The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-05-23

pduf du UNLAWFUL COMBINATION, III
though the decision rests upon rather
an unsubstantial foundation, since
the court stood i've 10 four. The
death or retirement OF me IL the
majority may lead to u reversal oil
the decision. III the inanciers we're
permitted To Organize holding com.
panies like the Northern Securities
company and through them secure
control OF railroad systems, they
could. by organizing other holding
companies TO hold the stock OF the
hSst holding companies, still further
reduce the amount OF money neces-
sary 70 exercise controlling inllu-
1ence. until comparatively few men
with relatively small amount OF
capital could control the entire rail.
road system OF the United States.
The plan embodied In the North
ern Securities company had great
possibilities fQr evil. The decision
OF the su lit has thus far
II: II: i: 4: :; = y; !:
TO proceed fe c. NJ
OF law that wouD
full for any corporation
stock OF another corporatioG.
congress has no power to inter-
with state corporations 80 long as
they conhne their operations to the
state OF their origin, IL Is within
the scope OF the powers OF congress
TO prescribe the terms upon which a
corporation organized In any state
shall engage In interstate commerce.
While the Securities company has
been dissolved, the three railroads
are controlled by the same group Of
men who would have controlled the
Securities company, and this brings
US TO the second method OF securing
a monopoly, namely, the duplication
Of dirsctorates.
This is one OF the most insidious
forms In which the tendency toward
monopoly manifests itself. When the
same men are the directors Of differ.
ent corporations IL is not necessary
that there shall be any contract OF
even ''eentlemen's agreement
among them, They simply manage
the several corporations as IL thev
were one. The Investigations which
have been conducted during the past
two years show TO what extent this
plan has been adopted among tie
nigh. hnanciers. Not only Is compe-
tition eliminated between railroads
by the duplication OF directories.
but the competition Is suspended as
between different Industrial estab-
Iishmens engaged In the same general
business. Ii, for instance. the lead.
Ing watch companies desire TO avoid
competition they can do so without
into one company ana
without agreement between the COM
panies. All that Is necessary Is 10,
group Of men TO purchase con.
rolling interest In the competing
and then elect themselves
directors OF each company. 1t is
simple process and as effective as IL
s simple.
The insurance magnates adopted
his plan and used II to make an un-
awful profit out OF trust funds. AS
directors OF the insurance companies
hey were, OF course, la duty bound
% manage the trust funds for the
benefit OF the policy but they
'rganized banks, trust com panles and
INVESTMENT companies and ms direct
'rs OF these companies dealt with
bemselys. as directors OF the insur-
lnce companies. As directors OF the
'ther companies they made all that
hey could for themselves, consider
ny, OF course, the close watch which
hey kept over themselves a. custodi-
ms OF trust funds. One must have
Unlimited faith In his own integrity
o attempt 10 act such a dual role II
he intends TO do 1t honestly, and the
public must have an unlimited
mount OF credulity TO allow men to
leal with themselves In such a man.
Ter. The Commoner.