Bisbee daily review., 1909-02-05
SAYS PUBLICITY AND REGULATION
 CURES TRUSTS
Herbert Knox Smith Thinks a Bureau of Corporations Can Control the Octopus.

missioner Herbert Knox smith. oi the Bureau of Corporations today submit ted to Secretary Straus. oi tne be. partment Of Ccmmgrce ana Labor, the annual report of the operations of ais Bureau for the year ended June %. 1908 In all respects, it is the most important report yet sub mitted by Inc Bureau of Corporations. The work oT the Im1Jau during tLe last fiscal ycar was more varied than during any similar period since the establishment of the Department Of Commerce and Labor. During the year Commissioner Smiti directed iuycstigatiou- ui ulGny important in' dusir.es a.d Ec now has on Eand as currczt wcTE. inquiries into ihc to- baCco inGusu-g. steel industry. Inter national Harvester company, lumber industry. CDjrG' ,SclaHgf'-, and water transrcr,-
 The msst iI1, a-gaat l. gal york e. thc Bureau cp -ie last fiscal pear WAS iu connection Witn a bill for the amendment Of the sherman law. \ large amount cf work also was coEe in aiding tie pcpartmenJ of Justice in the preparation for trial Of caSeS against the Standard Oil company for alleged practice of discriminatiors in { railway rates.
 Discussing the general subject of ] corporate regulation and control, Com missioner Smith says:
 There is an irresistible movement toward concentration in business. We must recognize the fact that indus i trial concentration Is already largely accomplished, in spite of gener;n i statutory prohibition. Tie aim uI new legislation should be 70 regulatC. rather than to prohibit combination. It is an obvious absuriity to attempt 1 to do both at the same time. and pro | hibition has practically failed. Our pEesCnt law. fOThidding all Combina- ton. therefore. needs adaptation 10 the actual facts. If we are 10 do any thing effective with the corporation question. We must make an advance on our present legislation. The prac- tical object is to see that business Op- portuniiy and the highways of com mercc are kept equally open to all; | to prevent fraud. special privilege ana unfair competition. To do this, we must recognize concentration, super wise it, and regulate it. Above all. we must have a system of efficient publicity This is the strongest mea=s ' for oGr purpose Efficient publicity means that sort of publicity which reaches the average citizen under every day conditions \ permanent office. after collecting material. must also summarize it for the public. in brief. clear and reliable conclusion, i showing important permanent cor l porate tendencies.
 "The control by the federal gov crn-nent tOf corporaJions3 should be Broadened into general constructive system based on tested principles ol Supervision, publicity land cU-opCra- ton. The details of such a system in it's main features should be as follows:
 { 'Tt should be operated by the led, i eral government.
 "It should provide for a system of . Tygular reports from the large inter state corporations.
 such government Cllco should
 
 the records and accounts of such ccr poratiOns.
 That office should publish concisvly
 the important facts disclosed I
 should be given the advantage of 2, definite federal registration.
 "Thc system stouid, if possible, b- voluntary.
 Finally. supervision must be ad-
 ninistrative. No other method has the necessary fcxibiitv
 We must have a system of super vision which provides a working basis
 for confeTeEce and cooperation and
 which does not rely merely OIL crim
 inaI procedure and opposition. Thcrt
 is not only a change in tEc attitude fof business leaders. There is also af aroused and intelligent demand frcu
 the public for fair business methods
 and for equal commercial opportunii5
 for all. The future of the nation
 must depend largely upon the stabil
 ity of its business machinery Thai
 machinery cannot be permanent Ol
 successful unless it operates openly
 and justly. it must place and keeI
 in control Of our great commercial
 forces men who nave risen there sole
 ly by superior industrial efficiency
 lt must protect such men rom th, competition Of those who get powei by unfair and Illegal methods art
 privilege practices that rely pecu
 iiarly on secrecy. To do this the gov 1 ernment must have such supervision
 and control Of tEat corporate macliE
 cry as will maintain in business thu
 fundamental American ideal of cqua opportunity to all