The Birmingham age-herald., 1909-02-05
SMITHS REPORT
 ON CORPORATIONS
Commissioner Has Investigated
 Many industries
COMBINATIONS NEEOFUL
MT. Smith Declares That the Sherman Antitrust Law Should Be Amend ed, as Certain Parts of It
 Cannot Be Enforced.


 Herbert Knox Smith of the bureau of Strauss of the department of commerce and labor the annual report of the oper- ations of his bureau for the year ending June 30, 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 during any similar period since the establishment of the de- pertinent of commerce and labor. During the year Commissioner Smith directed in- vestigations of many important industries and he now has on hand as current work, inquiries into the tobacco indus try, steel industry. International Har- vester company, lumber industry, cotton exchanges and water transportation.
 The most important legal work of the bureau in the last fiscal year was in con nection with a bill for the amendment of the sherman law. A large amount of work also was done in aiding the depart ment of justice in the preparation for trial of cases against the Standard Oil com pany for alleged practice of discrimina- tions in railway rates.
 Corporate Control.
 Discussing the genral subject of cor porate regulation and control, Commits sioner Smith says:
 There is an irresistible movement to- ward concentration in business. We must recognize the fact that industrial concen- tration is already largely accomplished, in spite of general statutory prohibition. The aim of new legislation should be to regulate, rather than to prohibit com bination. It is an obvious absurdity to attempt to do both at the same time, and prohibition has practically failed. Our present law, forbidding all combination, therefore, needs adaptation to the &C., tual facts. If we are to do anything ef- fectiye with the corporation question we must make an advance on our present leg islation. The practical object is to see that business opportunity and the high ways of commerce are kept equally open to all to prevent fraud; special privilege and unfair competition To do this we must recognize concentration, supervise it, and regulate 1t. Above all we must have system of efficient publiicty. This is the strongest means for our purpose. Elf ficient publicity means that sort of pub licity which reaches the average citizen under every day conditions. A perm anent office after collecting material, must also summarize it for the public, in | brief, clear and reliable conclusion, show | ing important permanent corporate ten l dencies.
 General System. "The control by the federal government | (of corporations) should be broadened into a general constructive system based on tested principles of supervision, publicity and cooperation. The details of such 0 I system in it's main features should be as follows:
 'It should be operated by the federal | government.
 Tt should provide for a system of reg ular reports from the large interstate | corporations
 Such government office should have access at all reasonable times to the records and accounts of such corpora 1 tions.
 That office should publish concisely the important facts disclosed. It should safeguard from publication all business secrets.
 Corporations complying with these re- l quirements should be given the advantage of definite federal registration.
 "The system should, if possible, be voluntary.
 1 Finally, supervision must be admins | trative. No other method has the neces sary hexibilty.
 Supervision Plans. "We must have a system of supervision ] which provides a working basis for con 1 ference and cooperation and which does not rely merely on criminal procedure and opposition There Is not only a change in the attitude of business leaders. There is also an aroused and intelligent de- mand from the public for fair business 1 methods and for equal commercial op- portunity for all. The future of the na- l ton must depend largely upon the sta l bility of it's business machinery. That 1 machinery cannot be permanent or suc- i cessful unless 1t operates openly and just ly. It must place and keep in control of l our great commercial forces men who l have risen there solely by superior in i dustrial efficiency. It must protect such men from the competition of those who get power by unfair and illegal methods and privileges-practices that rely pe- l culiarly on secrecy. To do this the gov ernment must have such supervision and | control of that corporate machinery as i will maintain in business the fundamental 1 American ideal of equal opportunity to