Evening journal., 1902-10-15
KNOX TALKS ON
THE BIG TRUSTS
Discussed by Attorney-Gen-
eral at Pittsburg Banquet
Last Night
POINTS OUT EVIL AND ABUSES

UNIV OOi LII nUb nuOOLO
Pittsburg, Pa, Oct Is. - Attorney
General Knox addressed the members
Of the Chamber of Commerce at the
Hotel Schenley here last night. There
were 700 guests present. The sub
ject of his address was "The Com
merce Clause OF the Constitution and
the Trusts" Mr.. Knox was afterwards
entertained by w. II. Keech, chairman
Of the committee in charge of the
meeting. In part Attorney General
Knox said:
"The people, by common consent,
have denominated the great Industrial
and other corporations now controlling
many branches of commercial business,
trusts. That there are evils and abuses
in trust promotions, purposes. organi-
cations, methods, management and ef-
fects none questions except those who
have profted by those evils. That all
or any of these abuses are to be found
in every large organization called a
trust no one would assert who valued
his reputation for sane judgment.
"The conspicuous noxious features
of trusts existent and possible are
these: DISQUALIFICATION, lack of pub
licity of operation. discrimination in
prices to destroy competition, insufii-
Client personal responsibility of off,
GERS and directors for corporate man
agement, tendency to monopoly and
lack of appreciation in their manage.
ment of their relations to the people,
for whose benefit they are permitted
to exist
"Overoapitalization is the chief of
these and the source from which the
minor ones flow. 1t is the possibility
of overcapitalization that furnishes
the temptations and opportunities for
most of the others. They should be
subject to visitorial supervision, and
full and accurate information as to
their operations should be made regu'
larly at reasonable intervals. Secrecy
in the conduct and results of operation
is unfair to the non-managing stock
holders, and should, as well for rea
sons of state, be prohibited by law.
"The constitution provides The
congress shall have the power to regu
late commerce with foreign nation:
and among the several states and with
the Indian tribes Plainly. the power
must reside somewhere, either in the
nation or in the states reservations
but the effect of present doubts is t
create a dilemma under which, ap
parently, all power vanishes. the states
saying, some of us do and some of u!
do not approve or permit monopolistiC
production; that is our concern, bu
when the products cross our borders
the problem passes beyond us and be
comes a matter of national regulation
and control; and the nation appearing
to reply, / can deal with commercl
passing beyond any one state, but eff
fective regulation here may indirectl!
interfere with production, and that Il
a state matter which may not touch
And so the national and local sover
eighties halt and the delictum es
capes.
"Conceding that the present law 4
not effective throughout the situation
we come to the final alternative: Ma.
not congress, under the existing con
stitutional grants, amend and extenl
the law, and thus remedy its defect
and so effectively regulate nationa
and foreign commerce as to proven
the sitting of competition, the regu
lating OF output and price, and tn
restraining of national and interne
tional trade? If the answer to thi
question should be in the affirmative
a second question follows: How Nigh
congress so amend the present law?
Il do not scruple to say that In m
judgment the more a thoughtful min
reflects on the first question. the NOR
unhesitatingly will an affirmative al
swer be returned.
"The president said in his first mel
sage he did not think the authority {
congress to protect the people agains
the evils of the trusts had been ei
hausted. The views / have expresse
are but an amplification of his. NJ
whole purpose in what have said
to challenge the proposition that W
are helpless under our system of go
ernment to deal with serious problem
which confront us In respect to OF
greatest interests. Since the radios
questions of human rights and huma
governments have been settled th
production, preservation and distribl
ton Of wealth receive the chief attei
ton of civilized peoples"