The Dolores star., 1905-12-22
co RPO ORATIONS
ANNUAL REPORT OF coMmIs.
sioMER JAMES r. GARFIELD.
ANSWERS FORMER CRITICS
Trusts Have outsrown Power Of the
States - Recommends Federal L.
eense or System Of Charters.

l
eense or System Of Charters.
| Neutrality-suspicious. of Cor
| porations Garfield has submitted his
annual report. as follows:
The total appropriations for the bu-
reau were $156.220. OF this amount
$11S,S55.64 has been expended. An un-
] expended balance, amounting to $751;
959.40, was reappropriated for the fis-
cal year 1866. which. together with
the regular appropriations, makes
available for this year total sum Of
$217.S79.4O.
| THE published portion of this report
| dealt chiefly with the question Of
prices and the margin of profit in the
| packing business. In the course of
this investigation the bureau had also
obtained much information bearing
upon the question Of combination as
between the large packing companies.
AT the time OF the publication OF the
report the Department of Justice had
under advisement proceedings against
certain packing companies and their
officers for violation of the federal anti
trust law. 1t was obvious, therefore,
that the publication of the information
possessed by the bureau on the sub
ject was inexpedient at that time, and,
accordingly, by the direction of the
President, all the Information pos
sessed by the bureau on the subject of
such combination was withheld from
publication. Although this fact was set
forth in the published report, the fail
ure to treat therein of the question Of
combination was the subject of criti-
cism. A further ground of criti-
cism was the failure of the report to
80 <xp xt,,, T. re
private car companies. At the time of
making the report the extent and ma
iture Of governmental control over
such companies were the subject of
pending litigation, and 1t would have
been improper to anticipate the decis-
ion by assuming in advance any juris-
dicticn over them.
"A special report on the oil industry
will shortly be made to the President.
Investigation of the sugar, tobacco,
coal and lumber industries are in prog
ress.
1T is idle to claim that the railroads
are wholly at fault for rebates, discrim-
nations, and other devices for afford
ing to one shipper advantages over a
competitor. 1t is impossible to prevent
such abuses by purely penal legisla-
tiOn. This does not mean that the en-
forcement of the antitrust law has not
been beneficial, for it has. Its enforce
,ment has compelled some respect for
the law. which, until recently, was
wholly lacking. But SO far as effecting
a permanent change of the conditions
which that law denounces, but little
has been done. The imposition of
penalty upon a combination simply
hrives the men in that combination to
R<vr - a. Co.,
,complishing the same purpose, and this
for the reason that combination is an
industrial necessity, and hence will be
engaged in despite penal legislation.
f! by the exercise of the affirmative
power granted under the commerce
clause, Congress can with safety pro-
vide a method by which reasonable
combination may be permitted. This
method mus. be founded upon an act
of the federal government which will
give to corporations engaged in inter-
state and foreign commerce standing
and recognition under federal act.
1t may be accomplished either by IL
cense to engage in such commerce OF
by a charter granted by the federal
government. Under either form Con-
gress should provide al requirement.
necessary to insure publicity and hon
esty in promotion, organization, capi'
talization and conduct of the corpora
tion, reserving to the government the
right of inspection of the books of such
corporation and the further right-the
most important of ALTO stop the OPP
erations of such corporation IL it be-
comes "a violator of the federal stat
utes, at all times preserving to the cor
iporation and its stockholders the right
of judicial appeal against the I'M
proper exercise of executive author
ity."