Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-30
NOT A"TRUST BUSTER"
Misccnception Of the Bureau
Of Corporations.
ITS REAL FUNCTIONS
POWERS DEVOTED TO THE GATH
ERING OF INFORMATION.
Unjust Criticism of Action Taken in
Connection With the Publication
OF the Report on Beef Packing.
BY WILLIAM E. CURTIS.


There seems to be an almost universal
hisconcept1on of the work and the duties
OF the bureau of corporations which is a
part OF the Department of Commerce and
LABOR Many people seem to be under the
deiusion that it was intended as a trust
buster" and are dissatisfied because IT
mas been in operation for more than two
years and has not throttled single mo-
nopoly or mashed a single octopus 9th
ers seem to believe that it is an agency to
remedy wrongs and revenge grievances.
and give inside information to those who
own stock or desire to invest in the shares
OF industrial and other corporations. Ger
tain people have. even attempted to use 1t
as an instrument of vengeance to punish
the mana gers of stock companies who have
not dealt fairly by them and promoters who
nave m1sled them into making investments
that have not proved profitable. Many
critics who should know better are getting
uneasy because the bureau has shown no
visible signs of Its influence in the stock
market; and, as they claim, has accom-
plfshed nothing of Importance to the gov
eminent or the people.
Those who have had an opportunity to
observe the transactions of the commits
sloner or corporations and his assistants,
however, Know that the two years that
nave transpired since the organization of
the bureau have been devoted to the most
earnest, serious and comprehensive study
OF the industries Of the United States and
In the preparation of reports concerning
their economic, financial and physical con-
aitlon, as well as collecting and codifying
the laws affecting them that have been en-
acted by Congress and the legislatures of
the several states
Functions Of the Bureau.
The bureau of corporations is not a court
nor prosecuting attorney, nor a grand
jury. It has no legislative, executive or
judicial functions. 1t is simply an agency
Tor acquiring information. and, under the
law authorizing it's establishment, 1t is d.
rected ito make diligent investigation into
the organization. conduct and management
OF the business of any corporation
and to gather such information and data
as Will enable the President of the United
states to make recommendations to Con-
gress, ETC., etc. AS Commissioner Gar
neld expresses 1t: 1T is an arm of the leg
islattve branch of the government charged
with the duty Of obtaining information,
and is placed under the executive branch
OF the government for the purpose of adj
ministratfon and continuity of action; but
has nothing whatever to do with the Judi
c1al branch of the government 1t has no
jurisdiction or authority except to ascer-
tain facts to guide Congress in framing
laws and the President in executing laws
which have already been enacted. If its
reports are to be Of any value at all its in
FesASdtiohs must De proad, thorough and
complete, so as to give Congress and the
public the actual facts and conditions con-
corning the corporations Of the country.
commissioner Garfield says he has al
ready discovered that one of the great diff
ficulties under which our industries are Ia
boring Is too much law. The federal Con-
gress and the various legislatures in the
forty-fve states are always passing laws
to govern and restrict corporations, and II
is very likely that the bureau will be COM
PEELED to recommend the repeal, rather
than the increase. of legislation.
Collecting Information.
There are now about one hundred people
employed In the bureau, sixty Of whom are
In the Washington office, and about forty
special agents. examiners, experts and at
torneys are in the field employed as they
are needed and as long as there is work for
them. being paid according to the value Of
their services. The work Of these special
agents is all confidential, but no detectives
are used, and everything Is done openly
and above board to all the persons inter-
ested. When special agent of the bureau
begins his work he goes first to the off,
Gals OF the corporation he has been in
structed to investigate and obtains from
them all the information they are willing
verify this information from other sources.
not in secret, but openly - although OF
course, the public are not admitted to the
entertainment. There are three classes of
inquiries:
/. Private matters, concerning which in
formation is not necessary to an UNDER
standing of the subject
q Matters which the government, the
stockholders and In a certain measure the
public, have right to know about
g. Certain matters between concerning
which there may be doubt as to the propri-
ETY. or the justice of inquiry. The agent of
decides each case of this kind as 1t comes
UP, after conferences with all the persons
interested.
Mr. Garfield says he has had great
many conferences over lines of inquiry that
were OF doubtful propriety, but has never
yet found a case In which he and the off,
Gals of the corporation interested could
not agree. He has never once been COM
PEELED to invoke the force of the courts, as
provided in the act organizing the bureau.
Data Willingly Given.
''We have never had the slightest diff
Guilty in getting information" said Mr..
Garfield when we want facts we go to
the men who are supposed to know the
most about them, and we have applied to
oil classes-producers, manufacturers, ship
pers transportation companies. middlemen,
wholesalers, retailers and consumers.
Everybody thus far has been willing to
give us the information we have asked for,
without raising the question Of the right
of the government to make such an inyes-
tigatlon into their corporate or individual
affairs and business transactions. Most Of
them have responded promptly and willing
ly; others have been reluctant. but have
shown q reasonable and usually concil-
tatory disposition: white some have shown
a willingness to help us In order to see
what the movement will lead to- reserving
at the same time the privilege of refusal In
the future. We have found no public preju-
dice against the bureau or the law under
which 1t was created. The greatest objec-
ton SO far developed is ON the part OF GER
tain individuals who feel that II IL In the
line of paternalism In our national affairs,
to which they object on principle. No one
has ever refused to show us books or pa
pers, or any documents we have wanted.
Our agents have shown great discretion,
however. We have not been playing to the
gallery Both sides have acted In GOOD
faith. While eDme corporations have con-
tinued TO regard the work OF the bureau az
exper5men<al the ma 5crtty have o1ven m
this heart1ee co- 0peration. We have ~
2 1''|1 8 llI|I|1 y