The Providence news. (Providence [R.I.]) 1891-1906, 1905-12-18
U. S. COMMERCE
LAW INADEQUATE
Corporation Commissioner Car.
field Prepares Annual Report.
TELLS OF INDUSTRIAL INQUIRY
No Permanent Change Brought About as
Yet Publication Of information About
Beef Trust InerpsaIsnt and Withheld
TELLS OF INDUSTRIAL INQUIRY

Washington. Dec 1s.-The annual report
Of the commissioner OF corporations.
made public today. is i'm part as follows:
"The total appropriations for the bu-
reau were Sl56.29o. OF this amount. $llS,-
S55.64 has been expended. An unexpend-
ed balance amounting TO S32 959.4O was re-
appropriated for the fiscal year 1866.
which together with the regular appro-
priauons, makes available for this year
a total sum of S217S7940.
THE number OF persons employed by
the bureau on June 30. 1895. was "a, an in
crease of p since the preceding year
THE estimates for the year ending June
80, lSO7, are $24s.700 being an increase OF
$5Oh200, 10 keep pace with the growth
OF the bureau.
"The general legal work Of the bureau
was the completion Of the examination of
the subjects having To do with the powers
and duties of the commissioner and the
Interpretation OF the organic act, par
ucularly as TO the provisions regarding
the compulsory attendance OF witnesses
and production Of evidence.
"A number of legal questions indirectly
Affecting the work OF the bureau have
been considered, and further examination
made OF the state and territorial statutes
relating TO Industrial corporations and
their organization. The digest OF all anti
trust legislation has been completed; and
WITHHELD FROM PUBLIC.
The published portion of this report
dealt chiefly with the question Of prices
and the margin OF profit I'm the packing
business. In the course Of this investiga-
ton 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 had
under advisement proceedings against
certain packing companies and their offl-
GERS for violation OF the federal antitrust
law.
"It was obvious, therefore, that the
publication OF the information possessed
by the bureau on the subject was in
expedient at that time. and accordingly,
by the direction OF the president, all the
information possessed by the bureau on
the subject Of such combination was with
held from publication"
The report goes on to specify. the line
OF division between the work OF the bu-
reau and the department Of justice.
Passing on To the oil and steel In
dustries, the report says: The house OF
representatives passed two other resolu-
tons directing inquiries into the oil and
steel industries.
ION both of these subjects the bu-
quirles, and was ready TO take up inn
mediately, in addition to the general
work. the special lines indicated by the
resolutions.
"A special report on the oil industry
will shortly be made 10 the president.
Investigations OF the sugar. tobacco.
coal and lumber industries are in prog
ress.
ABOUT INSURANCE.
THE compilation OF state insurance
laws has been finished and some special
phases of the question OF federal super
vision have been examined, but I'm view
OF the decisions OF the supreme court I
have not felt warranted in trying to as
sumo jurisdiction over Insurance com
panies for the purpose Of investigation.
THE fact that state supervision has
failed 10 prevent great abuses in the man
agement OF some companies does not of
itself Justify federal action.
1T must be shown, first, that insurance
is subject TO federal regulation under the
commerce clause OF the constitution; sec
ond, that federal supervision would be OF
such a character as 10 correct existing
third that such supervision would result
not only I'm greater security 20 policy
holders but would relieve them. through
their companies, of the great and un-
necessary expense Of duplicated inspec-
tions and Investigations by different
states.
Seemingly the most effective way to
settle the question is for congress to so
legislate upon the subject as 10 afford an
opportunity 20 present TO the supreme
court the question whether insurance as
now conducted is Interstate commerce,
and hence subject TO federal regulation.
itA@'AANi. CAN Il = pi~ANii 4 L
The position Of the bureau az the time
Of it's creation was unique It owed its
existence largely to a public feeling aris-
ing from unusual Industrial developments
Public opinion thereon was vigorous. but
confused ana -vaEtr-.
Upon only one point can II be said that
public opinion was fairly clear and unanl-
nous and that point was the desire for
information II was not clearly under
stood to what use this Information should
be put nor, indeed, what subjects IL
should cover: but the cemand for accu-
rate information was fundamentally
sound
Tho policy Of tho bureau has been
framed I'm accordance with this demand.
Its field may be divided unto subjects re-
lating to law on the one hand. and sub
jects relating TO economic Industrial facts
on tho other II must examine and com
pare tho statutes under which these cor
poratlons are doing business with indus
trial and statistical facts.
"The bureau. therefore. has endeavored
not only 20 obtain accurate. reliable in
formation and facts sufficient in number
to be representative. but also 90 draw CON
clusions that shall represent permanent
tendencies rather than individual in
stances
PREVENTIVE MEASURES.
TT Is strongly felt that preventive
ather than remedial means 7 ust be used
In dealing with the entire problem. The
must deal beforehand with
not merely afterward with tho
efftcts Pm order 10 ascertain proper
methods Of prevention IL is necessary 10
know the causes OF Industrial evils. The
work of tho bureau has brought out. 10
an extent not reached before. tho actual
m thods used In certain industries: their
methods of competition. Of economies I'm
production and distribution. OF discriminn-
tipns In distributions and transportation
and also the results ~ such methods I'm
obtaining or tending TO obtain 1nonopolis-
tic control
Its work has shown, I'm the case ~
tho several great Industries already In
or now under investigation,
tho fact that the predominant control on
ioyed by certain great concerns II based
usually upon one or two. or a very few.
single factors. such as the control ~
81 trade marks. Of patent
rights. % raw material. special legisle-
A. a..