The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-04
TAKES A WHACK
At THE TRUSTS
Herbert Knox Smith Advocates
General System of Su-
perviSi0n.
BELIEVES THE TIME RIPE
WHAT HAS BEEN ACCOMPLISHED
BY THE BUREAU.


Washington. Feb. 3.-"Public opinion
has been prompt and efficient in the cor
rection of commercial evils when those
evils are stated specifically"
This is one of the conclusions reached
by Herbert Knox Smith, commissioner
of corporations, and expressed in the
annual report of the operations of the
bureau of corporations made public to-
day. Naturally under present condi-
tons, the real power of public opinion
reaches only such cases as may be
specifically stated"
Thus" says Commissioner Smith,
"the experience of the bureau seems
to point logically to the need for an ex-
tension of such results by the creation
of a general administrative system of
supervision of interstate corporations
which shall give, in substantially the
same form as is furnished now for
few corporations, the essential facts re-
lating to all the great interstate COR
pOratiOnS.
System is Needed.
Whether the system takes the form
of a federal license plan or a simple re-
quirement that interstate corporations
shall make reports and submit their
books to a federal bureau, is of little
consequence, so long as the information
necessary for publicity is obtained. The
thing that is important is to arrive at
a system which will accomplish the re-
suit; which viii enable the government
to deal with such corporations in the
main by administrative supervision
rather than by judicial procedure;
whose methods will be preventive rath-
er than penal: and, most important of
all, a system which win afford perma-
nent, practical ground for contract and
cooperation between the government
official charged with this work on the
one hand and corporate managers on
the other.
Time Ripe for a Change.
1T is believed that the time is ripe
for such a system. The voluntary CO.
operation and assistance of most of the
large corporations involved is the sub
ject matter of the bureaus investiga-
tions. This assistance given by the
leaders of industry has been encourage
ing. especially in its indication of the
attitude of many of the ablest men of
the country and the attitude of the
public at large toward the fundamental
ated.
There is no need that such federal
supervision should derogate from the
proper powers of the states.
THE business of today is transacted
under conditions which, from a CONNER
cial standpoint. are purely national,
with no reference to state limits, but
the legal status of these businesses is
still limited almost wholly by state
statutes, q discrepancy which has been
the cause of many existing evils Cor
pOratiVe commerce as carried on by
those great companies, whose operations
substantially constitute the whole prob
lem before US, is natiOnaI and has been
deliberately made national; the control
over them should, to some extent at
least be also national.
Value of the Bureau.
1T is with such information that the
bureau Of corporations is able, under
the law, to collect and publish that the
great corrective force of public opinion
can be intelIigentIy and efficiently di-
rected at those industrial evils that
constitute the most important of our
present problems.
Corporate com animation as such ap-
pears TO not only be an economic ne
cessity. but also largely an accom-
pIished fact. 1t is not the existence of
industrial power, but rather its misuse,
that is the real problem. The govern
ment should direct its attention toward
preventing unfair methods and toward
keeping open the opportunities for COM
petition in industry. Little idea of the
ACCOMPLISHMENTS of the bureau of cor
porations during the fiscal year ended
June 80 last is afforded by the report,
for the reason that, under the law, the
results achieved may be made public
only by the president or through his
express authority"
Aided the Law Officers.
Commissioner Smith points out, how
ever, that the chief legal work of the
bureau during the year consisted in aid
! ing the law officers of the government
| i'm preparing and prosecuting indict-
ments against the oil trust for alleged
ofTenses against the Elkins law dis
| ordinations in railway rates.)
The report says:
"The offenses upon which these in
dietments were brought were not mere
technical breaches of law, but were, in
most cases. wilful, long-continued and
dangerous violations of the entire spirit
and letter of the legislation forbidding
every discrimination
! Commissioner Smith says he is con-
tinuing the Investigations already begun
into the industries of petroleum; tobac-
| co and steel Under resolutions adopt
ed by the last congress, the bureau also
| is making Investigations into the opera
tions of the International Harvester
company. the cause of high prices OF
lumber, with view to developing any
! combination that may exist, into the
causes of fluctuations and differences
! in the nrice of cotton, and into patents
Granted to officers and employees of the
| 1rnited states. An inquiry also is be-
ing conducted into water transportation
| both coastwise and internal.