New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-22
REMEDY FOR TRUST EVILS.
GarfcId's Recommendation-Present,
System "Thoroughly Vicious"

have on business and because OF the possibility
that g might indicate the policy OF the admin
,s,rauon in regard TO corporations engaged IN
interstate commerce. The most important feat
ure of the report IS Commissioner GarfieldAs
recommendation that Congress be requested to
consider the advisability of enscting law pro-
yding for federal franchise or license for such
corpora tons The general features of such
law, he says. should be as fellows:
The granting OF federal franchise or license
% engage in Interstate commerce.
The imposition of all necessary requirements
as 10 corporate organization and management as
q condition precedent to the grant of such fran
ehise CT license
The requirement of such reports and returns
IS may be desired, a condition of the reten-
sicn Of such franchise or license.
The prohibition of all corporations and COR
porate auenc es from engaging in interstate and
foreien commerce without such federal franchise
or license.
The full protection of the grantees of such
franchise or license who obey the laws applicable
thereto.
The RIGHT 70 refuse withdraw such fran
obse or license In case of violation of law. with
appro yiate right Of judicial appeal to prevent
sbUse OF power by the administrative officer.
Mr. Garfield says his bureau, under the direc-
ton Of The Secretary Of Commerce and Labor
affords the appropriate machinery for such a
,sE, and he makes this explanation with ress I'd
10 his recommendation:
It is fully appreciated that this recomn7anda-
ton IS r'l new. but has been the subject Of
most sel-9ls 6nC exhaustive consideration by
public officials and commissions as well as pri-
vate persons technically well uUalified to sneak
The Industrial Commission, in its final report on
this subject, recommended among other things
The adoption Of a plan quite similar to this 1t
T1 eli B. lnFt- ITO 2 -Er. s,,T-
but the bureau has upon its files abundant and
n many particulars, exhaustive information
which would be Immediately available for the
fse q congress or any committee thereof which
might have under consideration such q meas
Ere
PRESENT SYSTEM DENOUNCED.
Nj. Garfield speaks of the present system Of
tOntrol Of corporations as thoroughly vicious"
and its operations as amounting to anarchy He
odds
Under present industrial conditions. secrecy
and dishonesty in promotion, Overcapitalization,
unfair discrimination by means of transporta-
II fion and other rebates. unfair and predatory
ompe1luon. secrecy Of corporate administra-
lion and misleading or dishonest financial state
lnents are generally recognized as the principal
The immediate work is, hence. not TO prove
the existence OF such evils and difficulties but TO
find possible remedies for them. The remedies
must not be sil1ply 70 destroy existing bad con
'.ary Ie.-ef-Dut they must provide something
better 10 take the place Of what is charged The
Imposition Of severe penalties will not end in
dustrial evils. We must ind and remove their
cause, leaving only the extreme or exceptioDal
gases 10 be dealt with by criminal statutes
The government should secure means for fair
business competition, freedom from unjust dis
friminatjon such publicity Of corporate organI-
patton ard management will disclose real
flnsncial worth and methods, should provide
Jurisdiction broad enough to meet existing con-
iditons- and then should fully protect the per-
fson or corporation obeying the law and prompt
IL punish the TiOlatCr Of the law.
! NJ. Garfield says four remedies have been
Fuggested-sdditionaI State action. delegation
by tie federal government to the States Of
the control of interstate commerce. federal IN
coporation and the federal franchise or license
system 10 Interstate commerce. The first two
suggestions he regards as inpossibl. Of real
ization. Additional state action. he believes
would be inade guate and would be open to
the objections o. the presen tsystem. The
second suggestion is believed 10 he unconstitu-
uoual and Is also open TO The present objec-
rons, TIE fourth or federal license system.
n believes. would be the most practicable
and eqUitable remedy for the evil complained
G
LEGITIMATE BUsINBss NOT MENACED
Speaking OF the investigations conducted bv
me 5areau. Nj Garfield ays that much in
formation las been Withheld as being secrets
of business, bat II the government IS entitled
| 10 the Information the Compulsory feature
Of the statute viii be invoked He adds:
Legitimate business, la,v-resAectino nersons
and corporations have nothing tofear from the
Proposed exercise Of this great governmental
\ power OF inquiry.
i be gives some details OF the pOlicyadopted by
\ h bureau in conducting its work II is nrl-
I h@dly an inquiry into the Industrial and regal
hsaods employed by the agencies eTtaged In
IieTEJats and foreign commerce, and not the
sforcenent Of any law nor the prosecution Of
Persons or corporations alleged 10 be or fond 20
N Violating any law. II facts are found slow-
hg Violations they VIII be reported to the Fesi-
oeat for such consideration and action ray
M appropriate or necessary.
Senator Hepburn. Of Idaho. had long tai
win the President to-day on the subject OF
federal charters for corporations doing an inter
tS'e commerce business The Senator indicated
-a Intention 70 introduce bill after the holiday
.eess p-oytdiug for the incorporation under
1Hilea States laws Of all corporations doing an
\ "Aslstate business. The bill Will provide that
4 "poratlons now IN existence must take out
q Nsersl charters, amd that such corporations as
"T be organized thereafter also shall be in
+ 'fpaated under federal laws. All suca cor
II t"saons viii be under the supervision Of the
4 "Tartment Of Commerce and Labor. through
ae Bureau Of Corpora tions. The bill has not
~ thoroughly I..at1lred yet, but Mr.. Hepburn
j-5s l. have II ready Immediately after the
-'f<fs