The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-01-16
Voice of
the People.
Federal Control Of Corporations.

Federal Control of Corporations.
Editor Times Dispatch:
Reterence was made In ",The OUTLOOK"
q, december Goth, 1906, under the head,
to the annual report OF the Hon. Jaiiies
x. Garfield, commissioner OF the Bureau
OF Corporations, in which ".rho Outlook"
SAYS says Inc h',s commissioners 'renews with
Iorce MS recommendation made n year
ago Tor Federal control OF corporations
This recommendation, the article goes
on to say. The Outlook has often stated
that proper control is no longer possible
porate existence. AS Mr.. Garfield says,
the relation OF our large shippers, name
iy, the greater Industrial corporations,
alone be a sufficient reason for bringing
them under Federal regulations" ~.
Furthermore, Tho Outlook" says: by
the exercise Of the affirmative power
the Constitution. Congress can provide
der governmental control. This may be
gage In such, commerce or by charter
granted by the Federal government"
In The Outlook" of Saturday, Jan.
uary 18th, 1905, under the heading Of
Is published q letter from the Hon. w.
T: Potter. a Justice of tho Supreme Court
Of pennsylvan!n. dissenting from the con.
."The outlook" which coming from such
nigh authority, would, think, interest
your readers. and / therefore give the full
text Of Judge Potter's letter as follows:
~ with the views of .The Outlook that
IT only emphasizes an occasional point
OF difference: In the last issue you re-
peat statement which, In my Judgment,
ought not to pass without protest. You
say, referring to Federal control of cor
porations. proper control is no longer
r possinle by the single State which creates
.G cnnst'an existence l beg leave to
statsmeilr, and T--subin.t that 1t has no
foundation in fact. On the. contrary. the
S S which creates corporate existence
ma tne power OF complete control over
potter power over the cay which grows
INFO shape under his hands, and which
taxes Wa the, form that he gives to 1T.
that ePbfipSra II. can do nothing except
i itea 70 20 DO It Is in this respect Inn
lted-like the power of the Federal Gov
e eha a,en IT can do that only which its
ton lon gives It the right to do
i.iainiy. then, the remedy for wrongful
action by corporations. lies in limiting
eheir powers. when they are being Great
by the same authority which called them
into being.
Does anyone doubt for moment the
power power, OF the State OF New York to gu
ne Insurance. companies chartered by
that State? Certainly not. Insurance
companies can be controlled by The State
20 Just the same degree and with the
The only trouble heretofore is that the
State has not attOnpted to discharge
this duty. But her ability to do it can
not be questioned.
"Npffbar
protect Its people against the inroads of
loose or unsafe CORPORATIONS, organized
IN other States be questioned. Under the
prfnolhe OF comfy between the States,
grown up Of permitting practically free
and unrestrained access to the people Of
.arious Seates by corpor,tt;ols of otheY
states sta But this principle has been car
again the power to protect themselves
Is ample. and needs but TO be called into
play. The American people are entirely
capable of protecting themselves In ali
munity.
The real danger: in any attempt at
control OF corporations by, the. Federal
government. is that It would be made
the thsas States from guarding their own In
license, the dangerous and predatory con-
Germs Ger, would claim the right to invade
protests or sound requirements of the
states thaE misht desire t, r. .,r..t Their
people. We. are not infants We do
not REQUIRE the protection Of any bureau
at Washington. In fact. supervision by
the National Government would b. a
farce. No matter how good the intent
might be; 1t would be impossible to SUI
pervise the business interests OF this
bureau Of clerks at the National Capitol
Such an attempt would be unwise and
un;A american We believe In home rule
and the right and duty Of self-govern-
sorry day indeed when the people of
any State In the Union acknowledge their
INABILITY to protect themselves from the
ns ana c1eafed practices Of cor
own State. or that of any other State
of the Union.
so Just give the people a chance. Do not
attempt to take from them the power o.
control, by centrallzing it at Washington,
and there will be no difficulty in properly
protecting every right and 10 preventing
befall us, as a nation. than the formation
Of the habit Of looking to Washington for
help instead Of helping ourselves at
home The curse of Russia is its system
OF Bureaucracy and Capitalization. Let
US not turn our faces toward a system
which Russia is struggling to throw off
urge, rather. the assumption of thorough
and reasonable coh.rji by each State
over the corporation which 1t creates,
and the exercise OF tho right by each
State to exclude from Its borders such
corporations. created by iother States. as
do not comply with Its own reasonable
Its own citizens In other words, let each
State require from ,hG> stranger within
Its gates, the observance of the same
rules and regulations which 1t IMPOSES
upon It's own people for their own good
Were this done there would be no rea-
sonable complaint
(Slgned) .sW. p. POTTER,
The Southern members OF Congress
ought to think carefully of the ultimate
effect OF such Federal legislation before
giving 1t their support.
Yours very truly,
Richmond. Va