The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1904-12-29

have been proposed to cure the present
evils, and the arguments for and
against the various schemes
The report states that The pres.
ent legal conditions under which cor
porate business is carried on are ex-
tremely unsatisfactory. They admit
| Of and invite, extreme abuse. They
are the result of forced growth under
divergent pressures, and in their pres
emit anomalous state represent the
needs or demands of special interests,
and are not permanent body of law
adapted to provide properly for all the
interests involved. Furthermore, the
State system, applied to interstate
businesses. has developed additional
and peculiar evils; diversity so
great as to amount in operation to an
arohy; an inevitable tendency toward
the lowest level of lax regulation, and
the unequal and disastrous contest be-
tween State Legislatures and CONNER
cial forces of national size and pow
err"
1t continues, saying that no satisfac-
tory reform is to be expected under
the State system" of incorporation.
1t is stated that the federal govern
ment, through the commerce clause Of
the Constitution. supplemented by
certain subsidiary and incidental pow
ers, has power to remedy the existing
evils. This power has been chiefly
used in the past to keep the States
from meddling with inter state COM
MERGE, and little positive legislation
or other action has been produced.
The possible lines of action are said
to be three /, delegation to the
States Of control over Interstate corr
merce; 2, compulsory federal inoor-
poration of inter-s state CON merce COM
panies; 3, federal license or franchise
for inter state commerce. The first
of these is dismissed as probably I'M
constitutional and, moreover, no real
improvement over the present system
The second is said to be legally FEAST
BILE, but involving such radical indus
trial and political changes with regard
to taxation and local regulation as to
be impraoticable. Mr.. Garfield,
therefore pins his faith to the third
proposition and recommends that Con-
gress enact law which in general
should provide as follows:
/, The gaining of federal fran
chise or license to engage in inter
state commerce.
2. The imposition of all necessary
requirements as to corporate organiza-
tion and management as condition
precedent to the grant of such fran
chise or license.
3. The requirement of such re.
ports and returns as may be desired as
condition of the retention of such
franchise or license.
4. The prohibition Of all corpora
tions and corporate agencies from en-
gaging in Interstate and foreign com
merce without such federal franchise
or license.
5. The full protection of the
grantees of such franchise or license
who obey the laws applicable thereto
N 6. The right to refuse or withdraw
such franchise or license in case of
violation of law, with appropriate
right of judicial appeal to prevent
abuse of power by the administrative
Officer
The scheme which Mr.. Garfield
proposes is by no means new. 1t has
in its essential elements been recon-
mended by previous commissions.
But coming as it does now from the
bureau of corporations, and with the
whole country reused as never before
to realization of the necessity Of
some adequate provision for the regu-
lation and control of corporate inter-
ests it can hardly fail to attract the
attention of Congress. Mr.. Garfield
and the force of men under him have
been working faithfully on this sub
ject and the conclusions which they
have come to are worthy of careful
! consideration.