Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-02-18
CONTROL
NEEDED TO SAVE
i. S., SAYS NAGEL
Sec. of Commerce and Labor De-
clares Government Regulation
of Corporations Must Come.

CHICAGO, Feb. 1S.-Federal control
of corporations is necessary to the
commercial preservation of the ooun-
try, declared Charles Nagel. secretary
of commerce and labor of the United
States, in an address before the Indus
trial Club here last night.
As to the power of the national gov
eminent to authorize the organization
of Federal corporations, Mr.. Nagel said
there could be no question. The exist
ing system of c~lashing State laws-'.a.
system on all sides at war with itself"
he regarded as intolerable, and he
assured his hearers that the conse-
quence of a Federal corporation law
such as President Taft had proposed
could make for nothing bat the general
good.
The purpose of the government to
regulate the corporations, in the opin-
ion Of the secretary, could not be con-
sidered as an attempt to encroaeh upon
State authority, but as a determination
TO "employ old authority for the solu-
ton of new problems" A change of
attitude regarding the relation of ma
tional to State authority, he believed,
had come over the country with the
development of problems too big for
the State individually to meet.
Among the more important prob
lems," said Secretary Nagel, appears
TO be the question whether or not the
national government may and should
authorize and regulate the %organiza-
ton INT conduct of Federal corpora
tions. Only a few years ago the bare
suggestion of such an idea filled the
| public with dismay. The authority was
denied and the policy was questioned
Today the irreconcilable conflicts tc
which ordinary business organizations
are subjected in our States have forced
a general recognition that something
must be done to relieve the situation.
1.-THE idea is not limited to any par
ticular locality of our country or tc
any special class. From all parts. East
and West. North and South. city and
country, come the suggestions that
some relief upon these lines must bt
worked ut. The proposition has now
been %squarely put before the country
The President of the United Stat s has
made a distinct recommendation in {
message, calling attention to the needs
and submitting for consideration {
form to which Legislators and constit'
uents may give their attention"
As to the apprehension that a Fed
eral corporation statute would permi
large concerns to escape some of thu
laws inhibitions provided against then
the secretary had no fear.
IF the mere amount of capital" h
said, "is in itself to be recognized a
an objection, then there is no reasol
why the Federal law should not fl,
such a limit as may be found eason
able and safe. But it is believed tina
the real objection to large corporation
in our country oes to the monopolisti
character of the concerns. In that re
spect a Federal corporation law woul
prove. in my Judgment, infinitely NOR
effective than have the spasmodie, in
harmonious attempts of individual
States.
II believe. to summarize, that Their
is no question whatever about the au
thority of the Federal Congress to pro
vide for the organization of CONNER
cial corporations which may b
equipped TO i~ntelligently develop do
nestle and to protect our III
terests in foreign countries. l have n
question that the existing system
which on all sides is at war with itseli
has become in~tolerable, and that moth
ing but the untold wealth of u coun
try can accoun for our ability to hol
our w as long as we have these con
ditions.
u am persuaded that the creation G
such corporations, Immediately respon
sive TO an authority which can dee
with them ON all sides, will make onl
for good"