The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1908-12-01
Control Of Corporations.
Text of Hon James c. Davis Address at the
Cummins Banquet in Dcs Moines.

ITdHhueSS VIII De appreciated anu
language will not be misconstrued. 1t
has been well said that the bar is
the great molder of public opinion
From its ranks are selected the mem
bers of the bench. A majority of our
legislators, state and national, are
lawyers. Most of the high places in
public and official life are occupied
Ey members of our profession, and
the all-around experience of the aver
age lawyer makes him a man of gen
eral information and affairs, and edu-
Gates him to view disputed questions
judicially.
The sentiment of the toast assigned
to ME this evening is one in which
you all know l have great interest.
In the tremendous struggle as to cor
porate rights and control which has
been going on for the last few years,
it is seldom, if ever. that voice has
been raised in defense, much less in
protection of corporate interests, yet
little reflection will assure us that
the business of this country, as we'll
as the business of the world, is prac-
tically accomplished through the
agency of corporations.
For many of the former abuses in
corporate conduct the people them
selves should share the blame. En-
crossed and absorbed in the work of
building up a great commerce, and
aiding the wonderful development of
our country. no limitations We're
placed by our law makers upon cor
porate organization and control, and,
until very recent years, there We're
absolutely no requirements that cap
ital stock when issued should repre-
sent any sort of value, either in cash
or property All that was necessary
to organize a corporation was to pre-
pare your articles. pay recording
fee, and, without scrutiny or crit
icsm by public officials, the corpora
ton was authorized, in the name OF
and by the authority of the state to
90 business.
This situation brought about results
that might have been expected.
ent. and stock was watered with the
same ease and facility that you water
your lawn.
The history and growth of railway
corporations is too recent to require
reorganization Practical railroad
building did not commence until af
ter the close of the civil war. The
business of the country was depressed
and much territory was new and un
! developed The building of railways
| seemed to be the road to prosperity
( These enterprises were generously en-
/ couraged by public and private sub
( scription The lines were built as the
i individual property of their owners
with no thought on their part Of claim
J by the government that such property
\ when created, was to be subject t.
legislative control. Transportation
was bought and sold as private prop
1 erty, upon terms of private contract
with discounts and rebates given ant
received just as merchants, manufac
turers, and farmers by and sell thei
wares and products
/ AS the country settled and develop
| ed, as the carrying companies in
creased in number and power, dis
| examinations between individuals
communities, and commodities be
came unfair and intolerable, and the
ensued the great struggle as to wha
control, If any, the state and fedora
4 governments should exercise over pull
lie service corporations.
The general lines of this conaic
have been settled, granting to tn
government, under some limitations
the right of control and regulation
either by direct legislation or throug
the medium of commissions. Th
right to exercise this powe
having been established, legisl;
ton both state and n;
tional, has been enacted, and is no
in force. prohibiting an sort of di
elimination or favoritism, and punis1
ing with severe penalties, criminal an
pecuniary, all violations of the Lay
/ believe that a conscientious effor
in good faith. is now being made
obey and respect these la S.
Questions regarding the comparati'
inequalities of freight rat s, grown
otu of the complexities of our multi
piled and varied commerce must arts
but all of these questions are beiI
rapidly and fairly disposed of by Il
Interstate Commerce Commission, CT
ated for the very purpos of settlil
these disputes.
: In this situation, where corporation
! whose capital stock represents pre-
erty equal to it's face val-e, are bell
operated absolutely in accordance wi
' the law, are not such interests G
. titled to the credit and considerati,
: due to any other honest enterpris
r Is it not time to call halt upon
i discriminating and continual agitatiC
until. in the light of reasonable exp,
o fence, the effect of present laws h