New-York tribune., 1908-02-04
CORPORATION CONTROL
Com missioner Smith on Need of
Federal Supervision.

washington. Feb s-Pubiic opinion has been
rror7pt and efficient in the correction of CONNER
c5al evil. when those evils stated specifically
This is one Of the conclusions reached by Herbert
knox Smith. COMMISSIONS of Corporations, and
sxrressed ia the annual report of the operations
,< the bureau of corporations made public to-day
Naturally under present conditions, the real power
o< public opinion reaches only such may
he specifically stated The Commissioner says:
Thus the experience of the bureau seems TO point
logically the need for AN extension of such re
SUITS 10y the eIeacon oi so-e-s a. rort i
,s,ch shall give in substantially the same form
Ssn-fsl facts relating to all the great Interstate
corporations NIethsT the system l.ahe 13e 1orIn
1Isr interstate corporations shall make reports and
SraIT their books TO federal bureau of little
seat,ence 80 long as the information necessary
S0- publicity is obtained The thing that is I'M
t-at1Iish the result: which VIII Unable the govern
py adnnistI ative supervision rather than by Judl-
1:al procedure; whose methods VIII be preventive
ann ann Which viii afford permanent practical
ground for contact and eo,operat&i6n ion between the @
one hand and corporate managers on the other
sem - II The bureau has had increasingly the vol
nta-y coopeTtioIl and assistance o. most OF me
n the bureaus Investigations This assistance
TouraEins especially in its indication OF the aftl,
t,Se of many Of the abest men OF the country and
as77entsl objects tor which this bureau was Gre
s1S 43ere IS 10 need that such federal supervision
s5ould derogate from the proper powers or lne
s.'es s. CONDITIONS which FROM commercial stand
1oiur are purely national. with no reference 70
sac lines but the legal status Of these businesses
= e-i1i de1ited almost wholly by state statutes
existing evils. Corporate commerce as carried on
tr those great companies whose operations sup-
stsn'ialg cor an5 has been deliberately made a.
tsonsl: the control over JheIn should 10 some eA
!. ,s Eith such Information the bureau OF cor,
perstlons IS sb s r-aaf oorrec+fve force of public
oenron can be nelligently and efficiently directed
>; those Industrial evils that constitute the most
ro-pora1e combination. as such. appears TO be
-nt only q economic necessity, hut also largely
~ accomplished fact II = not the existence of
-eal problem The government should direct rs
s--a--isfo1 toward preventing unfair methods and
toward keeping open the opportunities for compefi-
ttcn in Industry
5tle idea Of the accomplish Of the bureau
~ co-po-a1ier,s in the fiscal year ended June 80,
ar Is afforded by the report, for the reason that
under the law the results achieved may be made
uhi;c only by the President through his express
authority. Commissioner Smith points out. how
ever hat the chief legal work OF the bureau in the
,es- consisted aiding the law officers OF the gov
e-r-1eut in preparing and prosecuting indictments
azains- the Standard Oil Company for alleged Of
fences against the Elkins law Determinations il
abroad rates. The report says:
TIE offences upon which these indictments were
brought were rot mere technical breaches Of law;
~ o-s g - NC ;,stio ~ Ib e,1fi-e soirt and
lerte- Of ;he legislation forbidding railway dis
Crfniastions
Commissioner Smith says he * continuing the III
vestiFation already begun into the petroleum. to-
hseoo and steel industries. Under resolutions
adopted by the last Congress the bureau IS also
eating the operations Of the International
Harvester Company; the cause Of the high price OF
lumber. with 4 view 70 developing any combina-
ton thai may exist. the OF Quotations and
differences in the price of cotton. and patents
granted n officers and employees OF the United
States An inquiry is also being conducted into
pste- transportation both coastwise and internal