New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-22

an lnIrlngenient of private rights. The method of
Investigations affords means through the Pres
ticuar the method of nrocers is IN .i 10 the
T Tc1i0n ana REPORTS Ct the Controller OF the Cur
cept such as would anoTd 1o ,ny cor ON H.
formation which would ln1ure ire legitimate bust
ness or competitor ana destroy the incentive TOR
Whe The purpcs Of lq nS CURES arc special in
~ iSattois - nor 70 discover violations OF teI-
SholItich tne5 VII be reported as other facts to
may be appropriate N nee. sary
CHucI present industrial conditions, secrecy and
discrimination ny means of trans portation and other
II corporate adnrini5tr5tor and I'isea ling or ais
honest financial statements are s-neraly Iecog
mZtd as the principal evils 1t is adnltted that
the chic: difficulty n the way # providing ample
9o9le 4thrllty as to jurisdiction over many 81 the
acts OF great ntu5lral agencies, and the uncer-
ces Enpaeed in bnt6 Sitg MA in 3Hyrn3er,
The immediate work Is. hence, not - prove The
existence Of such GYMS and difficulties. but to find
net be Simply destroy ,Nistlng bI conditions
more destruction affords o ly ten2Jrary relief
the place Of what is changed. The imposition %
must hG and remoIe her :aise leaving only the
extreme or exceptional cases to be dealt with by
The government should, secure ans. for fair
ination, such publicity of corporate Organization
and management will disclose real financial
broad enough meet existing conditions ard then
ing the Ia" and promptly punish the N0iator Oh
In brief, the policy Of the bureau in the accom-
pishment of the purposes of its creation is to CO.
operate with not antagoni4e the business mes W0rdd;
ton Of constructive legislation, not the institution
RaustiVa inves gSto2s of law and fact to secure
Conservative action and to avoid IL consiqered
dishonest practices. Legitimate business-laW re-
fear from the proposed exercise of this great gov
ernmental power of inquiry.
many OF the existing evils Of commercial conditions
law pec1iiarlV chapactarisc Of the corpoTate form
The pecularities may be summarized as follows:
so aD Legal immortality or PeFma"eH'e OF success
o. Impersonal nature.
(c) Divisiblity of interest by creation Of stock.
Id Limited liability.
(ej Artificial character; existence by act of the
OF these features the divisbility of interest and
limited liability have far reaching eHects on com
Governmental action having created the artificial
characteristics, 1t is logical and necessary that
governmental regulation OF corporations should
he much more Stringent and detailed than the
II alton of business that has resulted from the use
OF the corporate form has produced entities that
can meet the State equal terms and influence
and their PECULIAR privileges they have crossed the
line that divides private from public interests and
R a5S3f 5hs 69PS the
The gre2t, reduction OF personal all responsibility
bty Of stock interests. and the separation of the
with and control of the Instruments of industry.
has left large gap to be filled by government
various important interests which must have the
supervision and intervention Of the State for the
q To protect property rights in corporations
BY reason Of lack Of nformatiof1 Or power.
() To protect those dealing with corporations
employees. creditors consumers.
(c) To protest the public from the abuse of great
economic power coupled with little personal re-
The economic powers of the government and OF
Dnh fTiOaTS are Cl<ed nv
publicity and responsibility to the voters, while the
often governmental in their size and scope, have
no such publicity or responsibility
pressure of great nm and nsgCai powers
ends.
PRESENT SYSTEM OF INCORPORATION BY
STATES.
Investigation of the State corporation laws has
not been completed but enough facts have been
50 as to tbs system ali
the corporations of to-day are the creatures Of the
for ali practicaI purposes it is prop to say that
on under 66t2o the st aStg system 7 country
vicious In the bidding of State against State for
terests invQlved in corporate business is regarded
is almost wholly lost sight Of in broad CORPORA;
by the foreign corporation" relation which they
must hold toward most of their business; Constant
change and instability of law is inevitable; and
finally in the struggle for preferences. privileges
the corporation which seeks and the State which
should Wlthnoluare ui1e4ua4ly OaAsiCeI I "u Hpl
placed the pressure of forces that national in
their power.
ANTITRUST LAWS.
A careful compilation and tabular summary has
been made of ali the federal and State antitrust
legislation The word ANTITRUST" in this connec-
iation can be divided into two classes Of subject
matter, the which is aimed at the prohibition
properly ANTITRUST" and the other, which
unfair competition, and which has no necessary
connection with combinations. .
lation is the prevention Of monopoly and the main
tenance of condition Of oGmRet ton with few
marked exceptions) has been singularly futile 1t
to two facts-(a) that it is attempt stop the
operation of strictly economic law by statutory
Of competition by prohibiting all combination,
Apparently the only exceptions to this concIusiioh
lie in the case of public service corporations whlch
and exercise powers not granted to the ordinary |
corporation or individual
1 UNFAIR COMPETITION LAWS.
The second class Of legislation, usually part
nection with combinations trusts. is that which /
prohibits rebates. determinations and unfair com
different principle and is fundamentally correct |
SUCH h or the maintenance Of competition but
regulating the methods of competlton ~ reGoS
and It's purposes are to make certain that comblna-
ton IS reached only through just fair and proper
Recognizing that the tendency 10 conlOsa me
cannot be stopped by statute its object Is 10 see
that this process shall be atenaeG WIN as rct
injustice as may be, and TO thls eA'e'I' Is oo''e
in theory: -,,., so.,o 30 s+o+,tas
It must be remembered that the law Is mercy In
the final analysis a crystazatio OF pubic opinion;
from pubic opinion will be ineffective, The use
of the forces must therefore proceed tosetheF'
POWERS OF CONGRESS OVER CORPORATE
BUSINESS