The St. Louis Republic., 1904-12-31
Economist Whitney Would For.
bid Engaging in Interstate
Commerce and Productive
Industry.
DECLARES FOR PUBLICITY.
Hut Believes Bureau OF Corpora
tions Is Very Dangerous-Pro-
fessor Adams Speaks on
Taxation of Railways

Chicago, Dec D.-Edward r. Whitney OF
New York declared today before the
American Political Science and Economic
Associations that Congress has the direct
power to put an end to the United States
steel Corporation, the anthracite Goa
pocr' and similar corporations.
In a paper upon governmental Interfer-
enco wi.a Industrial Combinations he
engaged IL interstate commerce to engage
in a productive industry would prohibi;
such "agg nncration."
His paper was read before a Joint ses-
sion OF the two associations. and was fol
lowed by a discussion, in which Professor
] W. jerks Of co'nell and + z. Prtissng
OF Chicago took the lead. Mr.. Whitney
declared in part:
Congress has entire jurisdiction over In
fe-state commerce. and can therefore I'm
pose any conditions not specially prohih-
tied by the Constitution upon corporations
engaging in interstate commerce.
1T has the same broad power 10 eXclOr!e
State corporations from interstate com
merce. except upon It's own t"rms. which
Stete has to exclude rom its territory Il
corporation OF another State.
RESTRICT MEMBERSHIP.
1T. terms may include restrictions up
on the membership Of the corporation 80
as to prevent It's being controlled by any
outside corporation. and It may declare
that no company engaged In interstate
transportation can be engaged :: any pro-
duc;ive industry either directly or indI-
r'etly by lease. stock ownership, bond own
ership or otherwise. thus breaking up such
aggiomerations as the United States Steel
called anthracite coal pool
1T can impose conditions by means Of
a license. as suggested by Commissioner
panies would re gard it preferable 10 retire
from interstate commerce altogether,
each factory selling to jobbers at its own
''The device OF selling company at
tached to each Industrial controlled by IL
through stock ownership would prove in
The demand for publicity should be
granted under proper regulations as to
every corporation great enough to consti-
tute political issue.
II such ccrroration cannot be sue
cessfu! under conditions Of publicity then
u should dissolve into smaller bodies. but
bv publicity Is not meant the kind intend
ed by the Law establishing the Bureau Of
Corporations at Washington.
SHARING SECRETS DANGEROUS.
1T r,ay be more dangerous to the public
10 have the secrets OF great corporations
shared between their directors and dom
inant political organizatio than to have
Effective restriction by graduate tax
alton would raise constitutional questions
not yer 1ully settled.
Congress can probably supplement any
State antitrust legislation by excluding
from interstate commerce any article
made in violation thereof"
Professor Henry c. Adams of the Uni
versity Of Michigan spoke OF Tendencies
in the Law OF Taxation Of Railways" He
said. In part:
The trend in the law Of railroad taxa
tion reets upon the necessity OF applying
different principle of taxation TO the
eurploe value Of railways from that which
is applied to the value OF the physical ele-
menfs which underiie It. or to the value Of
property in general. which Is exposed TO
competition.
When cases which involve the ANALYSIS
OF this surplus value come to the consid-
Grafton Of the courts the courts will he
Obliged: in applying established principles
OF Justice and equity to these newly dis
closed facts. to acknowledge a difference
IN the social and Industrial character Of
the physical and nonphysical values Of
railroad properties ~
QUASIPUBLIC PROPERTY.
1t Hes at least within the possibil,tie.
of the case that the ultimate ANALYST, nj
this nonphysical or surplus value will re-.
eult In the declaration Of a auasipub,,e
property corresponding roughly to the
1ustry 4pioic IN
Should this conception be entertained
oy the courts il would result in a radical
nodircat!on OF the established fiscai sys