The Glenwood post., 1905-12-23
CORPORATIONS
ANNUAL REPORT OF coMMIs.
! ~SloNER JAMES r. GARFIELD.
ANSWERS FORMER CRITICS
Trusts Have outgrown Power Of the
States - Recommends Federal Lii
cense or System of Charters.

SSHsS VI SJStSHl OF SndTtcTS.
Washington.-Com of Cor
porations Garfield has submitted his
annual report, as follows:
The total appropriations for the bu-
reau were s156,220. or this amount
$11S,S55.64 has been expended. An un-
expended balance, amounting to $751;
959.4O. was reappropriated for the fis-
cal year 1866, which, together with
the regular appropriations, makes
available for this year total sum of
s217,S79.4O.
THE published portion of this report
dealt chiefly with the question of
prices and the margin of profit in the
81 packing business. In the course of
IEhis investigation the bureau had also
I 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
officers for violation of the federal anti
trust law. 1t was obvious, therefore,
that the publication of the information
kfpossessed by the bureau on the sub
Niect was ineXpedient at that time and,
accordingly, by the direction of the
President, all the information pos
sessed by the bureau on the subject of
such combination was withheld from
publication. Although this fact was set
forth in the published report, the fail
'ure to treat therein of the question of
combination was the subject of criti-
cfsm. A further ground of criti-
cism was the failure of the report to
treat of determinations by means of
private car companies. At the time of
making the report the extent and ma
!ture Of governmental control over
such companies were the subject of
pending litigation, and it would have
been improper to anticipate the decis-
Ion by assuming in advance any juris-
'diction over them.
"A special report on the oil industry
viii shortly be made to the President.
Investigation of the sugar, tobacco.
coal and lumber industries are in prog
reSS.
1T is idle to claim that the railroads
are wholly at fault for rebates, discrim-
nations, and other devices for afford
ing to one shipper advantages over a
competitor. 1t is impossible to prevent
such abuses by purely penal legisla-
ton. This does not mean that the en-
forcement of the antitrust law has not
been beneficial, for it has. Its enforce
ment has compelled some respect for
the law, which, until recently, was
wholly lacking. But so far as effecting
permanent change of the conditions
which that law denounces, but little
has been done. The imposition of a
penalty upon a combination simply
drives the men in that combination to
the formation of another device for ac-
'complishing the same purpose, and this
Sofor the reason that combination is an
industrial necessity, and hence will be
engaged in despite penal legislation.
! by the exercise of the affirmative
power granted under the commerce
clause, Congress can with safety pro-
vide a method by which reasonable
combination may be permitted. This
method mus. be founded upon an act
= of the federal government which will
give to corporations engaged in inter
state and foreign commerce standing
and recognition under Il federal act.
1t may be accomplished either by a Ii
81 cense to engage in such commerce or
by a charter granted by the federal
government. Under either form Con-
gress should provide al requirements
necessary to insure publicity and hon
eSty in promotion, organization, capi-
taliZation and conduct of the corpora
.tion, reserving to the government the
right of inspection of the books of such
corporation and the further right-the
most important of ALTO stop the op-
,erations of such corporation If it be-
comes.a violator of the federal stat
T. ;utes, at all times preserving to the cor
y poration and its stockholders the right
of, judicial appeal against the i'm
p proper. exercise of executive author
fly" ,,,..s.a