The Norfolk weekly news-journal., 1910-01-14

tent principle which viii insure the
uniformity of decision essential to just
Judgment; II is to trust upon the
court burden that they have no pre-.
Codents to enable them to carry, and
to give them power approaching the
arbitrary, the use of which might In.
volve our whole judicial system In
disaster
| II the prohibition of the antitrust
act against combinations in restraint
of trade is to be effectively enforced,
it is essential that the national govern.
ment shall 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 foreign corporations
make il difficult if not impossible, for
one corporation to comply with their
requirements so as to carry ON bust
ness in different states.
New Plan No Refuge for Bad Trusts.
Regarding the suggestion that this
, proposal of federal incorporation for
industrial combinations is intended to
. furnish them refuge in which To
continue industrial abuses under fed
= eral protection, ii should be said that
the measure contemplated does not
f repeal the Sherman antitrust law and
. is not to be framed so as to permit
the doing of the wrongs which ii is
the purpose of that law to prevent,
T but only to foster a continuance and
q advance of the highest industrial eff
. fciency without permitting industrial
y abuses.
Such a national incorporation law
will be opposed. first, by those who be-
lieve that trust should be completely
= broken up and their property destroy
, ed II will be opposed second, by
u those who doubt the Constitutionality
a of such federal incorporation and even
: IL it is valid, object to it as too
great federal Capitalization. 1t will
: be opposed, third by those who will
; insist that a mere voluntary incorpora-
ton like this will not attract to its
Il acceptance the worst of the offenders
: against the antitrust statute and who
{ will therefore propose instead of it
; system of compulsory licenses for
= all federal corporations engaged in
interstate business.
, Let us consider these objections in
their order The government is now
~ trying to dissolve some of these COM
:, binations and it is not the intention
least degree in it's effort to end those
;. combinations which are today monOpo-
;. liZing the commerce of this country;
that where it appears that the aCquisi-
= ton and concentration of property go
= to the extent of creating a monopoly
Il or of substantially and directly re-
q Straining interstate commerce, it is
q not the intention of the government
!. to permit this monopoly to exist under
i federal incorporation or to transfer
~ to the protection of the federal gov
y, eminent of the state corporation now
- violating the Sherman act But it is
a not, and should not be, the policy of
y the government to prevent reasonable
, concentration of capital which is ne
, cessary to the economical development
. of manufacture trade and commerce.
q For Federal incorporation Law.
" | therefore recommend the enact
: ment by congress of a general law
providing for the formation of cor
L. porations to engage in trade and com
y merce among the states and with for
y eign nations. protecting them from I'M
n due interference by the state and regu-
?, lating their activities, so as to prevent
6 the recurrence, under national aus
pices, of those abuses, which have
It arisen under state control. Such a
l. law should provide for the issue of
D. stock of such corporations to an
l, amount equal only to the cash paid
< in on the stock; and if the stock be
S issued for property, then at fair
e valuation, ascertained under approval
e. and supervision of federal authority,
l. after full and complete disclosure of
all of the facts pertaining to the value
is of such property and the interest
If therein of the persons to whom it is
proposed to issue stock in payment
1t of such property.
l. Second. There are those who doubt
e the constitutonality of such federal
it incorporation. The regulation of in
S ter-state and foreign commerce is GER
n tainly conferred in the fullest meas
ure upon congress.
IS The third objection, that the worst
n offenders will not accept federal in
e corporation, is easily answered. The
is DEGREES of injunction recently adopted
1t in prosecutions under the antitrust
n law are so thorough and sweeping that
c. the corporations affected by them have
If but three alternatives before them:
t. First, they must resolve themselves
S into their component parts in the diff
o. ferent states with consequent loss to
p themselves of capital and effective
IS organization and to the country of con-
e. centrated energy and enterprise, or
IS Second, in defiance of law and under
E. some secret way they must attempt to
continue their business in violation of
l. the federal statute and thus incur
y the penalties of contempt and bring on
e an inevitable criminal prosecution of
st the individuals named in the decree
e and their associates; or
1t Third, they must re-organize and
y accept in good faith the federal char,
e ter issuing.
d The attorney general at my sugges.
tions. has drafted federal incorpora-
n. ton bill, embodying the views ! have
j. attempted to set forth, and it will at
= the disposition of the appropriate com.
e mittees of congress.
!" Signed,
s. William II. Taft
It "The White House, January I, $40"
u FRIDAY FACTS.