Rocky Ford enterprise. (Rocky Ford, Colo.) 1887-1950, 1905-12-22
CORPORATIONS
ANNUAL REPORT OF COMMITS
sioNER JAMES r. GARFIELD.
ANSWERS FORMER CRITICS
Trusts Have outsrown Power OF the
States Recommends Federal Ii
cense or System Of Charters.


on.-Commissioner of Cor
porations Garfield has submitted his
annual report. rs follows:
THE total appropriations for the bu'
reau were Sl5G.22O. or this amount
SiiS $500 has been expended. An I'M
expended balance. amounting to $751;
95s.i0, was reappropriated for the MS
cal year 1866, which. together with
the regular appropriations, makes
available for this year u total sum OF
S2lT ,SI3.iO.
1.-The published portion OF this report
dealt chiefly with the question OF
prices and the margin OF profit In the
packing business. In the course OF
this investigation the bureau had also
obtained much information bearing
upon the question OF combination rs
between the large packing companies.
At the time OF the publication OF the
report the Department OF Justice had
under adviscmcnt proceedings against
certain packing companies and their
officers for violation OF the federal anti
trust law. II was obvious. therefore.
that the publication OF the information
possessed by the bureau on the sub
ject was incxpcdient ut that time. and.
accordingly. by the direction OF the
President, all the Information pos
scsscd by the bureau ON the subject OF
such combination was withheld from
publication. Although this fact was set
forth In the published report. the fall
uro to treat therein OF the question OF
combination was the subject Of criti-
cism. 4 further ground OF criti-
cIsm was the failure OF the report To
treat Of determinations by means OF
private car companies. Al the time OF
making the report the extent and M.
turc OF governmental control over
such companies Were the subject OF
pending litigation. and IL would have
been improper to anticipate tn. d"ciS-
lon by assuming In advance any Juris-
dicticn over them.
"a special report on the oil Industry
vii shortly be- made to the President.
Investigation of the sugar. tobacco.
coal and lumber Industries are In prog
rcRE.
"it IL idle to claim that the railroads
nrc wholly Mt fault for rebates. discrim'
nations. and other devices for afford
Ins To one shipper advantages over
competitor. II In impossible To prevent
such abuses by purely penal lcEisla'
ton. This does not mean that the en-
iorccmcnt Of the antitrust law has not
been beneficial. for II has. Its enforce
m-nt has compelled som. respect Tor
the law. which. until recently. was
wholly lacking. Hut Ro far ns cncctinE
permanent chang" OF the conditions
which that law dcnounccS. but little
haK been done. The Imposition OF IA
penalty upon combination simply
drives the men In that combination tn
the formation Of another device for nc
cnmpilshinE the same purpose. aud this
E...s st haas al Ia
Industrial Necessity. and hcncr will be
engaged In despite penal legislation.
lily the exercise Of the affirmative
power granted under the commerce"
clause. Congress can with safety pro-
vide n method by which REASONABLE"
combination may be permitted. THIS
method must he founded upon an act
Of the federal government which VIII
give to corporations engaged Ia inter
state and foreign commerce standing
and recognition under federal act.
II may he accomplished either by u.
c"nEc to engage in such commerce or
by charter granted by til" federal
government. Under either form Con.
gross should provide nj requirements
necessary to insure publicity and hon
cHty In promotion. organization. CAPT
iaiiEaiion and conduct Of the corpora
lion. Trscrying to the government III"
right II inspection Of I'll" books at such
corporation and the further righi-ihn
most important Of ALTO stop the or'
-ra,ions of such corporation II IT be-
comes u yiolatoT Of the federal stat.
uics. at all times preserving to the cor.
pnraiion and its stockholders the right
Of judicial appeal against the I'M
proper exercise Of executive author.
ity."