The Detroit times., 1908-08-25

trading corporation engaged In
interstate commerce TO take out
federal license before II shall be
permitted TO control as much as
25 per cent of the product In which
II deals, the license, to protect the
public from waterea stock and to
H. prohibit =1he@eent rei=ey-sach cor
poration OF more than so per. cent
OF the total amount OF any product
consumed In the United StateI
1T will be noticed. in the first place,
that care was taken by those who
drew the platform TO provide that
there should be no abridgment OF the
right OF state To create corpora
lions, or OF its right TO regulate as II
will foreign corporations doing busi-
ness within its limits. This plan.
therefore. does not In the least in
fringe upon the right OF the states TO
protect their own people. Ii simply
provides for the exercise by congress
of the power vested in 1t 10 regulate
Interstate commerce. AS long as a
corporation confines itself TO the
state In which II is created. congress
cannot interfere with 1t: but when
the corporation engages In interstate
commerce, congress is the only power
that can regulate it's Interstate bust
ness.
Not New Doctrine.
In proposing the exercise OF this
power. the Democratic platform is not
asserting a new doctrine. In Janu-
airy. 1896, a Republican house Of rep
resentatives adopted a resolution call
ing upon Hon hudson Harmon then
attorney general OF the United States
now the Democratic candidate for
governor OF Ohio, to report what
steps, II any. had been taken to en-
force the law of the United States
against trusts, combinations and con-
spiracies in restraint Of trade and
commerce, and what further legisla
ton was. In his opinion. needed TO
protect the people against the same.
On the eighth day OF February he sub
mitted "A reply. in which he described
| the steps which were being taken TO
enforce the law, and recommended
the enactment OF further legislation.
7 call special attention 10 the follow
ing words:
- Congress may make IL unlawful
! to ship from one state to another,
!
carry out, the designs OF such
4-tstatel organizations1a articles pro-
/ duced. owned or controlled by
them or any of their members or
agents.
His recommendation embodies the
very idea which our plan now pro-
poses to carry out. We want TO make
It unlawful for a corporation 70 use
! The NEUTRALITY-SUSPICIOUS. or Interstate
commerce for the carrying out OF
monopolistic purpose. Surely no par
! ty San consistently claim 10 be OPP
posed to private monopoies which
will permit the interstate railroads TO
be used 10 carry out the designs or
monopoly. or which will permit the
7 Interstate telegraph Hines TO be used
TO increase the power of private
monopoly; or. TO make the case
stronger. no party can consistently
claim 10 be opposed TO the trusts
which will allow the mails Of the Unit
ed States to be used by the trusts as
an agency for the determination of
competition Congress has already
exercised this power TO exterminate
lotteries Why not exercise IL TO
make private monopolies impossible?
"If Il Is conceded that congress has
the power TO prevent the shipment or
goods from one state to another when
such shipment Is part OF conspir-
acy against trade and commerce then
the only question IL as To the means
TO be employed to prevent such ship
Iment The license system presents
an easy WAY of regulating such cor
operations as need federal regulation.
The law can prohibit the doing of a
thing and impose penalty for the
violation OF the law, but experience
has shown that Il Is very difficult TO
gather UP evidence from all sections
Of the United States and prosecute a
great corporation; so difficult Is 1t,
that although the Sherman antitrust
law has been in force for Is years. no
trust magnate has been sent TO the
penitentiary for violating the law, al
though In "A few cases the court has
found corporations guilty of a viola
ton OF the law. In the enforcement
OF a penalty, the government must
seek the defendant; by the use OF the
license system, the corporation Is
compelled to seek the government
"a trust cnn best be defined ns a
corporation which controls so large %
proportion OF the total quantity of any
article used In this country ns TO be
able to regulate the price and terms OF
sale, and as the proportion controlled
determines the power OF the trust Tor
harm. IL has seemed best to use proper
i Tomato control as a basis OF this plan.
and 20 per cent has been fixed arbi-
trarily as the proportion at which the
line should be drawn. corporation
\ which controls less than % per cent Of
- sss+rteif a4e.=fttsYT-tt.
pxtraordinary-tcases exert n p.rceptible
! influence inN controlling the price OF
the product and the terms OF sale. but
as q rule corporation must control
! more than that percentage OF total pro-
duct before ~ can exert a hurtful infu-
! cnCc on trade. Under this plan. thu
| small corporations are lett entirely
free and unhampered THIS il not "A
| discrimination against the larger COZ
! porations- but u recognition of The fact
that rules are necessary la the case of
! corporations controlling large pc
I Centagc OF the product which are not
4 necessary in the case Of smaller cor
pnrations Probably not ! per cent of
the corporations engaged in interstate
commerce would be required TO take
out license under this plan--possibly
not one-half 81 per cent--and yet
A ILL a