The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-21
A Time for Thinking.


Although no bill to regulate the trusts.
or, more properly. the corporations, has
been introduced in either house Of Con-
gress. We can foretell the character Of the
legislation to be attempted. President
ROOSEVELT has described it in his recent
message as founded upon the speech de-
livered by Attorney General KNOX at
Pittsburg on Oct. Is and the various
statesmen preparing to figure in the dis
cussion seem to be following that idea.
But for our present purposes the length
to which the fiercest attack upon corpora
tons may go is immaterial, because the
gentlest one arranged Is momentous
enough to demand consideration of the
gravest kind before being adopted.
The most cautious measure advocated
for the regulation Of corporations Ia to
demand of them publicity, something on
its face 80 simple and reasonable that
its friends are amazed that there should
be opposition to it. What harm can it
do TO business? What honest corpora
ton can oppose it9 There can be no
sound objection to IL, they say, and it
will abolish the particular trust evil
which all experts in that subject agree to
be the worst and most productive of the
other evils, namely, overcapitalization.
The aforesaid charge against over
capitalization is to our mind OF Ques-
tionable validity, and under all circum-
stances puerile in the extreme. The
world will not come to an end if the man
ayers Of a new company issue million
shares of stock with face value Of 81 900
each, instead of thousand shares of
stock at the face value Of 81 each, which
some other capitalists think represent
more truly the value of the enterprise.
Moreover, as the making Of very large
corporations has passed its infancy, the
worst in the way of overcapitalization
may be regarded as over; and since the
first step in the formation of a company
is to publish every detail Of its capitali-
cation, publicity as a legal requirement
would be likely to prove superfluous.
All the bills for publicity are aimed at
corporations engaged in interstate
commerce, which the Constitution gives
power to Congress to regulate. This
proposition would not give cause for
special anxiety had we not before us an
indication OF how unbounded is the field
over which the proposed Federal power
is designed to be carried. We return to
Mr.. KNox's speech:
II be true that . state can authorize or per-
| nit a monopoly of production within Its borders
because u has the power over production as such.
| although It indirectly Affects Interstate commerce.
may no, the United states regulate interstate
merce, ever which It has exclusive control. even
though Il indirectly Affects production. over which.
| as SUCH II has no controi' II Congress under It's
power to regulate Interstate commerce may utterly
| destroy a combination and forfeit Its property In
| interstate transit as the Sherman act provides.
| bccauseL, restraints sush commerce. II seems rea
| sonablc TO say that It can In the exercise OF the
! same power deny to combination whose life II
cannot reach the privilege OF engaging in interstate
| commerce except upon such terms as Congress
| may prescribe TO protect that commerce from re.
| straint."
This scheme Of regulation by coercion,
the confessed use of power given for one
purpose for the accomplishment of an
other purpose, was substantially made
the Administration programme in this
portion Of the last Presidential message.
| believe that monopolies. unjust discriniina.
tons. which prevent or cripple competition. fraud.
ulent and other evils In trus, or
| gani zauons and practices which iajuriousy AFFECT
interstate trade can be prev entcd under the power
| OF the Congress to regulate commerce with for.
cign nations and among the several States" through
regulations and requirements operating directly
upon such commerce. the instrumentail:lcs thereof
| and those engaged therein"
Never before did the White House send
out so startling doctrine.
The most important part OF the BUSH
ness of the United States is in corporate
form, and no great corporation in the
Union confines its trade to its own State
Our domestic commercial life is ESSEN
tally interstate. Hence any statute
passed under the present auspices af-
fecting corporations enga ged in inter-
state commerce. will be aimed mt every
corporation, or at all business, in the
country, and law requiring publicity in
the Federal name lays the foundation for
Federal control of our industrial ao-
tivity, its instrumentalties and the men
engaged in it, complete and absolute
That Federal law exacting publicity
from corporations would work substan-
TALLY revolution in our political system
there can be no doubt. Tho nation
could scarcely continue a Union in the
original sense, for life would be taken out
| of the States The chanpes efIected in
the relations between the Federal Gov
eminent and the States and between the
! Federal GovernPent and the individual