The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1904-12-28
THE NATIONAL eAplTl!L.
THE PROPOSED CORPORATION
LICENSE LAW.
1t Is Not Original With Secretary Gar
field, But Was First Suggested
and Advocated BY w. j.
Bryan.

and Advocated BY w. j.
Bryan.
(F'rom Our Regular Correspondent
Washington, D. c., Dec. 27.-The
president is eyincing the greatest in
terest in the plan Of federal licenses
for corporations engaging in interstate
business which has been suggested to
congress by Commissioner of Corpora
ton Garfield and it is announced that
a bill Incorporating the:commissioner'
recommendation will be framed by an
officer of the department Of justice and
submitted to congress at no distant
date. In substance, it is proposed by
Mr.. Garfield who is a son Of the late
President Garfield, first to procure a
| federal charter, there would arise diff
ficulty when the State attempted to tax
their property as it would b; claimed
that such institutions possessed q ma
| tional and not a State existence. TO
obviate this difficulty he proposes that
creatures of the States, but shall he
compelled to secure a federal license
before engaging in interstate busi-
ness, agreeing, of course, to apide
by certain regulations decreed by con-
gress among them being a prohibition
of watered stock.
Although Mr.. Garfeld's PROPOSE
ton has been treated by the press as Il
new invention, it is by no means orig
inal win him having been first exploit
| ed by William ]. Bryan at a banquet
given by the Civic Federation in
| Chicago somewhere between 1896 and
| 1900. In fact, the Democratic plat
form Of 1900 contains clause strong
ly suggestive Of the proposed plan.
That some form of legislative control
| of corporations is desirable is admit
ted by leading thinkers in congress
| and out of it, but that Mr.. Garfield
| has hit upon a plan which would
| prove expedient, or even constitutions
| al, is seriously questioned by some
who have given this subject the most
| careful study.
The fear Of the several States which
| first adopted the constitution of the
United States, that too, extensive pow
ers might be vested in the national
government, and their apprehension
of centralization sof power resulted
| in filling the federal constitution with
provisions which serve as mighty OBJ
stacles in dealing with the highly or
| ganized and extensive corporate busl-
ness institutions Of the present day.
For instance it is we'll recognized that
the federal constitution is limited to
the special powers granted by the
States. State constitutions on the other
hand, require when construed only
the construer shall ask. Is this not
| prohibited by the constitution? This is
one of the potent reasons why compre-
hensive federal laws are liable to be
pronounced unconstitutional by the
supreme court.
Praiseworthy as appear to be the
presidents objects in seeing to en-
large the powers of the interstate com
merce commission and, now, in rec
ommending federal licenses for inter
state corporations, he is in danger OF
exciting serious opposition in congress
by his method Of asking executive Of
fcers to draft such legislation as he
may recommend. Congress is extreme
Iy jealous of its prerogative as the
legislative power; already mem5Sfs
of congress are beginning to suggest
that the president should content
himself with suggesting desirable leg
islaion and leave them to frame the
bills for carrying his suggestions into
effect. Of course the presidents desire
is to accomplish results without delay.
In support of their positions members
of congress submit that while 1t is
easy to propose legislation and even 10
draft the bills, senators and represel
tatiyes are, after all, responsible toi
the results and it requires careful. con-
sideration and thought to enact I'M
portant legislation, which, when tes'ed
| before the supreme court will not re-
|. feet on the intelligence Of the men
who enacted it.
While the superficial observer may
be inclined to conclude that the eff
fects of Secretary Hay to bring about
another peace conference have failed,
such conclusions being based on Mr..
| Hays letter announcing that it is in
definitely postponed and that the
| president believes that the Hague
council should now take up the active
| work of the propaganda, such is not
the view of Secretary Hay or Of The
president, both Of whom regard the
acquiescence of the powers, includ-
ing Russia and Japan, to the princi-
pie enunciated by the United States
as long step in the right direction.
Acting on the suggestion Of congress
Mr.. Hay suggested that steps should