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

ana unnecessary invasion by the states.
it shall subjec< it to reasonable taxation
and control T.. she states, with respect to
its purely local :a.ssiness.
Many peopk~ conducting great bust
! nesses have clGesshed a hope and be-
lief that in some way or other a line
may be drawn between good trusts and
bad trusts" and that it is possible by
amendment to the antitrust law to make
a distinction under which good combina-
tons may be permitted to organize, sup
press competition, control prices, and do
| it all legally if only they do not abuse
the power by taking too great profit out
of the business. They point with force to
certain notorious trusts as having grown
into power through criminal methods by
the use of illegal rebates and plain cheat
ing, and by various acts utterly violative
of business honesty or morality and urge
the establishment OF some legal line OF
separation by which criminal trusts"
of this kind can be punished, and they,
on the other hand, be permitted under
| the law to carry on their business. Now,
the public, and especially the business
public, ought to rid themselves of the
idea that such a distinction is practic-
ute.
Certainly under the present antitrust
| law no such distinction exists. 1t has
been proposed, however, that the word
| reasonable should be made g part of
the statute and then it should be left to
the court to say what is a reasonable
restraint Of trade, what is a reasonable
suppression of competition, what is a rea-
sonable monopoly. I venture to think that
I - ~
court power impossible to exercise on
any consistent principle which will in
sure the uniformity of decision essential
| to just Judgment 1t is to thrust upon
the courts a burden that they have no
precedents to enable them to carry, and
to give them power approaching
arbitration, the abuse OF which might
! involve our whole judicial system in dis
aSter.
An Aid to Business Virtue.
In 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
dence of business sagacity and success,
and that they were denounced in this act
not because of their intrinsic immoral
ity, but because of the dangerous re-
suits toward which they tended, the con-
centration of industrial power in the
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 we'll facilitate a
change by them in the method of doing
business, and enable them to bring it
back into the zone of lawfulness, with
to hn tLa
of management by which. in our domestic
trade the cost of production has been
materially lessened, and in competition
with foreign manufacturers our foreign
trade has been greatly increased.
Through all our consideration of this
grave question, however, we must insist
| that the suppression of competition the
controlling of prices, and the monopoly
or attempt to monopolize in interstate
commerce and business are not only I'M
lawful, but contrary to the public good,
and that they must be restrained and
punished until ended.
Asks National Corporation Law.
I 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
so as to prevent the recurrence, under
national auspices, of those abuses which
have arisen under state control Such
a law should provide for the issue of
stock of such corporations to an amount
equal only to the cash paid in on the
stock; and if the stock be issued for
property then at fair valuation ascer-
tanned under approval and supervision of
federal authority after a full and COM
plete disclosure of all the facts pertain
ing to the value of such property and the
interest therein of the persons to whom
it is proposed to issue stock in payment
of such property. 1t should subject the
real and personal property only of such
corporations to the same taxation as i'm.
posed by the states within which it may
be situated upon other similar property
located therein, and it 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
lty), thus avoiding the creation, under
national auspices, of the holding COM
pany with subordinate corporations in
dlHerent states which has been such an
effective agency in the creation of the
great trusts and monopolies.
If the prohibition of the antitrust act
against combinations in restraint of
trade is to be effectively enforced, 1t is
essential that the national government
snail provide for the creation of national
corporations to carry on a legitimate
business throughout the United States
The conflicting laws of the different
states OF the union with respect to for
eign corporations make it difficult, il not
impossible, for one corporation to comply
with their requirements SO as to carry
on business in a number of different
states
To the suggestion that this proposal OF
federal incorporation for industrial COM
binations is intended to furnish them g.
refuge in which to continue industrial
business under federal protection. It
should be said that the measure contern-
plated does not repeal the Sherman anti
trust law and is not to be framed SO as
to permit the doing of the wrongs which
it is the purpose Of that law to prevent,
but only to foster a continuance and adj
vance OF the highest industrial efficiency
without permitting industrial abuses
such national incorporation law VIII
be opposed first, by those who believe
that trusts should be completely broken
up and their property destroyed. 1t will
be opposed, second, by those who doubt
the constitutionality of such federal in
corporation and even if it is valid, object
to it as too great federal Capitalization.
It will be opposed, third, by those who
will insist that a mere voluntary incoT-
poration like this will not attract to it's
assistance the worst Of the offenders
against the antitrust statute and who
will therefore propose instead of 1t a sys-
tenn of compulsory licenses for all fed
eral corporations engaged in interstate
business.
Let us consider these objections in their
order. The government is now trying to