The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-08-28
NO CHANCE FOR
SMALL TRADER
lcontinued from Page onel

tLpnLnueQ from rage Ouc.l
ton. the sugar trust rays big dividends
on a large capitalization The railroad
combinations arc economically impreg-
naele. FOR they pay II Mr. Morgan
shipping trust and Mr.. Schwab's snip
building trust are failures. they are eN-
eeptions TO the rule We cannot,
therefore, rely on natural forces, Oh
the laws Of supply ana demand or on
economic considerations to limit the
growth Of modern combinations. If
they are undesirable. if the people 81
the American nation would be better
off without them or with limitations
put on them they must put these Inn
itati0ns on by the action OF their legls-
latures. their congress ard their courts.
The American bar must act, and the
American Bar association must take
the lead. II the Northern Securities
company had been allowed to go on.
the next thing to follow IL would nat
urally have been a United States Sc
curjties company, which would hold
the majority Of he stock Of every rail-
read where the American flag flies"
Proposed Remedies.
The report proposed the following
remedies:
"First-We can tax them to death;
or if that is too radical. we can tax
them until their growth and enlarge
ment is impeded. There are consutu-
tional provisions requiring direct tax
atiOns to be uniform, and in view Of
these provisions il is probably impos-
sible to discriminate in the matter Of
direct taxation against corporations
| holding large amounts OF taxable prop
erty.
There is. however, a franchise tax
/ imposed by most OF the states upon
/ corpora tons al the time Of their incor-
/ pOra lion. and annually thereafter. This
/ franchise tax is in almost all states in
( some way graded so as TO tax the
! small corpora ton at higher rate than
| the large one. The first Sl.00O,000 pays
a higher rate than subsequent millions.
| In our judgment, the graduation
/ should be continued. but it should be a
/ grading up instead Of down. We would
leave. perhaps the first 100000 free
\ and the first 81. 900. 900 cheap. and raise
the rate With each succeeding million.
/ The United States steel corporation has
a capitalization of over 1000 millions
| The graduation stages might be slow
and easy enough to please the most
! conservative and yet result in a tax
alton of 10 per cent upon the last
800 600, OO0. How long would the
/ United States Steel corporation con-
.
Statute Enough.
'SecOnd-We can compel them tC
render better and cheaper service. II
the combination of the Northern Pa
cific and the Great Northern railway:
is a great enough public disaster tC
have the attention which il has at
tracted it could be prevented mucf
easier than by 100 Sherman anti-trus
laws by a single United States statute
that required any corporation engaged
in Interstate commerce to reduce it,
rates 80 per cent to and from every
point where competition has been pre-
vented by combination, merger, com
mon control or agreement. Congress
can enact that any corporation or in
dividual VINO engages in interstat,
commerce must furnish its services O.
supply its goods at lower rates whef
ever by any combination competition
is prevented than where competition i
left free.
''Third--If necessary, the state itseI
can enter the Industrial field as a pro
ducer and restore the force Of competi
ton to its former supremacy by be
coming itself a competitor Of the grea
: trusts @
Report AppIauded.
Great applause followed the reading
; of the report.
The report is signed BY all the mem
bers Of the committee. consisting o
; Walter 5. Logan. Henry Budd. Gardi
| ner Lathrop, George Whitlock an
r John Norris. jr.
Al the night session q resolution wa
adopted directing the report to be com
= mltted with instructions to the com
= mittee to report remedies for iHegs
s combinations which threaten CONNER
D cial intercourse. This action is regar I'd
e cd as victory Tor the party whic
ccntended that the subject of trusts
e an appropriate one tor the America
Bar association 10 consider.