The daily morning journal and courier., 1907-09-11
H. K. SMITH LIKES
 ID PROBE THE TRUSTS Says Field is Diverse and Full of Practical In
 terest. PEOPLES MISCONCEPTION < 'S-...--.----,ard Oils View of Investi- gation is Hardly Under
 standable.
PEOPLES MISCoNCEPTIoN

Hartford, Sept 1O,-Herbert Knox Smith, United States commissioner of corporations in the department of commerce and labor was interviewed to-day in regard to his word. He said in part;
 Tt is strange that most people have misconception of the work of our de- pertinent They have gained the idea, possibly through sensational repArts, that we are a sort of detac:ive agency for the department of justice, and that 1t iu our business to go about investi- gating commercial enterprises, corpor- ations and so forth, to discover crime or illegal operations. It is not at all. The work of the department is simply one of making thorough investigations of large enterprises, which by their very nature and size have come to be of a public or semi-publlc character. We look into the cost, methods, labor, transportation, and, in fact, all the de- partments of such business, and aim to make a thorough and exhaustive economic report on that enterprise, Of course, If we discover anything illegal about such a business, it is our duty to give the facts in our possession to the president and he turns the information over to the department of justice.
 Don't you find hostility on the part of the enterprises you set out to inves- tigate?"
 "Yery rarely In fact it Is usually the other way There are very few of the large corporations which do not throw open their books to us. In fact we have found assistance from the work of their economists at times. al- though not all of. them have their in- formation prepared satisfactorily" MT. Smith talked some of the effect of the publicity work on business. AL though he was careful not to state names, the reporter gathered that not infrequently in the case of investlga- tions, malefactors or lawbreakers has, ten to correct their practices before the public is given the information gathered by the commission. Appar- ently the Standard oil company was not so ready to yield to public opinion. It will be recalled that in the case be- fore Judge Landis the company prac- tically took the position that notwith- standing the legal prohibition of re- bates, it had prescriptive right to re- ceive them. The contention was made that 1t could make discriminating con- tracts if 1t desired to do so. In fact 1t was contended that this practice had been continued so long that 1t was
 thoroughly established, and had ceased to be discrimination. This fact was mentioned to Commissioner Smith, and 1 he smiled as he acknowledged that not all the corporations looked upon the matter of publicity in the same light. He seemed to think the Standard oil company took peculiar position, and one not altogether understandable.
 As a rule, however" he said "the promoters of large enterprises are coming to realize the nature of our work It IS the aim of the department large enterprises, so that they may | have an intelligent knowledge of the questions involved So large are enter prises like Standard oil. the Interna- ! ltOuHl harvester GOtlDdtlN uIu others that 1t is impossible to understand their nature and the scope and significance | of their operations save through export 1 investigation and publication of all the asoertainable facts concerning them. By means of this publication, moreover l wa hopcto create and men Of great cohlmercial and financial interests have told me that we are helping 10 create a more healthy and q higher standard of business morale. It seems that in- l cvitably, with the increasing higher or 1 ganization in business. clean business morals will come to be mechanical in their operation"
 Commissioner Smith said he was very fond of the work If presents a field so diverse, and of such m intense prac- tical interest that It Is enjoyable II combines a considerable degree of law work but involves a much larger field The bureau of corporations comes into contact with the interstate commerce I commission to q certain extent but the commissions work is quite separate The Interstate commission has to dc with the railroads doing an interstate business. as most of them do and witt the larger steamboat lines conneetins
 with the railroads. The department ol
 commerce and labor takes up the other
 departments relating to commerce and
 industry.