New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-22
STOCK MARKET BREAKS
val Street Hears Rumor of Presi-
dent and Standard Oil Investigation.

The stock market broke sharply on the publica-
ton or the summary from Washington Of the re-
pert Of the Commissioner OF Corporations. recon-
mendlng federal franchise or license for corpora
lions engaged in interstate commerce. which was
soon followed by rumor that the President pur-
posed ordering special investigation of the Stand
ard OIL Company and two other large cor
porations. Railroad shares we'll industrials
declined. some Of the maximum losses from the
highest level Of the day in the latter class being
IA per cent for Consolidated Gas, 3% for Amalga-
mated Copper. 3Ss for American Sugar Refining.
rs for Peoples Gas, IL for United States Steel COM
mon and 2i2 for Steel preferred.
The principal selling was apparently done by the
bear party, who made a successful raid last
week. and the decline much stock which had
been bought since the last break disodged.
The market rallied decidedly in the late trading,
the Street coming TO the conclusion that little real
danger threatened the corporation a result OF
Commissioner Garfelds recommend ton. In the
curb market Standard Oil continued unchanged at
6Ss15
Prominent corporation lawyers who seen
yesterday afternoon inclined to disagree with
Commissioner Garfield In his view that the eff
fective method OF obtaining government control OF
corporations engaged in Interstate commerce would
be by placing them under the operation of a fed
eral franchise license. James B. Dill said that
he still stood for national corporations. and did not
favor an attempted national control of State cor
porations. Viii, h in his judgment would combine
tho evils which the opponents OF a--National al
asserted would result from national control and the
acknowledged existing evils OF State corporations
Samuel Untermyer said:
All fair minded men must admit that the situation
is dcporable The several States of the Union have
been forced 70 compete with one another in laXtty
of legislation for the regulation of corporations
Even the judiciary of STATES that are ambitious for
the patronage have been drawn into the competi-
called scandaous The pubic is being grad9aliy
robbed of every security. and a premium is put
upon fraudulent practices.
It is very easy to say. as is the fact that these
there they have a rigid. workable consistent cor
porauon law which is model of justice to capital
the work Of reform We in this country are con;
the decisions of tho United States Supreme Court.
If the question of States rights could be eliminated
for Great Britain; but that can be done only by
e6nstt9tional amendmSnt; SO long as certain OF
porattons that have no business within their bor-
from the just restrictions imposed by the laws Of
the States in which their businesses are located
corporate existence. the remedy will remain inef-
But something may still be accomplished by
Congress in the way of regulation of corporations
term has, however. been very much limited by the
decision of the United States Supreme Court in the
The there held that the Sugar Trust was not
engaged in interstate commerce within the meaning
The decision in that case has been somewhat re-
is some hope that the court win give to that term
an elastic meaning thai would bring the bulk Of hs
Congress- as they should
I do not agree with Mr.. Garfield that his remedy
of license franchise from the federal govern
rnent Is practical effective means of restraint,
1t will be overcome by organizing sub-companies in
the States In which the corporation does business
The only effective remedy is one which abso-
lutely takes away from the States the right to
grant charters to corporations that are engaged
in interstate commerce and places this power in
the hands Of the federal government While the
right to do this may be deba table. believe it
would be within the powers of Congress. under
the Constitution.
"A who is thoroughly familiar with the law
in these matters and with the movements OF Con-
gress" was quoted by OF the Wall Street news
bureaus making these points:
First-There is no probability of Congress taking
action on this matter at the present session.
Second-To give corporations doing an interstate
business federal charters would require an amend
ment to the Constitution, and that would require
several years. Third-The State governments would
bitterly oppose such proposition. FOurth-There
is a law already requiring the corporations to
make reports their Individual State govern
ments. and IT is doubted seriously that any amend
ment to that law is likely to be made