The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-02-03
Commissioner Of Corporations
Smith i'm His Report
SAYS Prohibition of COmbina-
lions Is Proven Useless.
HAS GONE RIGHT On
In Spite of the Governments
Effort to Prevent 1t.
Regulation Is the Only Effective
Method, He Says.

Washington Feb 3.-Commis-
sioner Herbert Knox Smith, of the
! bureau of corporations, has sub
mitted to Secretary Straus. of the de-
partment of commerce and labor. the
annual report of the operations of
his bureau for the year ended June
80, 1908. In all respects, it is the
most important report yet submitted
by the bureau of corporations. The
work of the bureau during the last
fiscal year was more varied than dur
ing any similar period since the es-
adjustment of the department of
commerce and labor. During the
year Commissioner Smith directed in
vestigations of many important indus
tries and he now has on hand as cur
rent work inquiries into the tobacco
industry. steel industry, International
Harvester company. lumber industry,
cotton exchanges and water trans
portation.
The most important legal work of
the bureau in the last fiscal year was
in connection with a bill for the
amendment of the Sherman law. A
large amount of work also was done
the preparation for trial of cases
against the Standard Oil company for
alleged practice of Determinations in
railway rates.
Prohibition a Failure.
Discussing the general subject of
corporate regulation and control,
Commissioner Smith says:
There is an irresistible move
ment toward concentration in bust
ness. We must recognize the fact
that Industrial concentration is al
ready largely accomplished, in spite
of general statutory prohibition. The
aim of new legislation should be to
regulate, rather than to prohibit COM
bination. 1t is an obvious absurdity
to attempt to do both at the same
time and prohibition has practically
failed. Our present law. forbidding
adaptation to the actual facts. If
we are to do anything effective with
the corporation question, we must
make an advance on our present
legislation. The practical object is
to see that business opportunity and
the highways of commerce are kept
equally open to all; to prevent fraud,
special privilege and unfair com
petition. To do this, we must
recognize concentration, supervise it,
have a system of efficient publicity.
This is the strongest means for our
purpose. Efficient publicity means
that sort of publicity which reaches
conditions. A permanent office, af-
ter collecting material, must also
summarize it for the public, in brief,
clear and reliable conclusion, showing
important permanent corporate ten
denotes.
What Should Be Done.
f'The control by the federal gov
eminent (of corporations) should be
broadened into a general constructive
system based on tested principles of
supervision, publicity, and co-opera-
ton. The details of such a system in
its main features should be as fol-
lows:
at should be operated by the fed
eral government.
1T should provide for a system
of regular reports from the large in
terstate corporations.
t'Such government office should
have access at all reasonable times to
the records and accounts of such cor
porations.
"That office should publish concise
ly the important facts disclosed. 1t
should safeguard from publication all
business secrets.
Corporations complying with these
requirements should be given the adj
vantage of definite federal registra-
ton.
"The system should. if possible, be
voluntary.