Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-12-23
MR.. GARF|ELO'S PLAN
Purpose in Urging a National
License Law Explained.
LONG-DISCUSSED IDEA
VIEWS EXPRESSED BEFORE THE
INDUSTRIAL COMMISSION.
"Trust" Magnates Were Not Opposed to
the Proposition of National
Incorporation.

The purpose of Commissioner Garfield in
recommending a license for corporations
doing an interstate business has not been
clearly understood by number of men in
terested in such corporations and others
who fear that this action is so radical as
to seriously hamper business transactions.
1t is stated that the license for such cor
porations was adopted merely as means
Of accomplishing an end without interfer--
ing too radically with conditions under
which business is being done by corpora
tions operating under state charters.
The proposition that interstate corpora
tions should be required to operate under
a national incorporation act has long been
discussed.
Views Of Trust Magnates.
When the Industrial commission took
testimony in this city several years ago 1t
was developed that many of the captains
of industry" favored such national In
corporation law. Prominent among these
was Mr. John D. Archbold, vice president
of the Standard Oil Company. To the sur
prise of many Mr. Archbold and others
high in the industrial world took the view
that national Incorporation for companies
doing interstate business would have
many advantages.
It was shown that such an incorporation
would simplify matters very greatly for
many OF the Corporations. MANY VI THESE
so-called trust magnates also approved the
idea of publicity in the affairs of corpora
tions up to the point when it might be
necessary to maintain secrecy in relation
to corporation business that might be of
advantage to competitors. Some of the
members of the industrial commission sup
posed that all the captains of industry
would promptly put both feet down hard
on any proposition for national incorpora-
ton act and publicity of the affairs of the
corporations. They were surprised to find
tla- her ply- limit tod n
such propositions.
Now the proposition for corporation
license is in many respects looked upon as
carrying out, in another way, the purposes
Of the national incorporation act, although
without affording advantages for the cor
porations. The license plan was adopted
in order to avoid too great interference with
conditions in the states and to prevent the
charge of intense centraIizati ton of power
by taking from the control of states cer
tain powers that they have been exercising
in the past.
Regarded as Unique Proposition.
This proposition, however, has come upon
public men as unique While the national
Incorporation of companies doing an inter-
state business has received widespread dis
cussion the proposition to exercise much
the same powers by the national Congress
by means of license with certain require
ments and restrictions is one that appears
too new to allow many lawyers TO express
an of-hand opinion on it. They declare
that while at first blush it appears TO be
simple enough they are not sure about how
it will work out.
1t is not intended on the part of the bu-
reau of corporations to require every cor
poration that might do an occasional inter-
state business take out a license. 1t is eX
pected that when the time comes to frame
the provisions of this license law it will
exempt from the necessity of having such a
license corporations that do but very
small interstate business in proportion to
their entire transactions.
The proposition does not, of course, affect
individuals engaged in interstate business.
The recommendations of the commissioner
of corporations relate solely to corporations
tfons.
The Tendency Feared.
While managers of large corporations in
many instances do not object to being re-
CURED to take out national incorporation
they at the same time regard the PROPOSE
ton to bring their concerns under the con-
troll of Congress with some feeling of un-
easness for the future. Some of them fear
that once Congress begins to feel that it
has control of the great corporations 1t
may aim at a constantly increasing scope
of authority.
In fact, the restriction that it is proposed
TO place upon the interstate corporations is
by many looked upon entirely parallel
to that which has been applied to the rail-
roads of the country. The interstate COM
merce law in its original form, while it was
not desired by the railroads, was not re-
garded as alarming to them when finally
passed. But after that law has been en-
forced and the people have become accus-
toned to the thought that the government
through this mediumship should exercise
control over the railroads. there are propo-
sfHons for increased power which do alarm
many of the railroad magnates. Some OF
the corporation men feel that they will
have the same experience with the bureau
of corporations that has been had by the