The state herald., 1910-01-14
able or can b. introduced into the stat

I'm considering violations OF the anti
trust law we ought Of course. not to
forget that that law makes unlawful.
methods of carrying on business which
before Its passage were regarded as evil
and that they We're denounced in this act
not because OF their intrinsic immoral
lily. but because of the dangerous re-
suits toward which they tended. the con- Or.
hands OF the few leading to oppres-
sion and injustice. In dealing. therefore.
with many, Of the men who have used
the methods condemned by. the statute
for the purpose of maintaining a profit
able business, we may well facilitate q
change by them In the method of do
back into the zone OF lawfulness. without
losing to the country the economy Of
management by which. in our domestic
trade the cost of production has been
with foreign manufacturers our foreign
trade has been greatly increased.
Asks National Corporation Law.
II therefore recommend the enactment
by congress of a general law providing
for the formation of corporations to en-
gage in trade and commerce among the
states and with foreign nations. protect
ing them from undue interference by the
states and regulating their activities 30
as to prevent the recurrence. under ma
tionnl auspices. OF those abuses which
have arisen under state control. Such a
law should provide for the issue of stock
of such corporationas to an amount equal
only to the cash paid in on the stock,
and II the stock be issued for property.
then at n fair valuation ascertained un.
der approval and supervision of federal
authority after full and complete dis
closure OF all the facts pertaining to the
value of such property and the interest
therein of the persons to whom 1t Is
proposed to issue stock in payment of
such property. II should subject the real
and personal property only OF such cor
porations to the same taxation as i'm
posed by the states within which II may
be situated upon other similar property
located therein. and 1t should require
such corporations to file full and COM
plete reports of their operations with the
department OF commerce and labor at
regular intervals. Corporations organized
under this act should be prohibited from
acquiring and holding stock In other cor
porations Except for special reasons upon
approval by the proper federal author
ity), thus avoiding the creation. under
national auspices, OF the holding company
states which has been such effective
agency In the creation of the great trusts
and monopolies.
State Laws Conflict.
"If the prohibition OF the antitrust act
against combinations in restraint of trade
is to be effectively enforced. II Is essen
tial that the national government shall
provide for the creation OF national cor
porations to carry on a legitimate busi-
ness throughout the United States. The
the union with respect TO foreign corpora
tons make II difficult, II not impossible
for one corporation TO comply with thcir
requirements as to carry on business
In "A number OF different states.
ITO the suggestion that this proposal Of
federal incorporation for Industrial COM
binntions is Intended to furnish them a
refuge in which to continue industrial
business under federal protection. II
should be said that the measure contem-
plated does not repeal the Sherman anti
law and ia he framed ~ \
10 permit the doing OF the wrongs which
II IL the purpose OF that law to prevent
but only TO foster continuance and ad-
vance OF the highest Industrial efficiency
without permitting Industrial abuses.
such "a national Incorporation law will
be opposed, first. by those who believe
that trusts should be completely broken
up and their property destroyed. II Will
be opposed. second. by those who doubt
the constitutionality OF such federal In
corporation and even II II is valid, object
to II MS too great federal Capitalization
II will be opposed. third. by those who
Will insist that a mere voluntary incor-
porntion like this Will not attract TO It's
assistance the worst OF tho offenders
ag inst the antitrust statute and who
viii therefore propose Instead of u a sys.
tom Of compulsory licenses for all fcder-
ri corporations engaged In interstate
business.
Let US consider these objections In
their order. The government Is now try
Ing 70 dissolve some OF these combinn-
AlbNN u ~ Ntt inc lnttNuou OF inc
government to dcsist In the least degree
I'm It's effort to end these combinations
which are to-day monopollzlng the com
mcrcc of this country: that where II APP
pears that the acquisition and conccn-
tration OF property go 10 the extent Of
creating monopoly OF substantially and
directly restraining Interstate commerce,
u In not the Intention OF the government
10 permit this monopoly to exist under
federal Incorporation or 10 transfer 10
the protecting wing OF the federal gov
crnmen OF a state corporation now vio-
lRtlnH the Sherman act. hut II is not.
and should not he. the policy OF the gov
eminent to prevent reasonable concen-
tratlon OF capital which IN necessary To
the economic development of manufac-
ture. trade and commerce.
May Doubt constitutionaIity.
''second-Thero are those who doubt the
eonstitutionality OF such federal ineorpor-
alton. The regulation OF Interstate and
foreign commerce In certainly conferred
In the fullest measure upon congress. and
II for the purpose OF securing In the mos,
thorough manner that Kind OF regulation,
congress shall insist that II may provide
and authorize agencies to carry on that
commerce, II would seem 10 be within its
power, this has been distinctly af1rmed
with respect 10 railroad companies doing
an Interstate business and interstate
bridges The DoWer of Instrumentation hur