The state herald., 1905-12-22
CORPORATIONS.
ANNUAL REPORT OF coMmIs-
sioNER JAMES r. GARFIELD.
ANSWERS FORMER CRITICS
Trusts Have outsrown Power Of the
States Recommends Federal L.
eense or System Of Charters.

Trusts Have outgrown Power OF the
States Recommends Federal IL
eense or System Of Charters.
Washington.-Comm of Cor
porations Garfield has submitted his
annual report, as follows:
1.-THE total appropriations for the bu-
reau were $156,22O. OF this amount
$11S,S5564 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
$217S79.4O.
1.-THE published portion Of this report
dealt chiefly with the question oil
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 mad
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 fall
ure to treat therein of the question OF
combination was the subject of criu-
cism. A further ground of criu-
cism was the failure of the report to
/ treat of determinations by means OF
private car companies. At the time of
| making the report the extent and ma
| ture 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
viii shortly be made to the President.
Investigation of the sugar, tobacco.
coal and lumber industries are in prog
ress.
'.It 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
competitor. 1t is impossible to prevent
such abuses by purely penal legisla-
| ton. This does not mean that the en-
forcement of the antitrust law has not
been beneficial, for 1t has. Its enforce
ment has compelled some respect for
the law, which, until recently, was
wholly lacking. But so far as effecting
permanent change Of the conditions
which that law denounces, but little
has been done. The imposition of a
| penalty upon combination simply
drives the men in that combination TO
the formation of another device for ac-
complishing the same purpose, and this
for the reason that combination is an
Industrial necessity, and hence will be
engaged in despite penal legislation.
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 must 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 Il federal act.
II may be accomplished either by a II.
cense to engage In such commerce or
by charter granted by the federal
government. Under either form Con.
gress should provide al requirements
necessary to insure publicity and hon.
esty In promotion. organization. capt
tallzatlon and conduct Of the corpora
tiOn. rescrving to the government the
right OF inspection Of the books OF such
corporation and the further riGht-the
most important OF ALTO stop the op,
crations Of such corporation II II be
comes violator of the federal stat.
utes, at all times preserving TO the cor.
poratlon and it's stockholders the right
Of judicial appeal against the i'm
proper exercise OF executive author
ity.'