The sun. [volume] (New York [N.Y.]) 1833-1916, 1908-04-28

pOWoI 5nOukn 70 CoIItot hDunu8 hiu bVOpo
enough 10 work out the complex problems
that this great country has developed. Il
Is not sufficient objection 10 gay that gIoh
a body may be guilty Of unwiedom or OF
abuses. Any governmental body. whether
a court or a commission whether executive,
legislative or judicial, II given power enough
TO enable II 10 do effective work for good
must also inevitably receive enough power
TO make II possibly effective for evil.
Therefore II Is clear that unless a %nationa
incorporation law can be forthwith enacted)
some body or bodies in the executive service
should be given power to pass upon any
combination or agreement in relation to
interstate commerce. and every such COM
bination or agreement not thus approved
should be treated as in violation Of laW
and prosecuted accordingly. The issu-
ance Of the securities Of any combination
doing interstate business should be under
the supervision Of the national Govern
ment.
A strong effort has been made to have
labor organizations completely exempted
from any Of the operations OF tbs law!
whether or not their acts are In restraint OF
trade. Such exception would in all proba.
bility make the bill unconstitutional. and
the Legislature has Do more right TO pass
a bill without regard to whether II is con-
stltutional than the courts have llghtly 70
declare unconstitutional a law which the
Legislature has solemnly enacted. The re-
spOnsibility is IA great on the one side as
on the other. and an abuse OF power Dy the
Legislature in one direction is equally 10
be condemned with an abuse OF power by
the courts in the other direction, II Is not
possible wholly TO except labor organizations
from the workings OF this law, and they
who insist upon totally excepting them
are merely providing that their STATUS
shall be kept wholly unchanged, and mat
they shall continue 10 be exposed TO the
action which they now dread. Obviously
an organization not formed for profit should
not be required 10 furnish statistics m any
way IA complete as those furnished Oy
organizations for profit. Moreover. 20 lar
as labor il engaged in production only ls
claims TO be exempted from the anti-trGst
law are sound. This would substantially
cover the right Of labOrers to combine, 70
strike peaceably and 10 enter into traue
agreements with the employers.
But when labor undertakes IN a wrongful
manner TO prevent the distribution anu SAFE
Of the products OF labor, az by certain forms
Of the boycott, il has left the field OIL. pro-
duction and its action may plainly be 10 re-
straint Of interstate trade and must neces-
sarily be subject to inquiry, exactly as IN
the case Of any other combination lot the
bdlllt put OHtt 81 as W hNN'i UNIV 49,. -
such action is contrary 10 SOUND puolic
policy. The heartiest encouragement shouId
be given 10 the wage workers TO form laDor
unions and 10 enter into agreements with
their EMPLOYER; and their right to strike
80 long as they act peaceably. must be pre-
served. But we should sanction neither
a boycott nor a blacklist which would be
Illegal at common law.
The measures | advocate are in the IN.
terest both Of decent corporations and OF
law abiding labor unions. They are, more
over, prominently in the interest OF the
public. for in my judgment the American
people have definitely made up their minds
that the days Of the reign OF the great law
defying and law evading corporations are
over, and that from this time on the mighty
organizations Of capital necessary for the
transaction OF business under modern
conditions, while encouraged 80 long as
they act honestly and In the interest OF the
general public, are TO be subjected TO care
full supervision and regulation Of a kind
80 effective az TO insure their acting in the
interest Of the people as a whole.
Allegations are often made 10 the effect
that there il no real need for these laws
looking TO the more effective control OF
the great corporations upon the ground
that they will do their work well without
such control. | call your attention TO the
ACCOMPANYING o Of a report just sub
mitted by Mr.. Nathan Matthews, chairman
OF the Finance Commission, 10 the Mayor
and City Council Of Boston, relating TO GER
tain evil practices OF various corporations
which have been bidders for furnishing 10
the city iron and steel. This report shows
that there have been extensive combinations
formed among the various corporations
which have business with the city Of Boston,
including, for instance, a carefully planned
combination embracing practically all the
firms and corporations engaged in struc-
tural steel work in New England, This
combination included substantially all the
local concerns and many Of the largest
corporations in the United States engaged
in manufacturing or furnishing structural
steel for use in any part Of New England;
affected the States, the cities n towns,
the railroads and street railways, and
generally all persons having occasion to
use iron or steel for any purpose in that sec
lion Of the country. As regards the city Of
the combination resulted in parcel
out the work by collusive bids, plainly
dishonest, and supported by false atirma-
In its conclusion the commission
-ecommends as follows:
Comment on the moral meaning Of these
and transactions would seem super
but a. they were defended at the
public hearings Of the commission and as.
Ierted TO he common and entirely proper in
,idsnts Of business life. and as these prs ctiCes
been freely resorted 10 by some OF the
argest Industrial corporations that the world
ever known, the commission deems il
to record it's own opinion.
The commission dislikes 10 believe that
hese practices are. as alleged, established
the general custom of the business COM
nunity, and this defence itself. II unchal-
amounts toa grave accusation against
he honesty OF present business methods.
Toanswer a invitation for public or private
york by sending in what purports TO he
'enuine bids, bW what in reality are COL
usive figures ~purposely made higher than the
I'D which is known will be submitted by one
the supposed competitors Is an act Of plain
dishonesty.
To support these misrepresentation by
alse afirmations in writing that the bids are
in good faith. and without fraud.
or connection Will any other bidder,
; q positive and deliberate fraud the success
nj bidder in the competition Is guilty Of OBJ
aiming money by false pretences. and the
have made themselves pa rites 10 a
onspiracy clearly unls Wful at the common
NhtTe, an IN tue case OF the boston agree
lent. " a number Of the most important manu-
lecturers and dealers in structural steel In this
including the American Bridge Com
any. one Of the constituent members of the
States Steel Corporation. have com
ined together for the purpose OF raising ,
by means Of c~ollusiye bids and false
presentations, their conduct is not only
epugnant TO common honesty. but is plainly
bnoxious to the Federal statute known as
he Sherman or antitrust law.
The commission believes that an example
hould be made Of these men, and that the !