The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1910-01-13

arTon. me regu.Ic.on OF interstate and
foreign commerce is certainly conferred
in the fullest measure upon co$-eress, and
II for the purpose of securing in the most
thorough manner that kind of regulation,
congress shall insist that it may provide
and authorize agencies to carry on that
commerce, It would seem TO be within it's
power this has been distinctly affirmed
with respect to railroad companies doing
an interstate business and interstate
bridges. The power of incorporation has
been exercised by congress and upheld
by the supreme court in this regard.
Why, then, with respect to any other
form OF interstate commerce like the sale
Of goods across state boundaries and into
foreign countries, may the same power
not be asserted? Indeed, it is the very
fact that they carry on interstate COM
merce that makes these great industrial
concerns subject to federal prosecution
and control. How far as Incidental to
the carrying on of that commerce it may
be within the power OF the federal gov
eminent to authorize the manufacturer OF
goods. is perhaps more open to discus
sion. though a recent decision of the su-
preme court would seem to answer that
question in the affirmative.
Even those who are willing to concean
that the supreme court may 81 stain such
federal Incorporation are inclined to on
pose it on the ground of its tendency to
the enlargement of the federal power ST
the expense of the power of the state.
It is a sufficient answer to this argument
to say that no other method can be sus-
gested which offers federal protection ON
the one hand and close federal supervi-
sion on the other of these great organi-
cations that are in fact federal because
they are as wide as the country and are
entirely unlimited in their business nv
state lines. Nor is the Capitalization Of
federal power under this act likely to ha
excessive. Only the largest corporations
would avail themselves of such law. be-
cause the burden of complete federal SUI
pervision and control that must Certainly
be imposed to accomplish the PURPOSE Of
the incorporation would not be accented
by an ordinary business concern. The
third objection, that the worst offenders
Will not accept federal incorporation. is
easily answered. The DEGREES of ini,Inc-
ton recently adopted in prosecutions I'M
der the antitrust law are so thorough
and sweeping that the corporations at
fected by them have but three coursaw
before them:
First, they must resolve themseIves
into their component parts in the differ
ent states. with consequent loss to
themselves Of capital and effective organ
ization and to the country of concen-
trated energy and enterprise; or second
in defiance of the law and under some
secret trust they must attempt to con-
tinue their business in violation Of tha
federal statute. and thus incur the mem
alties of contempt and bring on an in
evitable criminal prosecution of the indi-
viduals named In the decree and theiY
associates; or
Third, they must reorganize and accent
in good faith the federal charter T sug-
gest a federal compulsory license law
urged as substitute for a federal incor
poration law, is unnecessary except to
reach that kind of corporation which. bv
virtue of the considerations already adj
vanced, will take advantage voluntarily
of an incorporation law, while the other
state corporations doing an Interstate
business do not need the supervision or
the regulation of federal license and
would only be unnecessarily bufdened
thereby.
The attorney general, at my suggestion.
has drafted federal Incorporation law.
embodying the views I have ATTEMPTED
60 set forth and it will be, at the disposi-
ton of the appropriate committees Of
congress.
WILLIAM H. TAFT.
The White House, Jan. {, 1870