Albuquerque citizen. [volume] (Albuquerque, N.M.) 1907-1909, 1909-02-03
CORPORATIONS SHOULD
REPORT TO FEDERAL
GOVERNMENT
Bureau OF Corporations Makes
Annual Report of
Work Done and
Projected.
NEED SOME METHOD
OF SUPERVISION
There Is an Irresistible Move
ment Toward ConCentrd-
tion In Business.
Says Herbert
Knox Smith.


er Herbert Knox Smith. of the bu-
reau of corporations, today submitted
to Secretary Straus, of the depart
ment of commerce and labor, the an
nual report of the operations of his
bureau for the year ended June 3Oth,
, 1908. In all respects, it is the most
important report yet submitted by
the bureau of corporations. The work
or the bureau during the last fiscal
year was more varied than during any
similar period since the establishment
of the department Of commerce and
labor. During the year, Commission
er smith directed Investigations OF
many important Industries and he
now has on hand as current work.
inquiries into the tobacco industry,
steel industry, International Harvest
er company, lumber industry, cotton
exchanges, and water transportation.
The most important legal work of
the bureau in the last fiscal year was
in connection with a bill for the am
endment of the Sherman law. A
large amount of work also was done
in aiding the department of justice in
the preparation for trial of cases
against the Standard Oil company for
alleged practice of determinations in
railway rates.
Discussing the general subject OF
corporate regulation and control
Commissioner Smith says:
There is an irresistible movement
toward concentration in business. We
| recognize the fact that Industrial con-
"a Hy Ia
plished, in spite of general statutory
prohibition. The aim of new legisla-
tion should be to regulate. rather
than to prohibit combination. 1t is
an obvious absurdity to attempt to
do both at the same time, and pro-
| hibition has practically failed. Our
present law. forbldding all combina-
tion, therefore needs adaptation 20
the actual facts If we are to do any
! thing effective with the corporation
question, we must make an advance
on our present legislation. The prac-
! teal 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 competition. To do this
We must recognize concentration, su-
\ IL
we must have a system of efficient
publicity. This is the strongest means
| for our purpose. Efficient publicity
means that sort Of publicity which
reaches the average citizen under
every day conditions. A permanent
office, after collecting material must
also summarize it for the public. in
brief clear and reliable conclusion,
showing important permanet corpor-
ate tendencies.
| THE control by the federal govern
ment (of corporations) should be
! broadeneG into a general construc-
! tive system based on tested principles
of supervision, publicity, and CO.
/ operation. The details of such sys-
TEN in its main features should be as
! follows
1T should be operated by the fed
eral government.
1T should provide for a system
of regular reports from the large
interstate corporations.
"Such government office should
have access at all reasonable times to
, the records and accounts Of such cor
pOratlOns.
THAT office should publish con-
clselS the important 1dctS ulSclOSeu.
1t should safeguard from publication
all business secrets.
Corporations complying with these
requirements should be given the ad-
vantage Of a definite federal registra-
tion.
THE system should, If possible, be
voluntary
Finally supervision must be ad
mnistrative. No other method has
the necessary flexibility.
1--WE must have a system of super
vision which provides a working basis
for conference and cooperation and
which does not rely merely on crimi-
nal procedure and opposition. There
Is not only a change in the attitude Of
business leaders. There is also an
aroused and intelligent demand from
the public for fair business methods,
and for equal commercial opportunity
for all. The future of the nation must
depend largely upon the stability of
its business machinery That ma
chinery cannot be permanent or sue
cessful unless II operates openly and
justly 1t must place and keep in
control of our great commercial
forces men who have risen there