Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1905-05-08
SEVERAL OPINIONS BALL SEASONOPENED
As TO COURSE OF GOVERNMENT
TOWARD CORPORATIONS.


Supervision. Several Newspaper
Views on the Most Important Pub
lie Que StiOn now Be fore the Public.
Addressing the Traffic Club in Pitts
burg a short time ago. Judge Peter :.
Grosscup expressed the belief that
corporations were with us to stay. This
opinion was based upon the reason that
for many other purposes it is necessary
and for many other purposes it is con-
venient to handle capital in large masses,
and the corporation is the best agency
for both the inassing and the handling
of the capital for these purposes. He
pointed out that socialism was the only
alternative method, and as socialism has
yet to prove itself it is practically true
that "the corporation is civilizations sole
and only way Of welding large masses OF
capital" TO the question, How control
the corporations? He answered: Take
the corporation at once and forever ont
of the list of suspects. Put the corpora
ton, as national banks and trust com
panies are put, under the supervision
and control of the law. Make it impos-
sible to capitalize corporations at figures
that can have no purpose other than
that OF artificial and Temporary initiation
an initiation that on collapse leaves the
victims ho ding the bag"
The Oh cago Chronicle is in doubt as
to the efficacy OF Judge Grosscup's
remedy in view of his statement that
corporate proprietorship comprises nearly
one.third Of the country's wealth
"The,e is certainly room for doubt wheth'
er government supervision OF the man
agement of so vast an amount OF active
capital can be made effective. Then
there is question of jurisdiction. Near
ly all corporations are organized under
state laws. Are they to be supervised by
the general government or by the severa
state governments? If by the former
how lie it to get jurisdiction except in the
case Of corporations engaged in interstate
or foreign commerce? If by the latter,
how are all the states to be in1uced tC
adopt an effective system? II they shoulC
all agree to act along the same lines
every corporation would be subject tc
supervision under the laws of every state
to which it extended its business" The
Hartford Times points out one impor.
tant consideration which must be borne
in mind. The first is that the success ol
failure OF a corporation must ever remain
dependent chiefly upon the intellect anC
the pluck of the individuals who are en-
trusted with the direction OF it's affairs
All this talk about government super
vision is we'll enough provided we do moi
get the idea into our heads that govern
ment' can supply the brains necessary te
run our corporations for us. Never be-
fore were there better opportunities fol
men who can save up little money t(
invest it where it will bring them large
returns. The great ma jority OF all oul
corporations are safely and conserya
lively managed, and will continue to be
so managed whether there is any further
extension OF government supervision o.
not, while the ownership Of these corpor
ations is extending among the people al
the time.'
Combinations that fail to do so because
OF inward malformation rather than out
ward assault, says the Boston Transcript
"Leave the trust situation to the opera
tion of the laws of commerce and thei
operation will result in the survival o
the combination that is fttest, that is
the one that is capitalized ne Arrest to tn,
reasonable value of assests and good Will
Violent efforts to dam a commercial
development have usually resulted in th'
undermining of the dam. This is nov
so clearly recognized that tn deman,
for legislation is gradually being restrict
ed to projects for regulation, the ex
: tension Of the methods by whi,l
simple corporations or now supervised
This demand is perfectly conssten
with the proceedings now in progi es'
looking to prosecution of those trusts
which have sought to override the law OF
to grasp at monopoly of commod ties o
prime necessity" The cure for monop
oily suggested by the Philadelphia Rec
ord is the removal of the protection
which fosters it. "Overcapitaliza.io ion il
a vice of which the Judge can not speal
too strongly. But the harm it does il
mainly to the investor. and the marke
soon fixes the value of securities There
is no guarantee that the federal contro
which he urges would prevent it.
most of the states make no effort to pre-
vent it, and many OF them encourage it
what ground have we to hope that con
gress would suppress it? Much of the
evil of overcapitalized corporations il
due to the creation of companies to dc
business in other states than those which
created them, and for this the Judge srg
gests no remedy, though the extension
of the powers OF corporations is in great
measure the work OF the judiciary"