Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1903-02-16

commission shall pay a tax OF 10 per cent
on the capital stock issued and ontstand-
ing, and the same annual tax is levied
upon all stock issued in excess OF the
actual money invested in the enterprise.
Such, in brief, is the Shallenberger bill.
The bin is in line with the Kansas City
platform End is Il much more effective
measure than anything proposed by the
republicans or likely to be proposed by
them. 1t places the entire matter OF in
terstate commerce under the control OF
the commission to be created. Corpora
tiol,s organized for the purpo OF engag-
ing in purely state industry are not at
corporation organized TO engage in inter-
state commerce must secure a license
before going outside OF the state OF its
ori.in The attempt to Engage in inter-
state commerce might be more accurately
defined as the use, or attempted use, OF
railroads, telegraph lines or the mails for
any business outside OF the state in
which the corporation is created.
This bill does not interfere with the
fright of the state to create any corpora
ton it needs for its own use, but it makes
it impossible for state to convert itself
into den OF thieves and organize great
industrial combinations to prey upon the
rest OF the country. The bill ought to
provide that the license issued by the
commission is not to interfere with the
right of every state to regulate foreign
corporations doing business in the state.
The license contemplated is simply a
license that permits the state corporation
to engage in interstate commerce-it
cannot leave the state OF its origin with
out obtaining this license-but when the
license is obtained it does not protect the
corporation, or should not, from the laws
deemed necessary by any state for the
protection OF its own people. In ether
words, the federal remedy should be
added to the state remedy, not substi-
iuted for it,
The bill ought to go little farther in
the way Of penalties. The tax to be
collected is all right, but there should
be a criminal penalty imposed upon any
corporation official who attempts to en-
gage an interstate commerce before the
license is obtained, or who in any way
takes part in the issue of watered
stock. The bill should also provide for
the revocation of the license by the com.
mission whenever the corporation vo-
lates the conditions upon which the
license was granted, and when the
license is revoked the interstate bnsi.
ness Of The corporation must be suspend
ell until new license is issued.
The ShalIenbergcr bill is sound in
principle and would he effective in prac-
tie. Instead OF compelling the govern
ment to search the country for violations
Of the law it would compel the COR
porations to seek the government
and obtain a license before engag-
ing in business. The system proposed
by the bill is similar to the license sys-
tenn now in operation, hut much more
easily enforced. If the government at
tempted to collect tax from each liquor
dealer after he had sold liquor or at
tempted TO enforce provisions against
persons who sold without first requiring
license, it would End its task very
difficult one. But when it requires the
payment Of the license fee in advance
the work becomes much easier. In the
case of corporation it could not do
much Interstate business without being
detected. Under such law it would be
as impossible for corporation to do any
real harm without the fact coming to the
knowledge OF the government.
The democrats in the senate and house
ought to agree upon a substitute which
follows the lines Of the Shalenberger
bill and offer it in lien Of the republican
measure. Such substitute would draw
legislation desired by the democrats and
the weak and partial measures thus far
proposed by the republicans.
If it is thought an Unnecessary require
ment to compel all corporations engaged
| in interstate commerce to take out the
license a beginning might be made by
requiring it Of all corporations having a
capital of more than q certain amount
| fixing the same low enough so that no
monopoly can be secured.
1t is imperative that the democrats
shall take positive and aggressive posi-.
ton. Criticism is we'll enough in its
way, but affirmative action is necessary
for party that proposes to do something
! in the interest of the masses of the
people.