New-York tribune., 1909-11-20
OF TRADE
Continued from first page.

Court OF the United states. when the
question lTst arose. held that a corpo-
ration formed under the laws or one
state could transact business In another
state only with the leave Of that state
and upon complying with any terms ana
conditions which IL chose TO impose
Mr. Wickersham said that in the eN-
Crcise of this conceded right veritaole
upas tree of conflicting legislation mas
grown up. To avoid the consequence
or this legislation. he said, there MAS
invented the holding corporation most
potent instrument for the creation Oh
vast combinations
FEDERAL INCORPORATION.
NO doubt" said the Attorney General
"the Sherman act IS sufficiently compre
hensiye TO reach and destroy such mo-
nopolies as these. but at the same time
that the national government forges
weapon to destroy such abuses ii must
provide a substitute for those legitimate
enterprises which are equally dependent
for their existence upon the system so
abused. 1t must. therefore, provide q
means Of enabling cooperative enter
prise to engage freely and openly In i'll
-erstate and foreign commerce without
the interferences by state action which
fetter contine and destroy the possibili-
ties Of such free pursuit This can %
done only by the enactment by Congress
Of law providing for the formation 0f
corporations TO engage in trade and com
merce among the states. protecting them
from undue interference by the states
and regulating their activities so as To
prevent tine recurrence under national
auspices OF those abuses which have
arisen under state control
such law should provide for the
organization and management Of trading
corporations, for the issue of their
stock, either without par value. and then
10 such amount as the promoters might
think advantageous. or, if issued with
par value, then TO an amount equal only
t. the cash paid in on the stock; or. II
the stock be issued for property. then
at q fair valuation. ascertained with the
approval Of the department Of govern
ment having supervision of such corpo-
closure Of all the facts pertaining 10 the
value Of such property and the interest
therein of those who are To turn il into
the corporation in exchange for stock
1t should protect the corporations or
ganized under it from undue interfer-
ence by state authorities subjecting its
real and personal property only to such
taxation as is imposed by the state upon
other similar property located therein.
and II should require II 70 file full and
complete reports OF its operations with
the Bureau of Corporations or some other
similar ofhce at regular intervals Such
corporations should be prohibited from
acquiring or holding stock Of other cor
poratiOns. The power 20 regulate inter-
state commerce is believed To be broad
enough 10 authorize such legislation II
has been upheld when directed 20 cor
porations carrying on other forms u
interstate commerce. transportation.
navigation, etc
WOULD OFFER SECURITY.
These agencies Of commerce. thus
created under national authority should
appeal to legitimate investors and 20
legitimate enterprise. They would not
afford the same opportunity Tor stock
watering and stock Juggling as exists
to-day under the complex and conflict
ing regulations Of many states. but they
would offer 10 honest. conservative man
agement AMI 20 prudent investors a Sc
curity which does not exist under the
present system; and. ii svaiied OF 10
large extent. it might be found advis-
able by Congress At some future time
tC prohibit trading corporations or
sanized under state laws from engag-
ing in Interstate commerce. This. how
ever, should be considered only if the
success of voluntary organization under
national law should be 50 demonstrated
as 10 make il clearly appear contrary 10
tne general welfare that no other than
national corporations should engage IN
Interstate trade"
WISE DENO--NCES GRAFTERS.
Other speakers We're Governor Deneen
Of Illinois ana Rabbi Stephen S. Wise. of
New York. Rabbi Wise said in part:
The problem Of the nation to-day is the
problem OF civic duties, a problem OF
which the solution is 10 be found in q
reblrth of what Phillips Brooks has called
The most deadly enemy Of the Republic.
who must hc met ana overcome, Is the
city CRATER the municipal corruption
lst II sc must have a bigger navy and a
bigger army, these ought to be employed
not against imaginary foes across the seas
but against those real enemies OF the Re
public who are undOing the work of the
fathers and bligAtiuE the hopes of democ-
racy by demOralizluE and degrading The
civil life % the nation.
The power Of the Tammany Halls of New
York, Philadelphia, Chicago and San Fran
cisco Is made possible by the corrupt lead
ership of a lew and the inert aCquIeScenre
of The many The difference between most
political CorrupuOnlStS and the average
political purist = that the former are dead
IN earnest ana the latter are in earnest
dead.
The leaders Of the cause of civic reforIDa-
zion, like the churches. spend too much
time and strength in lighting each other.
instead OF waE.nS united warfare upon the
common enemy.
Those most iusiStent upon uartisansbtn
unite from time 20 time ia Diuartisan br-
trayal. IN Washington 10 perpetuate tIe
reign ot "CannoEism.' in Albany To oppose
= Governor with conscience and a viii
who Is more bitterly fought BY the poll
ticians OF his own party than hy the poli-
ticianS OF the opposing party.