The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1910-02-18
BETTER STANDING FOR COR
PORATIONS IF PEOPLE
KNEW.
c Commissioner Smith Outlines a
Plan to Bring About Federal
Supervision Which Involves No
Drastic Action Federal Con-
troll Imperative.

Washington, Feb. 12.-That great
Interstate industries can be brought
under permanent federal supervision
through system of regular reports to
q federal agency, in rational, effect
i've way, which will involve no drastic
action, but, on the contrary, will fore
stall it. is thee onclusion drawn in the
annual report of Herbert Knox Smith,
commissioner of corporations to the
secretary of commerce and labor. just
made public.
PUBLICITY will improve the stand
ing of our corporate securities both at
home and abroad" Mr.. Smith declares,
land will help give our business ma
chinery that foundation of fairness and
opennesss and public confidence which
it must have if it is to be a permanent
factor in our national advance.
cit will bring together the govern
ment and the corporate manager in
conference and cooperation, which
alone can serve to adjust continuously
the complex and changing relationship
between our business forces and the
public welfare. -
Mrv. Smith contends that already,
under public condemnation, made pos
sible by facts plainly stated, great cor
porate abuses have been abandoned.
He says that giant system Of railroad
rate determinations has been wiped
out and numerous forms Of commercial
oppression diminished. Corporate man
ayers themselves, says Mr.. Smith, are
frankly advocating a more open ac-
counting. Continuing, he says:
Outlines Plan of System
''The situation is thus ready for a
complete system where G) all import
shall regularly make reports to fed
eral agency; where (2) that agency
shall have the further right to verify
and extend the facts presented; where
(3) business transactions of public in
terest shall be made public, safeguard
ing at the same time all proper bust
ness secrets; where az there will be q
permanent meeting ground for coop
GRAFTON and adjustment between the
government and business interests, and
(5) whereby those corporations that
deal fairly and openly shall CORES
pondingly acquire public confidence
and support.
,''The exact form of this system IS Of
little Importance. The information
must be had for the primary purposes
of the government and the citizen. Co.
operation must also be had, publicity
should as far as possible be voluntary.
Corporate managers are recognizing
the value of government publicity. To
profit by this new spirit, the system of
supervision must provide for co-opera-
ton. Prosecution is indeed necessary
to destroy unfair methods, but it should
be reserved as the last resort rather
than used as the normal instrument.
In short, our great interstate industries
must come under permanent national
supervision.
Federal Action Imperative
"The corporation has concentrated
enormous commercial power in the
hands of a few men. At the same time
it has lessened their personal response
bility for the proper use of that power.
Sense of personal obligation to the
community becmes submerged in vast
corporate entities. The resulting abuses
call for some restraint that shall take
the place of te old personal obligation.
Government supervision and publicity
Of corporations must be that substitute.
"The issue is national; action by
the federal government is imperative
under its unquestioned power and duty
to regulate interstate commerce. The
federal government is the only ade-
quate authority; one of the primary
motives for it's creation was for ma
tional control of national business
Those directing our great corporations
have deliberately nationalized them in
size and scope; they cannot now be
heard to object to q centralized control
which they themselves have made nee
essary. They have made their bust
ness truly governmental in their effect
on the people. They cannot now deny
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