The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-02-03
DIRECTED INVESTIGATIONS
or IMPORTANT INDUSTRIES
Commissioner RecO mnends
Regulation Rather ThaG Pro-
hIbItiOn Of Combinations

Washington, ID, G.. Feb 3~-Jonlmia'
aloner Herbert Knox Smith. Of the
bureau Of corporations, today submit.
Ted TO Secretary Straus, OF the depart
mpnt Of commerce and labor, the an.
nual report Of the operations OF his
bureau for the year ended June 30th
1908, Ia an respects, Il Is The most
important report yet submitted by
the bureau OF corporations, The work
OF the bureau during tue last fiscal
year was more varied than during
any similar period since the estah
lIshment OF the department Of COM
morce and labor. During the year
Commissioner Smith directed inyestl
cations or maay important industries
and he row has on hand rs current
work Inquiries into the tobacco ~.
duatry steel industry, International
Harvester company. lumber industry
cotton exchanges and water transpor'
tatlon.
THE most important legal work OF
the bureau IN the last fiscal year was
In connection with bill for the
amendment Of the Sherman law a
large amount OF work also was done
In aiding the department Of Justice
in Che preparation for trial Of cases
against the Standard on company for
alleged practice Of determinations 81
railway rates.
urpea Supervision.
Discussing The general subject OF
corporate regulation and control. Com
missioner Smith says
There ii an irresistible movement
toward concentration IN business We
must recognize the net thai Indus
trial concentration Is already large
~ accomplished. In spite OF general
statutory prohibition The aim Of
new legislation should be 10 regulate
Father than 10 prohibit combination. VI
% an obvious absurlity 10 attempt 10
do both al the same time, and nrohl.
billion has practically failed. our pres
ent law. forbIddlng an combination
therefore needs adaptation to the act.
ual facts. II we are 10 DO anything
effective with The corporation ques'
ton. We must make an advance on
our present legislation, the practical
0bieet IS 10 see that business Oppor
iunlty and the highways OF commerce
are kept equally open to AT. II pre-.
vent fraud, special privilege ana MI
fair competition, TO DO this. we must
recognize concentration. supervise II,
and regulate It. Above an, we must
have system Of efficient publicity
This is the strongest means for our
purpose Efficiency publicity" means
that sort OF publicity which reaches
the average citizen under every day
conditions. A permanent office. az.
ter collecting material, must also aum.
marize Il for fne public, in brief.
clear and reliable conclusion showing
important permanent corporate ten.
denciee
Commissioner Suggests Details
"The control by the federal oFern.
ment tof corporall0na1 should DO
biOadeued into a general eonsrur,
tive system based on tested princl,
piles Of supervision, publicity. ana co.
operation The details Of such a sys.
tenn IN It smaln features should be as
foIiowa
II should BE- operated by IN, fed.
eral government
II should provide for a system OF
regular reports from the large III.
tefstate corporalions
esuch government office should
nave aeeoss al al reasonable thncs
% the records and accounts of such
corporations.
eThe office should publish concise.
" the important facts disclosed h
shouM safeguard from publication al
bnslnbsH secrets.
f'orHofatioffB complying wllh these
Requirements should be given tie ai.
va'q'gs " seanite federal regis
The system should. aflp0sHiblh. be
voluntary,
Finally. supervision must De 81.
mlnistfatlye No other method has
the necessary fexlbnIty
We must have a system OF super
vision which provides a working basis
fof conference and cooperation and
which docs nor eeiy merely on Grim.
Firal Procedure and opposition There
II not only change IN The attitude
el busIness leaders There Is also
m nruuaed an dinlellgeni demand
from the public iof iaIf business meth
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