The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-18
GARFIELD INSISTS.
That His Report showing A1eagerness
of Packers Profits Is Correct.

Washington, Dec. 18.-The annual
report of the commissioner of corpo-
rations, Mr.. James R. Garfield, has
been made public. Mr. Garfield de-
tends his recent report on the beef
trust, declaring that his figures show
ing the meagerness of packers profits
have not been disprOven. THE in
VestigatiOn, says Mr.. Garfield, de
veIoped the line of division between
the work of the department of justice
and the bureau. The bureau. in OBJ
tanning facts upon which the president
may make accommodation to con-
gress, necessarily will obtain facts
which might require prosecutions I'M
der the antitrust law. AS stated in
my former report, such facts must be
reported to the president for such ac
| ton as he may deem necessary to
port them to the attorney general
The department of justice and the
bureau often deal with the same ques-
TONS but for different purposes and
in different ways. The department of
justice has to do with prosecutions
for violation of lawsuits bureau OBJ
tains facts for congressional consider
alton; the lines of work may at times
cross and overlap, but they do not
conflict. If prosecutions are impend-
ing or Intended. the bureau would of
course not take such action as would
interfere Herewith. In this particu
lar investigation cases were pending
in the courts under the direction of
the department Of justice; hence it
was not proper that the bureau should
use its powers in such manner as
would embarrass tn department of
justice in its action relating to conlbi-
nations or other violations of law
Mr.. Garfield says that a special re-
port on the oil industry will shortly be
made to the president. Investigators
of the sugar, tobacco, coal and lumber
Industries are in progress.
1.-The compilation of state insurance
laws has been finished says Mr.. Car
field, and some special phases Of the
question of federal supervision have
been examined, but in view of the decis-
ions of the supreme court have not felt
warranted in trying to assume jurisdie-
ton over insurance companies for the
purpose of investigation The fact that
state supervision has failed to prevent
great abuses in the management of some
companies does not Of itself Justify fed
eral action. 1t must be shown, first,
that insurance Is subject to federal reg
ulation under the commerce clause of
the constitution; second, that federal
supervision would be Of such a charac-
ter as to correct existing abuses and
prevent future ones, and, third, that
such supervision would result not only
in greater security to policyholders, but
would relieve them, through their COM
panies, of the great and unnecessary ex-
penSe of duplicated inspections and in
Vestigations by different states. Seem
ingiy the most effective way to settle the
question is for congress to so legislate
upon the subject as to afford an Oppor-
tunity to present to the supreme court
the question whether insurance as now
conducted Is interstate commerce, and
hence subject to federal legislation.
THE years work upon the investfga-
ton of special industries and particular
corporations has strengthened my con-
viction that no permanent remedy for
existing Industrial evils can be expected
until congress exercises more fully its
power of affirmative action under the
commerce clause of the constitution. No
fact of Industry is more obvious than
that modern business has outgroWn and
wholly disregards state lines. and that
the jurisdictions of single states, as ap-
piled to the operations Of a great inter
state business, are futile and even harm
ful. A close study Of the methods of
organization and operation of the great
er industrial corporations, their relation
to transportation companies, both rail
and water, their methods of competition,
the extension of their business through
out many states, and the sale of their
commodities throughout the world,
proves that they have actually gone be-
yond the possibility of proper supervis-
ion or control by the single state which
gave them corporate existence. Their
relation to the transportation companies
alone is a sufficient reason for bringing
them under federal regulation.
Lutes can get your photos out for