The herald-advance. (Milbank, S.D.) 1890-1922, 1907-12-06

TO DEcVOnI Tie ABUSES lIClOcIl 10 the
creation Of unhealthy and improper COM
binations. instead Of waiting until they
are in existence and then attempting to
destroy them by civil or criminal pro-
"a combination should not be tolerated
If it abuse the power acquired by combi-
nation to the public detriment. No cor
poration or association of any kind shoul
be permitted to engage in foreign or in
t~erstate commerce that is formed for the
purpose. of. or whose operations create. a
monopoly or gneral control Of the pro-
duction, sale or distribution of any one
or more of the prime necessities Of life or
articles of general use and necessity.
Such combinations are against public pol
lev: they violate the common law; the
doors Of the courts are closed to those
the congress can close the channels Of in.
eerstate against them for its
'r Prohisit Unhealthy Competition.
Among the points to be aimed at
competition. such as by rendering serv.
Ice at an actual loss for the purpose VI
crushing out competition, the prevention
81 imitation of capital. and the prohlbl-
trade with itself a condition of having
any trade with itself. Reasonable agree
ments between. or combinations of, cor
porations should be permitted, provided
they are first submitted to and approved
by some appropriate government body.
THE congress has the power to charter
corporations to engage in interstate ana
foreign and a general law
can be enacted under the provisions OF
which existing corporations could take
out federal charters and new iederal
corporations could be created. An es-
sentlal provision OF such a law shoulo
be q method Of pr~edetermining by some
federal board or commission whether the
applicant for a federal charter was an
association or combination within the re-
strictions of the federal law. Provision
should also be made for complete pun
licity in all matters affecting the public
and omplet protection to the investing
public and the shareholders in the mat
ter of issuing corporate securities. lt an
incorporation law is not deemed adVlsa-
BILE. a license act for big interstate cor
porations might be enacted. or a COM
supervision established might be analo,
gous to that now exercised over national
banks: At least. the ANTITRUST act
should be supplemented by specific pro-
hibitions of the methods which expert
ence has shown have been of most serv-
Ice in enabling monopolistic combinations
to crush out competition. The real own,
ers of a corporation should be compelled
to do business in their own name.
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
benetit them as it has benefited the ma
tinnal banks. In the recent buslnes
/ 1919 J. ii III hl"e WV
tons which failed were institutions which
were not under the supervision and con-
troll Of the national government. THOSE
which were under national control stood
the test.
Would Benefit All.
would be to the benefit of every we'll
managed railway. From the standpoint
of the public there is need for additional
tracks, additional terminals and improve
vrary~ L., yIa 1at,,, All ~ rho all
roads, and all this as rapidly as possible.
Ample safe and speedy transportation
facilities are even more necessary imam
cheap transportation. Therefore there IS
will provide for all these things, While
at the same time securing, as far as pos
sible, better wages and shorter hours I"r
their employees. Therefore. while tnefe
must be just and reasonable regulation
of rates, we should be the first to protest
against any arbitrary and u~nthinklng
movement to cut them down without the
fullest and most careful consideration or
all interests concerned and of the actual
needs of the situation. Only a speclal
body of men acting for the ation gov
ernnent under authority conferred upon
1t by the congress is competent to pass
judgment on such a matter.
Those who fear. from any reason. the
extension of federal activity will do well
to study the history not only OF the ma,
tional banking act but of the pure food
law. and notably the meat inspection law
recently enacted. The pure food law
was opposed so violently that it's passage
was delayed for a decade, yet IL mas
worked unmixed and immediate good
The meat inspection law was even more
violently assailed. Two years have not
elapsed. and already 1t has become eVl-
dent that the great benefit the law ON ~
an equal benefit to the reputable packing
establishments. The latter are better on
under the law than they were without IL.
mt - 4 x-,-<n nnyHN n n a rTlpTG
and business concerns from the leslsia-
ton 1 advocate would be eauaily marx
ed"
Pure Food Law.
incidentally in the passage OF the
pure food law the action of the various
state food and dairy commissioners snow
ed in striking fashion how much sood Ior
the whole people results from the nearly
cooperation of the federal and state OF
ncials in securing a given reform. 1T IS
primarily to the action OF these stare
commissioners that we owe the enart-
ment of this law, for they aroused me
people. first to demand the enactment ana
enforcement of state laws on the sup
1ect, and then the enactment of the led
eral law, without which the state laws
were largely ineffective. Ihere must oe
tional and state governments In aoiil"-
istering these laws
The president again calls attention to
the condition OF our currency laws anu
urges on congress the need of immediate
attention to this matter. He saws,
1--WE need a greater elasticity IN our
currency; provided. of course. that we
recognize the even greater need or a sa1e
and secure currency. There must always
he the most rigid examination by the ma
tional authorities. Provision should ne
made for an emergency currency. The
emergency issue should. Of course. be
made with an effective guaranty. and
upon conditions carefully prescribed by
the government. Such emergency. issue
must be based on adequate securities ap-
proved by the government. and must be
issued under a heavy tax. This WOULD
permit currency being issued when the
demand for 1t was urgent. while Secur-
Ing it's retirement az the demand fell Off.
It is worth Investigating to determine
whether officers and directors of national
banks should ever be allowed to loan to
themselves. Trust companies should be
subject to the same supervision as banks:
legislation to this effect should be enacted
for the District of Columbia and the ter
ritories.
yet we must also remember that even
the wisest legislation on the subject can
legislation can by any possibility guar
antee the business community against the
results Of speculative follv any more than
1t can guarantee an individual against
the results Of his extravaganza"
The income account Of the nation Is In
a most satisfactory condition. Neverthe-
less. the president says, there is an evil
dent and constantly growing feeling
Omono orr npopla that the time is rap n