River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1907-12-05
Investing Public Should
Be Amply Safeguarded.


1.-THE congress has the power to charter
corporations to engage in interstate and
foreign commerce, and a general law can
be enacted under the provisions of which
existing corporations could take out fed
eral charters and new federal corpora
tions could be created. An essential pro-
vision of such a law should be method
of predetermining by some federal board
or commission whether the applicant for
a federal charter was an association or
combination within the restrictions of the
federal law. Provision should also be
made for complete publicity in all matters
affecting the public and complete protec-
ton to the investing public and the share
holders in the matter of issuing corporate
securities. If an incorporation law is not
deemed advisable, a license act for big
interstate corporations might be enacted;
or a combination of the two might be
tried. The supervision established might
be analogous to that now exercised over
national banks. At least, the antitrust
act should be supplemented by specific
prohibitions of the methods which ex-
perience has shown have been of most
service in enabling monopolistic combina-
lions to crush out competition. The real
owners of a corporation should be COM
PEELED to do business in their own name.
The right to hold stock in other corpora
tions should hereafter be denied to inter-
state corporations, unless on approval by
the proper government officials, and
prerequisite to such approval should be
the listing with the government of all
owners and stockholders, both by the
corporation owning such stock and by
the corporations in which such stock is
owned.
ITO confer upon the national govern
ment, in connection with the amendment
/ advocate in the antitrust law power of
supervision over big business concerns
engaged in interstate commerce, would
benefit them as it has benefited the ma
tional banks. In the recent business
crisis it is noteworthy that the institu-
tons which failed were institutions
which were not under the supervision and
control of the national government
Those which were under national con-
troll stood the test.
National control of the kind above adj
vocated wohld be toSthe benefit of every
wellmanaged railway. From the stand
point of the public there is need for adj
ditional tracks, additional terminals and
improvements in the actual handling of
the railroads, and all this as rapidly as
possible. Ample, safe, and speedy trans
portation facilities are even more neces-
Sary than cheap transportation. There
fore. there is need for the investment of
money which will provide for all these
things while at the same time securing as
fas as is possible better wages and
shorter hours for their employees. There
fore, while there must be just and rea-
Sonable regulation of rates. we should be
the first to protest against any arbitrary
and unthinking movement to cut them
down without the fullest and most care
full consideration of all interests con-
cerned and of the actual needs of the
situation. Only special body of men
acting for the national government I'M
der authority conferred upon it by the
congress is competent to pass judgment
on such a matter.
Creates Elasticity In
Currency Is Urged.
| The president quotes extensively from
| his last message in dealing with the di-
rect subject of currency legislation, and
says:
II again urge on the congress the need
| of immediate attention to this matter,
We~need a greater elasticity in our cur
rency; provided, of course, that we recog-
nize the even greater need of a safe and
secure currency. There must always be
| the most rigid examination by the ma
tional authorities. Provision should be
made for an emergency currency. The
emergency issue should, of course, be
made with effective guaranty, and up
on conditions carefully prescribed by the
i government. Such emergency issue must
be based on adequate securities approved
! by the government, and must be issued
! under a heavy tax. This would permit
/ currency being issued when the demand
! for it was urgent while securing its re-
tirement as the demand fell off, 1t is
! worth investigating to determine whether
! officers and directors of national banks
! should ever be allowed to loan to them
j selves. Trust companies should be sub
/ ject to the same supervision as banks;
| legislation to this effect should be en-
acted for the District of Columbia and
/ the territories.
Yet we must also remember that even
tile wisest legislation on the subject can
only accomplish a certain amount No
! legislation can by any possibility guar
antee the business community against the
results OF speculative folly any more than
| it can guarantee an Individual against the
results of his eYtravaganee. When an in
dv;iual mortgages hs house to buy an
automobile w invites iiE0ster: and when