| simple matter of course. Indeed, Ii is
| probable that supervision of corpora
| tionS by the national government need
| not go so far as is now the case with
| the supervision exercised over them by
/ so conservative a state as Messachu-
| setts, in order to produce excellent re-
| suits.
| When the constitution was adopted,
| al lHe emu Oh the eighteenth century,
no human wisdom could foretell the
sweeping changes, alike in idustrial
| and political conditions. which were to
| take place by the beginning OF the
| twentieth century. At that time il was
| accepted as a matter of course that the
| several states were the proper authori-
| ties to regulate so far as was then nee
essary, the comparatively Insignificant
| and strictly localized corporate bodies
of the day. The conditions are now
wholly different, and wholly different
| action is called for. I believe that a
| law can be framed which will enable
the national governmen to exercise con-
troll along the lines above indicated; !;
profiting. by the experience gained
| through the passage and administra-
| ton of the Interstate Commerce Act.
II. however. the Judgment of the con-
| gress is that it lacks the constitutional
| power TO pass such an act, then a con-
| stitutional amendment should be sub
| mitted to confer the power.
Secretary of Commence and Industries