New-York tribune., 1907-12-09
rOR. FEDERAL CONTROL.
srPPORTED BY SIRIUS.
Ncfiona! Regulation of Corporations
Urged as Cure for EUilS.

s - kill competition and publicity prevent
=. If business evils constitute the most important
,o-a+ions in the annual report OF Oscar 8
S.rans Secretary of Commerce and Labor, made
public to-day III leleiIfis ~ tlie oOi Poi aiioi'
nroblem he says:
coTpoTSsI scope but its legal status is still de-
g;gaited almost wholly by state statutes discrep-
sngIs any The legal conditions should at least be
ea1ebt into some reasonable relation TO the busi-
9bose great companies whose operations sub
s. anIstionai The control over them. TO
,4 st least, should also be national. by the gen
sTal government The power and jurisdiction OF the
excc,isrive authority should he commensurate with
iae iaesed tgt9 Ceftralization as business fact has
been accomplished. II only remains to be deter
io The facts which they hey are res supposed ; to e9Ter
NOr sa ebouid 6erogate from proper state mower
sneb system merely implies that the federal gov
eminent would attend 10 those national affairs or
Interstate commerce clearly intrusted TO it by the
Consttuti9I @Ha59 5tn IA fb e.; ps 'a9 @ ne re9
ex-snf powerless and their action largely conflict
gfa42 Ing a4a ef action and eec{uaI pubiicty a
As Illustrative OF the value OF such efficient pub
ne report O. the Commissioner of Corporations
he Transportation Of petroleum made in May. 1906
t+inr forth the detailed facts in regard 10 large
rTr1ter Of railway determinations, illegal
ana ,1a Numerous indictments based on this re-
port have have 0n ere6 But 0 m 4 te ost eer
anf result was the immediate cancellation by the
II the Tep6r5 as well as Of many of the systems
Of which Wntie possibly 9si bly, not ii
r-scfice of giving and accepting railway discrill
s9p 6ee h%s the i'T pbcation I Of this report "
The experience OF the bureau in its examination
ions 4 f a broast OUT Clearly The real object t2SsTd
rncte5 .t Industrial combination as such appears
- Re an inevitable economic necessity This fact
ssnccessfIilly The prohibition OF commercial power
simply because Il results from combination is futile
N~~ NOT
such poTer. but its misuse, 10 which attention
CTo1uniercial success which is based solely upon
The proper use ef commercial power upon the Civ
nsfor is success that justiiies itself, is proper
Business deveioIIne13t and wcTs beneht both mo 10
hand success that is based not on service 10 the
unfair methods, is ali evil 10 be prevented Ihe
one holds its power because II best serves
cause i acrey 1a ba Tei,t1ie n should
be the aim OF the government to keep open equally
20 ~ -aveTt the use of those unfair means that
enc L9 Ti,,,i,ic,' s,,cI, oTnorfDniTv that close
II TO one man while leaving il open TO another
e1oe tbst nybiicitv is the best deterrent against
such unfair methods and that few. if any corp3-
-ais managers have the courage 70 continue o&IeIy &
en- practices when the exact details taerS91 i3i5 habe
lie by name. date. amount or place
In order to obtain the desired publicity Mr. straus
thus tells Of the rule Of the Of corporations:
rsns nyest1gatioIs INTO me & steel IIn1per rt k
on The petroleum Industry and with inquiries
nected with canals, coastNise and river naTlgailo.
t-amTsnv and in making a special investigation
relating 10 patents held by gcEernIIent eEaplofEes YES
lerad that these Investigations will set before the
public number Of important economic and imam
ca facts and tendencies that VIII be OF the hlghsst
Eslue II dealing with great ln1lSfTat II pr9nle % bea,,
has sgnaily jsLed that R phse & OF ,, me p9ey 9 P ql
matters by federal means; that so great has been
Icity can be attained only through the general
seEs 1a5 II n6 sfT tat VII force the adoption Of
national system OF regulation or supervision OF
70 soS 5stioaa ion bgf in order that the significant
facts Of corporate management may be correctly
proper basis for just and intelligent action thereon
Mr.. straus lays emphasis upon the desirability
OF Increasing the American merchant marine ser
vice engaged IL foreign commerce by means of
sabsidies, saying:
In volume merchant shipping under The American
flag IS surpassed only by merchant shipping under
The British flag In its types and uses, however,
cur Shipping differs radically from the slpplng OF
10 domestic transportation and relatively Is
far below our strength as q naval power. More
Than one-third Of our tonnage is operated on the
lakes. where II is cut OF from effective Tor
egn competition, while the trade OF our many
rivers and canal systems employs another consld-
ss9e porLl9n, nSl.y & o. III III H m Iv offer Of -be
great divisions Of industrial and commercial en-
u
ocean carrtn power is insignificant Il is humble
bx comparison with the corlTercial sea power OF
other resrect We are CHASED Even in the dis
t6srpa NJ 0rdfnsfy functions of government We
have put ourselves under the protection OF foreign
fags. Not many months ago u became netessa.S
Cuba: they were sent under the British flag More
recently u was decided 10 traIsieT I "a PqsCc 25if5
feet OF WaTshiDs from the Atlantic 10 me Facilio;
snd the coal Tor this feet is under the sheer oi
sfegn Tags situation MIliGn fou1 "a Nh tb ~ Tenbiis
Of South america carried almost entirely IN
land they are now entirely carried
have alluded 70 the fact ttlat ID me per!oi ~
resort 70 foreign aseges sI16 noter
P0eer In similar position There is not another
h-lieve which if II found itself in that position
would allow such condfllons 70 conIlIue ps -
nan Until by sufficient expenditure they .'ould ba
corrected IN The shortest possible tl1lie uIr g
as appropriations for the army the navy the Pan
an anTt preparad 81 1af PfS Rf s iime to
measure that shall insure rs superior man c9[a
VIII Australasia by way Of our lnsqidr -2
way 20 Of Jspl2 and Chi Gina The special political
ans commercial reasons for the establshment OF
tlca lines OF American steamships are so IdlIad
y Congress that statement OF them @ mere "oeI1 @
l,aclTe and no departure from q SsItpi So 20 ay
justified by our own experience ana mat o. oliei
Tie compensation provided by the ocean mail
sg Of 1881 is inadequate TO establish afneIGsh G, y
.anerica and 10 the Philippines, Australasia and
coTnpensatian faI such services to which
would be effective is at the present time The most
feasible means OF promoting our merchant marine .
II NY Judgment the rate Of 81 statute lnie out
ward bound provided for t~ent2-kflot ssea.n- an
ers should also be provided for steamships OF SIX
teen knots or over on the routes which have ind-
Gated
As means Of increasing the trade Of the United
states with foreign nations Mr.. straus makes TINS
recommendation:
n connection with the promotion Of foreign com
..l<rce should like esfablished closer feIaz
Sessk between the Department oI commerce alo
s~soor and especially its bureau OF narulactnresc
e. e. tne various commercial bodies; channDers o.