The labor world., 1903-09-05
TO SMASH THE
BIG TRUSTS
ABLE LAWYERS ADVISE
DRASTIC: METHODS.
STATE OWNERSHIP. .-.::.=. =:
T. IN. 81: = * * s...= t. lis HINTED AT.
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Big Row in American Bar Association
STATE OWNERSHIP :.::::...:. +
Big Row in American Bar Association
Trust Lawyers Denounce Report
Of tho Committee on Subject.

Hot Springs. Va, Sept. Skill or
curb the trusts, was the advice, this
| week, OF the committee on commercial
law to the American Bar association.
The association has a membership of
1,750, and is the leading organization
Of lawyers in America.
Things have been moving in the con-
vention in a humdrum sort of way
when Walter S. Logan, a leading at
torney Of New York, presented his re-
port. 1t came like thunderbolt, and
instantly the hall was in turmoil.
Dozens Of lawyers sprang to their feet
and wanted to be heard. They were
corporation lawyers, themselves, and
they didn't propose to have anything
done that might be distasteful to their
employers.
Mr.. Logan at first made verbal re-
port from his committee. He commend
ed the national bankrupt law and then
discussed the trust question. He said
it would have to be settled by the law
yers: if they did not the demagogues
would. If combinations continue COM
petition will cease and commercial
jurisprudence will eventually be entire
ly changed. The committee, he said,
had reached the unanimous conclusion
that modern Industrial combinations
should, be stayed. The report proposed
the following remedies:
!. We can tax them to death; or, if
that is too radical a remedy, we can
tax them until their growth and en-
largement is impeded. There are con-
stitutional provisions requiring direct
f0 ho md
these provisions it is probably i'm
possible to discriminate in the matter
Of direct taxation against corporations
holding large amounts Of taxable pro-
perty. There is, however, a franchise
tax imposed by most of the states upon
corporations at the time of their in
corporation and annually thereafter.
This franchise tax is in almost all
states in some way graded so as to
tax the small corporation at a higher
rate than the large one. In our iudg-
| ment the gradation should be continued
but it should be a grading up instead
! OF down. The United States Steel cor
poration has a capital of over $1,000
| Oo0,0o0. The gradation stages might be
slow and easy enough to please the
| most conservative, and yet result in a
taxation of ten per cent upon the last
hundred mil rs. How long would the
| United stat~:> Steel corporation conti-
nue. under. that system. Of taxation?
| 2. We can compel them to render
better and cheaper service If the COM
bination of the Northern Pacific and
the Great Northern railroads is great
>,ntu gh public disaster to have war
ranted the attention which it has. at
tracted,> it could have been prevented
much easier than by a hundred sher-
nan antitrust laws by a. single United
tates Statute that required any cor
s'or:ation '':< o. : engaged in interstate COM
yt,t 4eree. to reduce its s rate fifty per cent
+ ..o *o and g from every. point where competi-
ion III has been prevented by combina-
merger common control, or agree.
* s .5
. CONGRESS Il corpora
in ssin.