New-York tribune., 1907-10-24
REGULATION OF TRUSTS
Isaac n. Sehgman, Judge Grosscup
and Gompcrs Talk in Chicago.

Chicago. Oct. 23.-The second day of the convcn-
ton Of the National Civic Federation was devoted
10 the consideration OF The Corporation. Its Con
struction and Regulation The chief speakers
during the day J. W. jerks, of Cornell Uni
versity; Edgar a. Bancroft, OF Chicago Irving
Fisher OF New Haven; Judge Peter 5. Grosscup Of
Chicago; Samuel Gompers. Of Washington; Frank
g. Kellogg. Of 81. Paul; Z. Z. Prussng, Of Chi
cago; Isaac y. Seligman. OF New York. and Pro-
fessor Frank Parsons, of Boston
Mr.. seligman spoke Remedial Federal Leg
isaton, Limitation Of Capitalization and Enforce
ment Of Publicity" He said in part
1t appears to me beyond any reasonable doubt
Ihat a national regulation OF our corporations is
interests OF the. corporations Themselves II is
ing any uniform intelligent regulation of corpora
tons If every state Is permitted to pass its
laws. firmly believe that the granting OF a fed
eral franchise or license 10 engage in interstate
commerce would tend fully TO protect such com
panes as remained within the law, and would de-
iend them from harassment by forty-ive separate
have always advocated publiclty in the con-
duct Of affairs Of trusts combinations. Pub
permanent antdotes There is no reason why the
same policy which is already applied to satings
national banks and railroad companies by the fed
would apply especially to the filing and publica-
ton or regular statements under fixed rules and at
The question of capitalization in the case of the
trust is one that primarily affects the investing
been made Of overcapalization OF industrial enter
pTlScS. 30 Tar as the control Of Capitalization Is
intended to safeguard the investor, can only rec
ord my conviction that the judgment Of the mar
of the comp5ny If this e capitaiisatoh is larger
than the facts warrant the securities sell at dis
actual basis OF such market valuation Is not the
par value. yet the actual assets Of the
pany but it is in every case the earning capacity.
The establishment OF the bureau of corporations
in our system. What is now needed IS modihca-
ton OF the SheTnan law the repeal Of its drastic
by sections providing for a reasonable publicity
porations doing an interstate business.
GOMPERs on LABOR's ATTITUDE.
During address Labor and It's Attitude
Toward the Trusts" Mr.. Gompers said trust
form, TO be effective must come from another
than that now generally accepted-that 1t
must come through the creation of a public opin-
ion which will 10 It that the will Of the people
and not the mandate OF corporate influences shall
be paramount lie believes this could be brought
about through organized association Of the masses
lie continued:
II is idle chatter 10 talk Of annillaiing trusts
The trust Is, economically speaking. the logical
and inevitable accompaniment and Development Of
our modern commercial and industrial systems
Much of the protest against trust methods is justly
and legitimaeIy based on the fact that trust pro-
lnoters, managers and owners seize and keep for
themselves n far greater share of the profits of
Which they are entitled he trades i union ' is the
voluntary association of the many for the benefit
association of the few for their own benefit
The %orern ] 80 OF brnG e donpg nave pretty &
zation is the watchword OF modern industry. Labor
comedies the right of organization among employ
crs II is perfectly willing deal with such asso-
Citations provided its own rights are not denied
rights are recognized and conceded.
VIEWS Or JUDGE GROSscUP.
Judge Grosscup. of tile United States Circuit
Court spoke What Should BE the Structure OF
the New Corporation lie said, in part:
Neither the object for which the corporation is
formed. the amount OF its capitalization nor
the character of the securities issued, commands
any preliminary attention other than such as Is
merely perfunctory. Put your nickel in the Slot
and take out charter, is the invitation that the
states extend and in line before the slot machine
entitled too to an equal place in the line. are the
corporate projects conceived to defraud as well as
those that have honest purpose. Neither is de-
tanned by so much inquiry.
For Indifference such that. / would substitute
at tie threshold corporations application for
existence honest, careful inquiry by tribu-
nal of governmental tribunal that will act only
after II has hearda hearing in which the public is
re epresented by district attorney. whom is thus
deyoIyed the duty not merely Of pursuing the horse