Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-01-07

I NUMBER OF QlucrenI states.
To the suggestion that this proposal
of federal Incorporation for industrial
combinations is intended to furnish
them a refuge in which to continue in
dustrial abuses under federal protec-
ton, it should be said that the measure
contemplated does not repeal the Sher-
| man Antitrust 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 advance of the high
est industrial efficiency without permit
ting industrial abuses.
Such a National Incorporation law
will be opposed, first, by those who be-
! lieve that trusts should be completely
broken up and their property des-
stroyed. It will be opposed, second,
| by those who doubt the constitutional
| ity of such federal Incorporation and
even if il is valid, object to it as too
great federal Capitalization. 1t will be
opposed, third, by those who will in
sist that a mere voluntary incorpora-
! tion like this will not attract to its ac-
ceptance the worst of offenders against
the antitrust statute and who will
therefore, propose instead of it a sys-
TEN OF compulsory license fer all
federal corporations engaged in inter
state business.
Let us consider these objections in
their order The government is now
trying to dissolve some of these COM
| binations and il is not the intention
of the government to desist in the
least degree in it's effort to end these
combinations which are today monop-
olizing the commerce of this country.
But it is not and should not be the
policy of the government to prevent
reasonable concentration of capital
which is necessary to the economic
development Of manufacture, trade
and commerce. If we would main
tain our present business supremacy
we should give to Industrial concerns
an opportunity to reorganize and con-
centrate their legitimate capital in a
federal corporation.
Second, there are those who doubt
the constitutionality of such federal
incorporation. The regulation of in
terstate and foreign commerce is GER
tainly conferred in the fullest meas
ure upon congress, and If for the pur-
pose of securing in the most thorough
out manner that kind of regulation
congress shall insist that it may pro-
vide and authorize certain agencies to
carry on that commerce it would seem
to be within it's power. This has been
distinctly affirmed with respect to rail-
road companies doing an interstate
business and interstate bridges. The
power of Incorporation has been exer-
cised 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 commerce, may the same
power not be asserted.
Even those who are willing to con-
cede that the supreme court may sus-
tain such federal incorporation are in
clined to oppose II on the ground Of
its tendency to the enlargement of
federal power at the expense of the
power of the states. 1t is a sufficient
answer to this argument to say that
no other method an be suggested
which offers federal protection on the
one hand and close federal supervision
on the other of these great organiza-
tons that are in fact federal because
they are as wide as the country and
are entirely unlimited in their bust
ness by state lines. Nor is the CEN
traliZation of federal power under this
act likely to be excessive Only the
largest corporations would avail
themselves of such a law, because the
burden of complete federal supervision
and control that must certainly be
imposed to accomplish the purpose of
the incorporation would not be accept
ed by an ordinary business concern
The third objection, that the worst of
tenders will not accept federal incor-
poration. is easily answered. The de-
crees of injunction recently adopted in
prosecutions under the antitrust law
are so thorough and sweeping that the
corporations affected by them have but
three courses before them.
First, they must resolve themselves
into competent parts in the different
states, with a consequent loss TO them
selves of capital and effective organi-
cation and to the country of concen-
trated energy and enterprise, or, sec
ond, in defiance of law and under some
secret trust they must attempt to con-
tinue their business in violation of the
federal statute and thus incur the pen
alties of contempt and bring on an in
evitable criminal prosecution of the
individuals named in the decree and
their associates, or third, they must
reorganize and accept in good faith the
federal charter l suggest
A federal compulsory license law,
60
corporation law is unnecessary except
to reach that kind of corporation.
which. by virtue of considerations al
ready advanced, will take advantage
voluntarily of an incorporation law,
while the other state corporations do.
ing an interstate business do not need
the supervision or the regulation of a
federal license and would only be I'M
necessarily burdened thereby.
The attorney general. at my sugges. /
ton, has drafted a federal corDoration .