Omaha daily bee., 1902-12-07

FIRST STEP FOR TRUST REGULATION
The first step in the United States to
ward trust regulation was taken by the
legislature Of Minnesota nine years ago
through the passage Of a resolution di-
recting the governor to call n national
convention to discuss the n of
trusts and deYise or suggest means for
curbing their power. In conformity with
these resolutions invitations were issued
to the governors Of the various states to
appoint delegates to al antitrust con-
vention to be held in Chicago in the
month Of September, 1898. The cOnven-
ton, presided over by Governor Nelson,
after full discussion memorialized the
president of the United States to recon-
mend i'm his forthcoming message to
congress the creation Of a bureau of
publicity and s~u'~rvision to prevent fic-
titious or fraudulent capitalization by
corporations engaged in any business
coming within the purview of the fed
eral constitution, relating to interstate
tOIllQtICt, Sulu buItdu w bt III ma -
of a commission appointed by the presi.
dent. The recommendations of the con.
vention failed, however, to meet the alp.
prevail of President Cleveland and were,
therefore, ignored in his message.
The principles enunciated in Chicago
nine years ago have now been embodied
In the bill introduced by Congressman
Littlefeld and will, if enacted into law
strike the tap root of the worst evil en-
gcndered by the trusts, which everybody
| who has given the subject serious
thought comedies to be over-capitaliza
ton.
When the searchlight of publicity is
turned upon the colossal corporations
known as trusts. combinations and con
| solicitations designed mainly for stock
jobbing purposes will be made impossl
BILE, or at least Improbable.
1t is doubtful, however, whether tho
Interstate Commerce commission, upor
whom Congressman Little1eld desires
to confer the power Of supervision Of
corporations engaged in interstate CON
merce, will be able to make this super
vision efficient. The commission wal
portation companies, but experience hai
shown that the task imposed upon it Il
beyond it's reach. The supervision ant
rC gulatiOn of 100000 miles of railwa!
has overtaxed the energies of the com
mission and will monopolize all its tim,
if the increased powers asked by tn
commission in the line of it's presen
functions were conferred upon it by con
Sress.
1t may be taken for granted, however
that the next congress would classif,
the corporations that will pass unde
the supervision of the commission so a
to relieve it of a portion of it's most ex
acting duties by creating an auxiliar
bureau to whom would be referred Gel
tain classes of corporations subject t
the supervision Of the Littlefield bill.
The attempt of Congressman Little
field to repress Over-capitalization by
1 per cent tax on watered stock woul
commend itself to favorable considers
ton If the provision is not in confiC
with the constitution, or rather does nc
overreach the powers of congress undt
existing constitutional limitations. Pra,
tically all corporations embraced in til
trust list are the creatures of state Ia,
and then subject only to taxation by I'll
state, excepting where taxes are impose
under the tariff and internal revenr
laws. The supreme court decisio
against an income tax would justify IL
assumption that Il corporation tax c
stocks would be declared void. TIL:
feature of the bill, however, willNnot Il
validate the provisions relating TO pu
: liclty and should, therefore, not prove
) stumbling block in the way of its speed
| passage through congress-. The expel
/ ment proposed by Congressman Littl
? field should by all means be tried as Il
first and most logical remedy for Il
worst evils engendered by the trusts.
1