The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-12-22

believed DC SeN-l
5ondly subject to all the objections APP
plicable To the present State system.
"(b) Compulsory Federal Incorporation
of interstate commerce companies. THIS
Is probably legally practieable but y IN, IN,
changes byStlic naturalization Of power
4 In The Federal Government, and presents
serious difficulties because of ~ Seeffcct
upon the authority of tho states oyer
such corporations In matters OF taxatan
and local regulation. Any. optional law 81 :
this character would not overcome these
difficulties.
Federal license Or iran ,hi e. Tor ,'ras- M
ticntlc:5 it avoids tic lega! difficulties 4, o.
national Incorporation MS well rs INC
practical onelof Capitalization, OF power ,,'ti,
and gives the national goverhfne,nt aifafa
regulation OF the agencies oil INTERSTATE
and foreign commerce. ;$.
Law Suggested.
~ therefore bcg 10. suggest that Con-
gress be requested TO cona'dersthc ndSis-
ability Of scnaotlng Il law for the leg isli,-
Tive regulation of Interstate anu ~ ior ,e,.sn
commerce under u license or ffiincil lE,,i
which IN general should Prov,uef S ~ -
'ata) r,,c granting OF a Federal fran
rhlsey or license to engage IN interstate
commerce. i,
auircments az to corporate crgatllza ,l ~,
iila nunagemcht q 3 u condition prccedcnt
ID the grant OF such franch or lie ense.
.(c) The requirement. OF sicn ~,
mir, returns &ns may be desired us 2, cor
tl,tion OF the retention Of sucll ir "a
. "tD ,rhc prohibition OF all corporations ~
nnd corporate agencies from IN, ~.
such Federal franchise or license. j
"jc) .rhc full protection Of the era n l,el.,
OF sncii franchise Or license who obey.
the lnws pIlfsa,bl.s tf si,,ts ~ Withdraw
4 s,,ch franchise or license iii case or v.o,
iation@ Of law, with appropriate right 9, O.
,itlicia to Prevent abuse g 20 W.
This bureau under lie Director. % y liz
sccretnf M OF Commerce and Labor, fforl !,
the appropriate machinery 1of me ~
lit is fully appreciated that tins rccp IN
ncnda,.On Is not new. but has neen 4s,e
subject of most serious n,d cxn na i,o.
inissons.as we'll as private persons tefn !,
iiically we'll qualified TO spea X. me IN m
dustriul comnission y, r q nnr
stnilar 10 this. It is neither nece s.,ar +.
nor wise to tempt In this report 70 ~ ,,e
bureau has upon its files abundant and
In, ma NJ pa rticunrs exhaustive infoTrnn-
lion whic,iwouldJbc Immediately ayai,a .ao
t tSr cor u Which might have under sid
5cratiorS such a neasur re. s5s5 q q 3t
General Policy.
The commissioner elaboratcs this sum m.
mary with u detailed report 9, n, ne wor ms
during the period covered BY. tne, d N2sa
ment ss Under8the head o. 20 encral fS OF
ley" lie says In pa IT: -, -,
rations tho commits slonSr Will necessa rlly
acquire knowledge OF business RAJ cts the
publication OF which would be an infringe 81
1872, n, IA mn king public the results
&ofn these invcstigat ions Al fords q means.
through the President. for protecting PHI PHI
Vi 81 ggr r,,ee Is similar the
and reports OF the Comptroller OF I, {, ne
Currency regarding national banks. Ihe Z,
will thus be- pressnted LII, ,do as2wouid az
h ford Ia. any corpora tiollainformhtl Ion which
would injurc the Legitimate business OF "a
and dsdtros ID thrift
&tS.,.Iyhiiels5t tho purpose of Inquiries ana
special Investigations is not 70 discover e.
violations of Federal ii,as
Vii be reported as other Facts; to the
iresdeni. Tor such consdeiati ton and ac-#4
be Or eeehIapy
Ssecrccy and dishonesty In pro motio
Observation-Disclosures. unfair dtscrinlna ton
4 by inca ils ~ trnnsporta ton and Sotnesr re-
bates unfair and predatory compelit on;
e secrecy Of corpora te administration and
misleading dishonest financial state
- h ,e
chief diflculty In. he WAY Of proyld.ing
ample remedies has been the confiict
Il between Federal and state AUTHORITY q 8
&to Jurisdiction overs5lnany OF the acts q
Y great Industrial agencies, ana the ncer-5
.tainty Of the extent OF guint ton exer;
esed to be exercised by the F Fec
both State and lntersta ate commerce
Remedy for Evils.
..fhe immediate work Is. hence, no TO
q prove the existence of such evils and dill
cuities. but TO find posi- bles remedlGs slor
them. Tlic remedies must n9t pc sinlp ply
destruction II ffords only temporary rel ief--
but they must. provide sonnet hing Mn better
Ito take the place OF What 7 Is changed:
end industrial evil s. must find and
remove thcirscause. leaving Sonl 1.-THE, e% \ !.
Etreine or exception nal ca ses TO be dealt
with BY criminal sta tltes;
Tho government should secure m cans
for fair business competition. freedom
+ from unjust DISCRIMINATION, such publicity
#lncnt as will disclose real financial.
and methods :sshouid provide "a Jurisdiction
broad enough 70 meet exis ting conditions ,sid
sa hsn s1aa fuGy RnetsSt s
promptly punish the violation Of the law "a;
brief, the policy Of the bureau y y
the or. m. purposes l1e q
antagonize, the business world !; the imiiIe-
date object OF its inquiries Is the sug-
gestiou OF constructive egislation,t not
tho institution OF criminal prosecutions.
ltpurposes, throug exhaustive 5investig ga
lions Of law and ia g IN to secure conserN;
md T y aXo!d lll cons
Unfair OF dishonest practices. Leg Innate
ting persons and cH ,o
proposed exercise of this, great govern
mental power of inquiry . n Il
The State System.
Concerning tho. State system Of tncor-
porat iop,5 the report ga vs. 'ts
| 1.-THE net result OF this Slate system Is
thoron gh1y vicious. gsIn the bidding OF
State against State for corpora ton rev
rnne, only one Of the numerous interests
involved In corpora te business Is regarded.
Tho rela ton Of the, sorp9'Iation e t,
broad corporation laws, Corporati Ions
themselves are numbered by the foreign
corporation relation which they must
hold toward most Of heir. business Con
slant chnngc and instability Of law Is
inevitable, and nnally, i'll the struggle for
preferences. privilege and 4, dl!scrn,llla,
| nora ion which seeks, and tile State