Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-02-10

port says:
The further consideration given to the
subject by the commission has justified in
nearly all particulars our former conclu-
Eious ana recommendations. Since that re-
port was made, combinations and their
ITethCds, both here and in Europe, have
been more thoroughly studied. The in1u-
ence of combinations in the United States
IL extending our foreign trade and the
methods and influence of foreign combina-
tons in competition with them have been
observed. These matters are presented In
accompanying volumes.
Further Recommendations.
We now further recommends:
l. That district attorneys of the United
States be authorized and directed to insti-
tute proceedings for violations Of the fed
eral antitrust laws.
. That combinations and conspiracies,
in the form of trusts or otherwise In re-
straInt o. trade or production, which by
the CONSENSUS of judicial opinion are unlaw-
fl. should be SO declared by legislation
uniform nall Jurisdictions, and to all
persons. and such statutes should be thor
oughly enforced,
b That stringent laws be enacted by
the Congress and the several state legsla-
lures, making both penal and criminal the
vicious practice of discriminating between
Customers. and cutting rates or prices in
orc locality below those which prevail gen.
orally, for the purpose of destroying local
competition; and that such laws should give
t. any person damaged the right to sue
for and recover prescribed penalties. and
make 1t the duty of prosecuting officers to
proceed against tine offenders.
4. That to prevent overcapitalization the
several state legislatures enact laws SINH
lar To the anti-stock-watering laws of Mas
sdchusetts; also, to provide for state super
vision of all public service corporations,
with power TO recommend or regulate rates
Tor service and to pass upon the public
need, deSirabilit-. or exigency of any pro-
posed new service.
> That plan three-Federal taxation and
Observation-Disclosures outlined be adopted
and 10 accomplish its purposes
'al That an annual franchise tax be i'm
IoSed upon all state corporations engaged
in Interstate commerce, calculated upon the
gross earnings of each corporation from its
Interstate business; that the minimum rate
of such tax be low but that the rate be
gradually increased with increases in earn
1ngs.
A Permanent Bureau.
tbl That there be created in thu Treasury
Department permanent bureau, the du-
tics Of which shall be to register all state
corporations engaged In interstate or for
eisn commerce.; to secure from such cor
rorations all reports needed TO enable the
government to levy a franchise tax with
Certainty and justice, and to collect the
same. TO make such inspection and exam
lnatlon or the business and accounts of
completeness and accuracy of the informa-
ton needed to ascertain whether such cor
poratiOns are observing the conditions pre-
scribed in the act, and to enforce penalties
against deltnquents: and to collate and pub
Ish information regarding such coEbina-
ti0ns and the industries in whica they NAV
be engaged, so as to furnish to The Con-
gress proper Information FOR possibl, future
legislation.
The publicity secured by the govern
mental agency should be such as will pre-
vent the deception Of the public through
secrecy In the organization and manage
ment OF Industrial combinations or through
false information Such agency would also
have at It's command the BEST sources of
information regarding special privileges or
determinations OF whatever nature, by
winch industrial combinations Secure mo-
nopoIy or become dangerous to the public
welfare 1t Is probable that the provisions
herein recommended will lie sufficient to re-
move most of the abuses which have arisen
In connection with Industrial combinations.
The remedies suggested may be EMPLOYED
Win little or no danger to industrial pros
perity and with the certainty of securing
information which should enable the Com
gross TO protect the public by further legis-
lauon If necessary.
q; That, If department of commerce and
industry shall be established one NJ lie
functions should be to call attention from
time to time to such economic changes In
the world progress as may sugga4t tariff
notifications, and also 20 such commercial
opportunities as may suggest reciprocal
legislation or arrangements, and further
more, to any evils Incident TO combina tons
which changes in the tariff will correct
Congress to Provide a Commission.
.. That. in view of the extent and per
fect!on Of our manufactures of our growing
export trade and the sharp competition It
Encounters in foreign markets, of the prac-
uce BY some exporters OF making lower
prices abroad than at home. and Of the de-
ABILITY Of protecting the consumer as
Wei as the producer. without awaiting other
=, !dt-oh' Inc Congress provide for a COM
mission TO investigate and study the sub
yTG'' ana to report as soon as possible
VIA concessions in duties may be made
viii ut endangertng wages or EMPLOYMENT
at home. what advantages abroad NAV he
OBTAINED therefor, and also to suggest
Sired 13 oe
II experience shall prove thai tbase -a-,.
ORES are not sufficient to properly control
the great corporations and combinations
y - ay De wise LOT the Congress to enact a
teoeral incorporation law. Should such q
law be enacted. 1t would then liz. POSSIBLE to
Increase the franchise tax upon state cor
poratlons engaged in interstate commerce
50 as 10 compel them to reorgantze under
the federal law. When organized under q
FEDERAL law. II would be possible as has
been pointed out to apply to corporations
eny degree of publicity or restriction that
might be authorized. In the meantime the
Separate states should amend their cor
Poration laws so as to require greater pub
Lefty. as outlined in our preliminary report.
Mr.. Phillips Minority Report.
This report Is signed by fifteen members
of the commission, including Mr.. Thomas
W. Phillips, who appends an additional re-
port of his own, which covers twenty-five
printed pages Of the report, the report of
the commission itself being less than four
pages In length. Mr.. Phillips says he can
20. concur in the historical review. He in
dorsss the recommendations of the COM
mission. OF the steel trust Mr.. Phillips
Gays:
THE evidence shows 1t is not safe to
truS, private combinations with the public
veal II may reasonably be apprehended
that the more recent combina lions will fol-
low the practices OF the older trusts The
United States Steel Corporation exceeds all
these in that IL Is a combination Of COM
binations. The stocks of the original cor
porattons were watered when they were
Organized and again watered when they en-
tered the giant combination 1t Is esti-
mated by practical men that the actual in
sestment in its plants and Transportation
equipment does not exceed one-third of its