The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1910-01-15

Methods Of carrying on business which
6sfors ~ passsss wsrs rs,IfSSd . ~ ~
s sss shss tSsy 1 wsss dsncaScsd n Tile ct
not because or their intrinsic immoral
ity: but beceuse Of the dengerous re-
c csss Grsrs q wnSa : power IL the
sion and injustics. II decline. thsrsfores
he msthods =. conS s 81 yo the s ststuts
for the purpose Of maintaining profit
able buslnsss Ne may we'll faciiitete =
Ing business ~ and and e n them 70 bring {
back into the zone Of lawfulness withouS
losing TO the country the economy ?f
trade trade the cost Of production has been
with foreign manufacturers our foreign
trade has been greatly Increased.
Asks National Cooperation Law.
II therefore recommend the enactment
by congress Of general law providng
sor the formation q coTpcrstl "mon % the
states and with foreign nations, protect
ing them from undue interference by the
states and regulating their activities 10
tional auspices. of those abuses which
have arisen under state control. Such 9
law should provide for the issue OF stock
only to the cash paid In on the stock;
and II the stock be issued for property.
then at fair valuation ascertained un,,
asf after ana 5 and Complete d
closure of all the facts pertaining. to the
value OF such property and the interest
therein of the persons to whom II is
proposed to issue stock In payment OF
such property. 1t should subject the real
and personal property only OF such cor
porations to the same taxation as Inn
Be situated upon other similar property
located therein, and II should require
such corporations to file full and com
plete reports OF their operations with the
regular intervals Corporations organised
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 an 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
II 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 bust
ness throughout the United States. The
conflicting laws of the different states OF
the union with respect to foreign corpora
lions make II difficult II not Impossible,
for one corporation to comply with their
requirements so as to carry on business
in a number OF different states.
ITO the suggestion that this proposal OF
federal incorporation for industrial COM
binations Is Intended to furnish them q
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
trust 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
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 e,,
be opposed. second, BY those who doubt
the constitutionality of such federal In
corporation and even II It 10 valid, object
1t will be opposed. third. by those who
will insist that a mere voluntary incor-
poration like this will not attract to its
against the antitrust statute and who
will therefore propose instead of II a sys-
tenn of compulsory licenses for all feder-
al corporations engaged In Interstate
LET US consider these objections in
their order. The government 10 now try
Ing to dissolve some Of , these combine ma.
government to desist in the least degree
In its effort to end these combinations
which are to-day monopolizing the COM
pears that the acquisition and concen-
creating monopoly Of substantially and
Il IS NOT the mention 81 the
to permit this monopoly to exist under
federal incorporation or to transfer to
the protecting wing OF the federal gov
lating the Sherman act But II Is not.
and should not be. the policy of the gov
eminent to prevent reasonable concern
tration, OF capital which is necessary to
the economic development of manufac-
ture, trade and commerce.
May Doubt constitutionality.
..second-There are those who doubt the
constitutionality of such federal incorpor-
alton. The regulation of Interstate and
foreign commerce Is certainly conferred
X for the purpose OF securing in the most
thorough manner that kind OF regulation,
congress shall insist that II may provide
and authorize agencies to carry on that
power. this has been distinctly affirmed
with respect to railroad companies doing
an interstate business and interstate
bridges. The power Of incorporation has
been exercised by congress and upheld
by. the supreme court In this regard.
Why. then, with respect to any other
81. goods across state boundaries and Into
fofeikh countries. may the same power
not be asserted? Indeed. It IL the very
fact that they carry on interstate COM
merce that makes these great Industrial
concerns subject to federal prosecution
and control How far as incidental to
the carrying on OF that commerce Il may
eminent to authorize the manufacturer of
goods, In perhaps more open to discus
sion. though recent decision Of the SUI
prenre courts would seem to answer that
question In the Affirmative.
THE third objection. that the worst Of
tenders will not accept federal incorpora-
ton, Ii easily answered. The DEGREES of
Injunction recently adopted in prosecu-
lions under the antitrust law are 30
thorough and sweeping that the corpora
lions affected by them have but three
courses before them:
First, they must resolve themselves
into their component parts in the Differ
ixation and TO the country OF concen-
trated energy and enterprise; or second,
In defiance Of the law and under some
secret trust they must attempt 10 con-
ttnuo their business in violation Sof the
federal Htatute,s and thus incur the pen
altiee OF contempt and bring on an In
eYitable criminal prosecutions OF the indI-
viduals named In the decree and their a.
Third. they must reorsanise ana &C
suggest federal compulsory license law.
urged AZ substitute for federal incor.
poration law, 10 unnecessary except to
reach that kind Of corporation which, 81
Virtue OF the considerations already al
vanced, Will take ADVANTAGE voluntarily
Of an incorporation law. while the Other