The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-02-03
Commissioner of Corporations
Submits His Annual Report.
Says Public Opinion Will Cor
rect Commercial Evils
WHEN GIVEN FACTS
Plainly Set Forth the People
Will Do the Rest.
Points Out Need of a General
Administrative System.

Washington, Feb. 3.-Public opin-
ION has been prompt and efficient in
the correction of commercial evils
when those evils are stated specifical-
". This is one of the conclusions
reached by Herbert Knox Smith, COM
missioner of corporations and ex-
pressed in the annual report of the
operations of the bureau of corpora
lions made public today. Naturally,
under present conditions 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 of an ex-
tension of such results by the creation
or general administrative system of
supervision of Interstate corpora lions
winch shall give, in substantially the
same form as is furnished now for a
Few corporations, the essential facts
relating to all the great interstate cor
porations. Whether the system takes
the form of federal license plan or
simple requirement that interstate
corporations shall make reports and
submit their books to federal bureau
IS or 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 &C
compiish the result; which will en-
able the government to deal with such
corporations in the main by admins
tratfve supervision rather than by
judicial procedures; whose methods
Will be preventive rather than penal;
and most important of all, a system
which will afford a permanent practi-
cal ground for contract and co-opera-
ton between the government officials
charged with this work on the one
hand and corporate managers on the
other hand.
at 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
subject matter of the bureaus inves-
legations. This assistance given by
the leaders of industry has been very
encouraging, especially in its indica-
ton of the attitude of many of the
ablest men of the country and the at
titude of the public at large toward
the fundamental objects for which
this bureau was created.
Business Is Natural.
There is no need that such federal
supervision should derogate from the
proper powers of the state. The bust
ness of today is transacted under con-
ditions which from a commercial
standpoint are purely national with no
reference to state lines, but the legal
status of these businesses is still limit
ed almost wholly by state statutes, a
discrepancy which has been the cause
of many existing evils. Corporate CON-
merce, as carried on by those great
companies whose operations Substan-
TALLY constitute the whole problem be-
fore US, is national and has been de-
liberately made national; the control
over them should, to some extent at
least be also national.
''It is with such information as the
bureau of corporations is able under
~ 10 70 md 1icIa hot ho
great corrective force of public opinion
can be intelligently and efficiently d.
rected at those industrial evils that
constitute the most important of our
present problems.
Corporate communication as such
appears to be not only an economic
necessity, but also largely an accom-
plished fact. 1t is not the existence of
Industrial power, but rather its misuse
that is the real problem. The govern
ment should direct it's attention toward
preventing unfair methods, and toward
keeping open the opportunities for
competition in industry"
Little idea of the accomplishments
of the bureau of corporations during
the fiscal year, ended June Both last, is
afforded by the report for the reason
that under the law, the results achieved
may be made public only by the presi-
dent or through his express authority.
Commissioner Smith points out
the bureau during the year consisted
in aiding the law officers Of the govern
ment in preparing and prosecuting in
sdictments against the oil trust for al
legged offenses against the Elkins law.
DETERMINATIONS in railway rates). The
report says:
1.-THE offenses upon which these in
dictments were brought were not mere
technical branches of law, but were in
most cases, wilful, long continued and
dangerous violations of the entire
spirit and letter of the legislation for
bidding railway determinations
Commissioner Smith says he is
continuing the Investigations already
begun into the industries of petrol
cum, tobacco and steel. Under reso-
buttons adopted by the last congress.
the bureau also is making investiga-
lions into the operations of the In