The San Francisco call., 1908-04-28
NATIONAL INCORPORATION Law


Power should unquestionably be lodged some
where in the executive branch of the govern
ment TO permit combinations which will further
the public interest. but 1t must always be re-
membered that regards the great wealthy
combinations through which most OF the inter-
state state business OF today is done the burden a. OF OF
have right to exist. No judicial tribunal
has the knowledge or the experience to deter
bination is advisable or necessary in the in
terest Of the public. Somebody, whether a
Of commerce and labor, should be given this
power. Ny personal belief is that ultimately
we shall have TO adopt q national incorpora-
tion law. though | am well aware that this may
be impossible at present. Over the actions Of the
executive body in which the power is placed the
courts should possess merely power Of review,
analogous to that obtaining in connection with
the work of the interstate commerce commits
a leap in the dark. 1t would be merely TO
carry still further the theory Of effective gov
ernmental control Of corporations which was
commerce commission and for the enlargement
of its powers and for the creation Of the
merce legislation has worked admirably. 1t has
benefited the public; II has osnenfed honestly
in spite Of the fact that the business of the
country has enormously increased the value OF
this federal legislation has been shown. by the
way in which II has enabled the federal gov
ernment to correct the most pronounced of the
great and varied abuses which existed in the
business world. 20 years ago-while the many
abuses that still remain emphasize the need of
further and more thorough going legislation.
Similarly the bureau of corporations has amply
justified fits creation. In other words, it is
clear that the principles employed to remedy
the great evils in the business world have
worked we'll and they can now be employed TO
correct the evils that further commercial growth
has brought more prominently to the surface.
INCREASE COMMISSIONS POWER
The powers and scope Of the interstate COM
meree commission and Of any similar body. such such
with the matter in hand, should be greatly en-
larged, so as TO meet the requirements of the
present day. The decisions Of the supreme court
Ia the Minnesota and North Carolina cases illus
trate how impossible is dual control OF ma
tionaI commerce. The states cannot control il.
All they can do is TO control intrastate COM
merce. and this is but a small fraction of the
business carried through each state. Actual ex-
perience has shown that the effort at state
troll is sure 10 be nullihed in one way or an
other sooner or later. The nation alone can
have the control both of the business and OF
the agent by which the business is done, for
any attempt to separate this control must re-
suit in great absurdty. This means that we
must rely upon national legislation TO prevent
the commercial abuses that now exist and the
others that are sure to arise unless eff-
cient governmental body has adequate power Of
control over them. At present the failure Of
congress TO utilize and exercise the great
powers conferred upon 1t as regards interstate
commerce leaves this commerce 20 be regulated,
not by the state, nor yet by congress, but by
one sided action OF the federal judiciary. How
ever upright and able court IS it cannot act
I
structiyely as agency OF government and
this means that the courts and must al
ways be unable to deal effectively with a prob
lem like the present, which requires constructive
action. court can decide what is faulty, but
il has power 10 make better what 1t thus
finds TO be faulty There should be an efficient
executive body created with power enough 10
correct abuses and scope enough to work out
the complex problems that this great country
has developed. II is not sufficient objection to
say that such body may be guilty of
wisdom Of abuses. Any governmental body
whether court or a commission whether execu-
tive. legislative judicial. il given power
enough 20 enable it TO do effective work for
good, must also inevitably receive enough power
to make it possibly effective for evil.
SUPERVISE INTER- STATE TRADE
Therefore it is clear that (unless national
Incorporation law be enacted) that body or bodies
to pass upon any combination or agreement ia
relation 10 interstate commerce. and every such
combination and agreement not thus approved
should be treated IN violation of law and
prosecuted accordingly. The issuance of the Sc
curities OF any combination doing interstate bus-
! should be under the supervision of the ma
uonal government A strong effort has been
empted from any Of the operations of this law
whether or not their acts are in restraint Of
trade. Such exception would in all probability
make the bill unconstitutional, and tiie legisia-
ture has more right to pass bill without re-
gard 20 whether IL is constitutional than the
courts have lightly to declare unconstitutional 4.
law which the legislature has solemnly enacted.
The responsibility is as great the side as
on the other. and an abuse of power by the leg
slature in direction Is equally to be con-
4 demned with an abuse OF power by the courts in
the other direction. 1t is not p0sslble wholly