The Montgomery advertiser., 1905-02-06
SWEETNESS OF HOUSE
CASE OF GARFIELD-LITTLE
 INCORPORATION LAW.
Opponents of Administrations "Trust- Busting" Policy Were Dazed at Rapidity of Action Taken
 in the Matter.

Washington, Feb. 5.-(Special)-
 swiftness and celerity with which tht | House of Representatives can move or | certain occasions has been amply dem
 onstrated in the case of the Garfield
 Littlefield national incorporation law
 and the result has literally dumb l founded the opponents of the trust
 busting" policy of the administration On January 21 Representative Little | field introduced a bill requiring all
 corporations engaged in interstate 1 commerce to make returns and for oth-
 CT purposes" A few days later Com
 missioner Garfield of the Bureau of | Corporations of the Department of
 Commerce and Labor, appeared before the committee and gave his reasons for
 urging the passage of the bill, which was substantially prepared in his bu-
 reau. At his suggestions his remarks l were not steuographically reported.
 A few days later, that Is, on Febru- ary 1, ten days after the bill was first | introduced, without any hearings, with out consideration, almost, the House
 Committee on Judiciary favorably re- ported the bill. No one was heard on
 it except the Commissioner of Corpo-
 rations, in whose hands 1t lodges Tn.
 quisitorial powers.
 DoSil idPAhAby Ol dCllOH UdS nut OIlIy
 dazzled the trusts" but has startled
 and alarmed all corporate interests. 1 Especially is this the case with the
 members of the Association for Maln-
 taining the Rights of Property, which I is composed of owners of the stocks and l bonds of railroad and industrial enter prises. Daniel Davenport, the general
 counsel for this association, speaking of this subject today. gave it as his
 opinion that the House would never
 pass such bill and If 1t did, the Sem 1 ate would stand firm against it.
 This proposition is one of the most drastic pieces of legislation ever seri-
 ously proposed to the American pub
 lie" he said. Tt Is not aimed at the so-called trusts though ostensibly in-
 tended as a regulating measure. It ll directly aimed at the investing public at every investor. large and small, In 1 substantially every corporation in the United States. This bill vests the Bu- reau of Corporations with inquisitorial powers undreamed of even in autocratie Russia. of which we hear so much to- day. It also drawns an Invidious class distinction between individuals, part nerships and corporations engaged in interstate commerce, of which the con | stitutionality may be seriously ques- tionfd That is to say, that under this bill individuals or partnerships are ex. empt but if two or three persons form a stock company and incorporate it un- der the law of any State in the Union, then they will be called upon to reveal [ the innermost secrets of their business ! to Government agents. And what pen , atty Is to be enforced against them If , they do not comply with this law? Why, if the return is not correct, the officer making 1t Is to be punished for per jury and any person refusing to pro- duce the books. papers, contracts and agreements of such corporations at the demands of the Government agents
 shall be fined from $500 to $5,0O0 and on suit being brought by the Attorney General of the United States, the cor poration can be restrained from con tinuing its business. There is in Washington a concern manufacturing paper boxes, some of which are sold in Alexandria. Va. eight miles away. Un- der thls bill, this little concern would be compelled to file with MT. Garfield not only all the details of its capitall- zation, but all it's instructions to its selling agents, all the business rules it applies to its management; in short, every private instruction to its drum mers, operatives or directors-as the bill puts 1t. a full, true and correct copy of any and all rules. regulations and bylaws adopted for the manage ment and control of its business. and the direction of its officers, managing agents and directors. And such a bill was rushed through the Judiciary Com mittee of the House in ten days and without any che interested being given a hearing" R. H. Watkins.