Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-01-04
NO MENACE IN VIEW
Operations of the New Bureau
Of Corporations.
NOW ENGAGED IN STUDY
INVESTIGATING EFFECT OF COM
BINATIoNs ON PRICES.
Causes That Allow Domes'
tic Products to Be Sold Abroad
Cheaper Than in This Country.

No additional legislation for the bureau
of corporations of the Department of Com
merce and Labor will be recommended by
the department during the present Congress
nor until a test of the law under which the
bureau is operating has been made and 1t Is
found wanting.
When the law was passed authorizing the
establishment of the bureau Of corporations,
with the powers of the interstate commerce
commission, so far as applicable to the
work Of the bureau, there were very many
men in Congress who looked with great
doubt upon the power of the bureau to ac-
complish the objects for which 1t was Great
ed. It was known that in some respects the
interstate commerce law was regarded as
unequal to the task of accomplishing every
thing that the commission desired. and 1t
was supposed that in the application of that
law framed to regulate transportation COM
panies, to corporations of an industrial ma
ture. there would be found defects that
might almost nullify its force.
Work Of the Bureau.
Ever since the establishment Of the bu-
reau Of corporations the law under which 1t
was empowered to act has been more or
less a subject for consideration with
view to forming an opinion, prior to its APP
operation. While no absolutely satisfactory
conclusion ON that subject can be arrived at
prior to the time when it will be practically
tested yet the opinion prevails that 1t Will
serve the purposes of the bureau in per-
hitting 1t to obtain, by the summoning of
witnesses and forcing corporations to open
their books, all the information that will be
wanted, even should objection be raised.
The affairs of the bureau are still in such
shape that test of the law will probably
not be made for many months to come.
The bureau was given force which has
made 1t possible to employ only twenty men
on the work Of compiling and classifying
Information on all subjects affecting its
future course.
Prices Of Domestic Products.
Beside a study Of the various laws affect
ing the work of the bureau particular at
tention has been directed to study of the
effect of Industrial combinations upon the
prices OF the commodities sold by such COM
binations. the effect Of tariff duties upon
the prices of commodities subject to such
duties and the reasons for the difference. If
any exists, between the domestic and for
eign prices of commodities manufactured
by the protected industrial combinations of
this country.
This study, now In progress, is looked
upon as going to the very root of the entire
Industrial problem so far as the practical
"Oih VI tic eau Is COICtTUeU. Inc OlnSr
studies relate to an understanding of state
and national laws and upon such cOmbina
tons to show what effect the law now ac-
tually has, In view of decisions, in the regu-
lation of corporations.
Only after a most exhaustive investigation
will 1t be possible to ascertain the exact
relation between prices in this country and
abroad of articles manufactured here.
Even should 1t be shown that in some cases
articles have been sold abroad cheaper
than here such fact might not be of para
mount Importance.
The Significant Thing.
The significant thing will be to show that
goods manufactured here can regularly,
and with a fair profit be sold in foreign
countries at lower rates than those charged
here. All such transactions will. after the
facts have been ascertained, be subject to
discussion as to the real purpose of the
difference in price and its practical effect
on the purchasers here.
The effect of industrial combinations upon
the prices of their products Is also a matter
for the most thorough investigation before
conclusions can be reached of sufficient i'm
portance to base any action by the bureau
or for the suggestion of remedial legisla-
ton. That 10 one Of the things on which
the experts of the bureau are now engaged.
In the conduct of this study up to the
present time the bureau has not called
upon any corporation for specific informa-
ton on the subject. Nothing has occurred
to indicate that corporations will resist the
giving of any information the bureau may
consider necessary in the prosecution of its
work. 1t will probably be many months
before the bureau has its work in form
that will make 1t desirable to approach
the corporations with lists of questions to
secure additional data.