The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-07-08
Says States Should Bar Hold.
ing Company Corporations
and Thus Destroy Trusts.
Speech Last Night.

Briefly summed up Hon. George w.
Wickersham. attorney general of the
United States believes that trust and
combinations in restraint of trade.
can be curbed by state laws, refusing
Licenses to foreign corporations or
ganized In any other states, fifty per
cent of whose stock is owned by an
other corporation. He also advocates
a national law, providing for federal
creation OF corporations doing inter
state commerce business.
Mr.. Wickersham established by
many numerous citations that states
have authority to restrict the en-
trance of foreign corporations within
their borders by any terms they see
NJ, so that they are treated like other
similar corporations: but he empha-
sized the limitations on this authority
when II comes to dealing with inter-
state commerce conditions.
He said: Much legislation has
been enacted in various states for the
purpose Of preventing trusts. pools
and combinations in restraint OF trade
and monopolies. Some of them have
been more or less effective; most of
them have proved Ineffective as APP
piled to foreign corporations.
1T has seemed TO me-" he said.
that an effective method Of leglslat-
ing on this subject would be to enact
that no foreign corporation would be
licensed to do business within che
state II fifty per centum OF Its capital
stock or upwards was owned or held
by any other corporation domestic or
foreign; and that II at any time after
obtaining a license more than fifty
per cent of the capital stock of such
a corporation Is acquired by another
corporation the license should be
lpso facto vacated The device of the
holding corporation Is the only thing
which has made possible the rapid
growth OF the great trusts and mo-
nOpolies and a prohibition. such az
that stated, would go far toward
their destruction.
Demand Federal Protection.
"The increasing completely and va
rlety OF regulation and taxation OF
foreign corporations by the various
states has led to the organization Of
domestic corporations under the laws
OF the respective states where bust
ness Is TO be conducted. the capital
stocks Of which are held by hold
Ing company, organized to that mode
OF organization. Such Is the organ
lzation OF practically all Of the best
known trusts A system of disqual-
flying state legislation such as sug-
gested. while effective for the pur-
pose. would inevitably increase the
demand for federal legislation au-
thorizing the organization OF corpor-
ations under national laws for the con
duct OF interstate business.
lie established the power OF con-
gress to organize corporations under
the general power to regulate com
merce among the states, and by many
precedents. and said:
Capitalization Inevitable.
"Of course, many will object to the
centralizing tendency of a national
law. authorizing the formation of cor
poratlons TO carry on interstate busi-
ness: but such a law seems TO me to
De the inevitable result OF economic
conditions. The business OF manu-
facture and sale or barter and trade,
Is today conducted on such a vast
scale that IL cannot be circumscribed
by the boundaries OF any one state.
On the other hand, no one state can
effectively grapple with abuses of
the vast power which modern condi-
lions place in the hands of those who
control great corporate enterprises.
The amendment TO the tariff bill re-
Gently introduced in congress. will. II
enacted into a law. for the first time,
require of all corporations, wherever
organized, annual reports of those
facts concerning their business which
their stockholders and creditors and
all who deal with them are entitled
to know. If. now. congress shall en-
act law providing for national in
corporation to carry on interstate
commerce, subject to such restric-
lions and with such freedom from
local state control as congress shall
see At TO prescribe. the state control
Of foreign corporations will soon
cease to be a subject of great i'm.
portance."
Well Received.
Hon. John II. Allen. of Lexington