Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-11-12
TO REMOVE THE EVILS
Remedial Legislation Regard
. ing Trusts Being Studied.
GATHERING OF DATA
BUREAU OF CORPORATIONS
WORKING ON BROAD LINES.
Penalizing Violations of Law Deemed
Ineffective-No Definite Conclusion
as to Prosecution Reached.

| The idea has gone forth to the effect
that the bureau of corpora tions of the De-
partment of Commerce and Labor since the
election has entered upon crusade against
the great corporate interests OF the coun-
try, trusts they are called. and that
within a short time marvellous develop
ments may be expected along that line.
1t was today stated with authority that
the bureau of corporations is proceeding
exactly on the same lines of investigation
that have occupied it for many months and
that no change in Its proceeding has taken
bplaee since the election. The beef trust is
now under investigation in compliance with
a resolution of Congress, and an effort is
being made to complete the investigation by
the time Congress reassembles. This may
not be possible and the report may not be
ready to send to the President for trans
mission to Congress until after the holidays.
But the investigation is proceeding as de-
liberateiy as it has at any time since 1t was
started.
Remedial Legislation Studied.
Beside that investigation the bureau of
corporations is not specializing it's efforts
on any of the great trusts of the
country. 1t is working along very broad
lines that do not look so much to merely
running down violators of the law by PEN
L
eventually securing legislation of a kind
that will remove the evils of large corpora
tiDns. This is merely in line with modern
thought in the treatment of all violations
of the law. The day when penalties were
looked upon the sole means of main
tanning proper social and business relations
has passed. Much of the best thought of
this generation has been given to remedial
legiSlat on.
The exhaustive study that is being devot-
ed by the bureau of corporations is looking
largely to such remedial legislation in re-
la ton to the trusts. 1t IS looking to legis-
lation of a kind that will make violations
Of law impossible rather than the pursuit
Of vioiators with penalties, 1t has been
found that the penalties will be paid will
fEgly by men who can recoup their losses
from that cause readily and proceed with
the same violations of law. 1t has been
the disregard for fines that has caused
many advocates of antitrust legislation to
suggest that penalties of Imprisonment
only should be imposed with the idea that
men who will readily pay fine will not
care to submit to the disgrace and incon-
venfence of being sent to jail to serve out
their sentences
Evidence as to Beef Trust.
. So far as the Investigation into the af-
fairs of the beef combine is concerned 1t
is stated authority that the bureau .
has not yet determined the question
whether the beef combine is a combina-
ton in violation of the law. Much evil
dence bearing on that question is being
gathered, and it is believed that it will
be possible to determine in a satisfac-
tory way in the near future whether the
beef combine is operating in violation of
the Sherman antitrust law.
The bureau of corporations Is getting to-
gether, in form that will allow ready ref
erences to all it's data, a large amount of
information bearing on all the great cor
porations of the country. This information
Will point to any illegal practices that have
been discovered on the part of the trusts.
1t will be of value in running down any
such yiolati
But 1t cannot be assumed that the opera
tons of all great corporations have been
detrimental to the interests of the public,
1t is declared by men who have devoted
much study in the bureau of corporations
to this class of industrial institutions There
are combinations of the widest proportions
that are looked upon as having been dis
tinctly beneficial in their results. Some of
the great corporations. it is said, have.
through their operations, tended to serve
the public better than have the smaller
corporations from which they have been
formed.
Effect Of Combinations Of Capital.
One of the efforts of the bureau of cor
porations is to determine the extent to
which large combinations of capital and
skill have been beneficial to the public ana
to what extent they have been detrimental.
When it is possible to define the good and
bad qualities of the trusts with greater ac-
curacy than seems possible at this time 1t
is believed that 1t will be possible to sug-
gest with success methods to remedy the
evils without interfering with the desirable
features Of these great combinations.
But the Idea that has gone abroad to the
effect that the bureau of corporations is
preparing for a general onslaught on cor
porations Is, 1t is stated, wholly without
foundation. Nothing is being done by the
bureau that has any tendency to produce
any panicky feeling on the part of trust
managers who are not in open violation
of the law. There is no desire within the
bureau to injure any legitimate business
interest. Whatever Is to be done by the
bureau will be after mature consideration
and no development In the nature of any
rush at the trusts need be expected in
the very near future.