New-York tribune., 1905-12-18
URGES FEDERAL CONTROL.
DIR. GARFIELD,S REPORT.
Suggests Insurance Lac By Con-
gress for Test Before Courts.

federal regulation Of corporations doing an m
| terstate business, suggesting federal ncense'
| or charter, with power to examine books ana 70
stop the operations" of any corporations SO
licensed found violating the federal statutes
| He also recommends, In regard to insurance
| laws In order to test its power to control
| insurance companies. that Congress forrnu-
| late law which may be made the basis of a
decision by the Supreme Court. The work OF
| the bureau In furnishing publicity in regard
to business methods is commented on, and the
special report on the beef industries explained
and defended.
In beginning his argument for federal regu-
lation Of corporations MIR. Garfield declares that
he Is convinced that permanent remedy 1or
existing evils be expected until Congress
more fully exercises its power for affirmative
action under the commerce clause Of the Con-
stitution. He says that it is obvious that juris-
diction Of single States as applied to great cor
porations, is futile and even harmful as such
businesses have grown beyond the possibility OF
control by single State The relations OF cor
poradons to transportation companies alone. he
says. furnish a sufficient for bringing
them under feneral regulation.
Mr. Garfield declares that 1t is impossible 10
prevent rebate abuses by railroads by purely
penal regulation, saying, however, that the en-
forcement Of the present law has compelled
some respect for it, which was previously wholly
lacking As regards forms of combination. ne
says that the imposition of a penalty on one
form of such activity simply drives the men IN
1t to seek some other device. His suggestions as
to regulation are:
It may be accomplished either by g. license to
engage in such commerce by a charter
granted by the federal government Under
either form Congress should provide all require
ments necessary to insure publicity and honesty
hac
right of inspection OF the books Of such cor
poratfon and the further right-the most I'M
portant Of ALTO stop the operations or such
corporation If it becomes violator OF the red-
eral statutes all times preserving to the cor
poration and its stockholders the right Of judi
cial appeal against the improper exercise OF ex-
ecutive authority.
Such a law he says, would be no invasion OF
Individual liberty. and would lessen the posi-
bilities Of unfair and dishonest competition
while giving proper protection to individuals
and It would leave to the courts such subjects
as the reasonableness of combination. conspira-
cies in restraint of trade, and monopol1es
The report says that the compilation Of the
insurance laws Of the various States mas oeeh
completed and some special phases OF the Ques-
ton of federal control examined. but that IN
view of certain Supreme Court decisions the
commissioner has not felt warranted In assum-
of investigation. The sugseston fegdrolils ao'ioAA
by Congress is then made.
REPORT ON BEEF INDUSTRIES
In the special report on the beef industries
the reasons previously given for Withholding
certain information are repeated 1t is re-
marked that those criticisms of the report which
tended to disprove any specific statement IN 1t
were based on estimates or taken from Isolated
instances and that in no was any infoTma-
ton thus given that would be Of any real as
sstance in correcting figures had they been
found Inaccurate
The report also discusses the general work of
the bureau It tells of the need Of accurate in
formation on the complex industries of the
country and of the effect which the furnishing
of such information to Congress and to the pub
lio has already had. Mr.. Garfield declares thai
public opinion, when it has such information to
act on will in many cases lead to the correction
of abuses without legislation, and says that In
several instances the victims of abuses have in
formed the bureau that the mere investigation
by it of the facts have led to discontnuance
Of the improper methods and that. from their
individual point of view, great good has areaoy
resulted from the bureaus work
The report follows:
Sir: have the honor to submit the report OF
the Commissioner Of Corporations for tne hscaA
There has been no change in the organic law
under which the bureau was organized. Further
study Of the law, and pracucaI WORK eIuel a1 IL;
confirm the opinions expressed in the frst genera
report Of this bureau as to It's purpose ana &
s15629O OF this amount $11S855 ca has been eH-
85g 10 was reappropriated for the fiscal year 1860
which, together with the regular apPa1pfna1oiS @ n}
aatas 81 IS 40 s'a1ia0is '0F TINS year O s,
preceding year The methods of accounting: dis
cations and responsibility for public properly nave
been elaborated as to show the exact t eosv ot
bureau work, and have made It possible 20 pPSF@ehe @
unnecessary expense. With the beginning OF tle
H1t 9a yeaT yeossbe ihe be Of
lar details of employees from this bureau LOT s 9e-
partlnentaI work. The estimates for the year emo
Ing June So 1867 are $24S7OO, being increase OF
$50 $40 60. to keep pace with the growth OF the
The work of the last year has again emphasized
the advantage of lump sum appropriation II has
been possible to employ men when and where they
needed, and at such salaries as 70 colit1I chfI
efficient men possessed OF special or tecii4cH1
knowledge. ,,,-.a,, WAS the
completion Of the examination OF the subjects hay
ing to do with the the snq Gpuef @ 4 the Inc Organic
act particularly TO the provisions regardlng me
of evidence. number of legal questions indirectly
affecting the work of the bureau nave ee nf the
State and Territorial statutes relating TO industrial
ali antitrust legislation has been completed, and
is practically ready for publication
SPECIAL INVESTIGATIONS.
@ R RRgbshedi asfio6 D9Eoa o 0Fce e
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 between the large pack
ing companles. At the time of the publication of
advsement proceedings against certain packing
companies and their officers for violation or
ehe federal antitrust law. 1t obvious. there
fore that the publication of the information
possessed by the bureau the subject was mex
pedient that time, and accordingly, by dfrec-
ton of the President all the information possessed
bv the bureau on the subject OF such combination
was withheld from publication. Although this fact
was set forth in the published report the failure
TO treat therein of the question OF combination was
the subject OF criticism. further ground Of criu-