The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-18
GARFIELD IS FOR
FEDERAL CONTROL
Corporation Commissioner Says
Big Corporations Have Out
grown State Supervision.

Washington, Dec 1S.-James r. Gar
field, commissioner Of corporations, IN:
his annual report to the secretary. or
commerce and labor, says that the time
has come for federal control OF great
Interstate corporations. He says:
f "The years work upon the investl-
cation Of special industries and par
ticular corporations has strengthened
my conviction that no permanent rem
edy for existing industrial evils can be
expected until congress exercises more
fully it's power of affirmative action
under the commerce clause OF the con-
stitution. No fact Of industry is more
obvious than that modern business has
outgrown and wholly t1isregards state
lines, and that the jurisdictions OF sin
gle states, as applied to the operations
Of a great Interstate business, are fu-
tile and even harmful. A close study
Of the methods Of organization and OPP /
Grafton of the greater industrial corpor'
ations, their relation to transportation
companies, both rail and water, their
of their business thruout many states,
and the sale of their commodities thru
out the world proves that they have &C.
tually gone beyond the possibility of
proper supervision or control by the
single state which gave them corporate
existence. Their relation to the trans
portation companies alone is su1l-
cient reason for bringing them under
federal regulation. (,
"The power of congress to regulate
interstate commerce being plenary, that
body may determine to what extent 1t
will first exercise its power
Remedy Suggested.
Mr.. Garfield gives the antitrust law
fNr1f
he adds, it has not effected perma~
nent change. For effecting perma-
nent change, the commissioner briefly
outlines a method in the following =
NBy the exercise of the affirmative
power granted under the commerce
clause congress Van with safety pro
vide a method by which reasonable az
combination may be permitted. Inns
method must be founded upon On act ct
give to corporations engaged in inter i:
state and foreign commerce standing
and recognition under a federal act.
It may be accomplished either by a
license to engage in such commerce or
by charter granted by the federal
government. Under either form con-
gress should provide all requirements
necessary to insure publicity and non
esty in promotlon otga49l4tdht a nore cap,
ton, reserving to the government the
right of inspection of the books OF
snch seorporation and the further right
the most important of alto stop
the operations of such corporation It
it becomes violator OF the federal
statutes, at all times preserving to the
corporation and it's stockholders the
right of judicial appeal against the i'm.
proper exercise Of executive authority
| Insurance Control. ...-"
AS to federal control Of insurance
companies it is suggested. ,,.s.., =.
NSeemingly the most effective way to
settle the question is tor congress 70 so
legislate upon the subject as to afford
preme court the question whether insur-
ance as now conducted is interstate
commerce, and hence subject to federal
regulation. o.. -, l. FL. :. .-x..r
T. 21u 4. - The Beef Industry. ~:
Going back to the beef industry, Com
missioner Garfield takes issue with the
critics Of his special report, saying IN
part: SIT
cat the time Of the publication of
the report, the department Of Justice
had under advisement proceedings
against certain packing companies and
their officers for violation Of the federal
antitrust law. It was obvious, there
fore, that the publication Of the infor-
nation possessed by the bureau Oh the
subject was inexredient 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 withheld from publica'
ton. Altho this fact was set forth in
the published report, the failure to treat
therein of the question of combination
was the subject of criticism. A further
ground of criticism was the failure of
the report to treat Of determinations
by means Of private car companies. AT
the time Of making the report, the ex:
tent and nature Of governmental control
over such companies was the subject OF
pending litigation, and it would have
been improper to anticipate the decision
by assuming in advance any jurisdiction
over them. <.f '- IL a;--E -7
"Other criticisms were directed at the
accuracy Of the figures and conclusions
relating to prices and profits, but only a
few tended to disprove any specific
statement in the report, and those par
ticular criticisms were based upon fig
ures secured by estimates, or taken
from very few isolated instances, an6
hence did not disprove the results stated
in the report, which were based on gen
eral averages obtained from figures
covering the entire industry and the
slaughter of several millions Of animals
In no case was any information thu.
given that would be of real assistance
in correcting figures had they beer
found inaccrrate - ...-f, ~