Daily Arizona silver belt., 1909-02-03
INVESTIGATIONS 0F INDUSTRIES IN
 PROGRESS
so REPORTS HERBERT K. SMITH,
 COMMISSIONER OF CORPORA TONS, IN SUMMARY.
SCOPE OF WORK VERY VARIED
MANY RECOMMENDATIONS MADE FOR CONTROL or INDUS
 TRIAL COMBINATIONS.

WASHINGTON, D. C., February s.--- Commissioner Herbert Knox Smith of the bureau of corporations, today sub mittcd to Secretary Straus, of the De annual report of the operations of bis bureau for the year ended 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 var jed than during any similar period since the establishment of tho department of commerce and labor. During the year Commissioner Smith directed investiga- tions of many important industries and he now has on hand as current work, in. quiries into the tobacco industry, steel industry, International Harvester com pany, lumber industry, cotton exchang es, and water transportation.
 The most important legal work of the bureau in the last fiscal year was in connection with bill for the amend ment of the Sherman law A large | amount of work also was done in hiding the department of justice in the prep aration for trial of cases against the Standard Oil company for alleged prac- tiee of discriminations in railway rates. Discussing the general subject of cor porate regulation and control, Commis sioner Smith says:
 "There is an Irresistible movement | toward concentration in business. We must recognize the fact that industrial concentration is already largely accom- plished, in spite of general statutory prohibition. The aim of new legisla- tion should be to regulate, rather than to prohibit combination. It is an ob- vious absurdity to attempt to do both at the same time, and prohibition has practically failed. Our present law, for, bidding all combination, therefore needs adaptation to the actual facts. If we are to do anything effective with the corporation question, We must make an advance on our present legislation. The practical object is to see that business opportunity and the highways of com merce are kept equally open to all; to prevent fraud, special privilege and un. fair competition. To do this we must recognize concentration, supervise it, and regulate it. Above all We must have system of efficient publicity. This is the strongest means for our pur- pose. Efficient publicity means that sort of publicity which reaches the av- craze citizen under every day condi- tions. A permanent office, after collect ing material, must also summarize it for the public, in brief, clear and re- liable conclusion, showing important permanent corporate tendencies. 1.-The control by the federal govern ment (of corporations) should be broadened into a general constructive system based on tested principles of supervision, publicity and cooperation. The details of such system in its main features should be as follows:
 :" It should be operated by the federal government.
 ''lt should provide for 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 corpora tions.
 "That office should publish concisely | the important facts disclosed It should safeguard from publication all business | secrets.
 Corporations complying with these requirements should be given the advan- tage of definite federal registration.
 "The system should, if possible, be voluntary.
 Finally, supervision must be admin istrative. No other method has the nee. essary fexibility
 We must have system of super vision which provides working basis for conference and cooperation and which does not rely merely on crimi- nal procedure and opposition. There is not only change in the attitude of business leaders, there is also an aroused 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 it's busi- ness machinery. That machinery cannot be permanent or successful unless it operates openly and justly. It must place and keep in control of our great commercial forces men who have risen there solely by superior industrial ef- ficiency It must protect such men from the competition of those who get power by unfair and illegal methods and priv. ileges, practices that rely peculiarly on secrecy. To do this the government must have such supervision and control of that corporate machinery as will maintain. in business the fundamental American ideal of equal opportunity to