The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-04-30
A PREMIUM ON PUBLICITY.

marcs Commlasion h AUTHORISED % roquire
from all common carriecs subject 10 thu
provisions Of that act q sworn annuns
statement Of tho dslAils og thelr business.
the capital stock issued and the amount
paid for Il; tho divide0ds paid and the
/ surplus fund. 10 any: the number Of stock
holdsrn. tho funded and floating deots.
the number az employees and the salAri@s
paid 20 each class; earnings, recetpts.
Operating expenses. profit and loas. the
statement 10 bs q complets exhfbit % all
financial operations. The snbmissioa OF
theas roporta 70 compulsory. and . p@naity
10 imposed upon those who fail TO Mo ths,r
reports within a specified time.
H. n. Is.4ea. introduced In the HOUSE
ON January rs by Representative Mann
Of Illinuin, 10 entitled "a hin to regulate
Commorce botwoun the States and with
forslRn nations by authorizing corpo-
rations doing interstate or foragn com
merce 20 be registsced In the Bureau
oG Corporations. In tho Department of
Commerce and Labor. and for oeh~r pur-
poses. The difference bstween ths Mann
bill and the Hepburn Law is that reports
90 the Interstate -commerco Commission
by the railways are made under legal
requirements. while tho reports proposed
by the Mann bill are 20 DO made volun-
tarily. The schsne 10 evidently based
on the theory Of advantage TO the report
ing corporation In securing a right TO an
nouncs and 60 advertise itself a. regis
tered with the bureau. In acquiring by
j registration q semi-officiaI pae-'ut Of inan-
cial soundness and general integrity.
Whatever may be the merit Of the
central part OF the Mann bin. voluntary
report and registration. the conditions
proposed by Il are distinctly objection
able. II vests In the Commissioner OF
Corporations the power to grant or Co
refuse registration 20 tho applicant. IL
provides for Investigation by that Official
and authorizes him TO admit 10 registry
such applicants ~ he shall find lin good
financial condition and carrying on a legal
business IL further provides that 70
from any annual statement fled or from
investigations conducted by the bureAu
10 shall appear TO the commissioner that
corporation previously admitted TO reg
istry -is In an unsound condition OF IL doing
an Illegal business 10 shall be the duty Of
the Commissioner Of Corporations TO order
the corporation TO make good liz fin@n-
cial condition OF desist from It's illegal
UuntaAE1o hMAAM0I REAaAaAtI W NeAaNCAAess-Fas
OF the registry. and supply TO the public
press the reasons for the cancellation.
Federal control and regulation OF
corporations has for its special objects
the protection OF the public AZ q whole
against monopoly and extortion. and pro-
lection Of supposedly innocent and igno-
rant investors against financial trickery.
The irss Of these objects 10 Theoretically
a
10 not yet covered and the effort To secure
publicity by means % the corporation
tar Law has not been a complete success.
Publication Of its affairs and condition
through the press or otherWi se - at any
time a possibility for any corporation
desiring publicity. but the present chan
nels have their limitations. After six
years of intimate association with corpo-
rations and their methods and policies
Commissioner Smith says in his report
for 1879 that corporate managers them
selves are frankly advocating more open
accounting. One by one the great silent
corporations are seeking public conf
ience by adopting a new policy u pub
licity.- This n one 81 the inevitable
results Of modern business methods.
No man In obliged To purchase the stock
Os IN industrial or commercial orgAniza-
ton about which he knows nothing aud
can learn nothing. Ifhe buys in Ignorance
Of conditions and values he CANDLES. and
deserves no sympathy Il he loses. The
wisdom and the prOpriety Of efforts to
guard foolish investors against their own
folly are exceedingly questionable. but
such a system 10 clearly the purpose Of
much Of the clanor for public control Of
corporations and for compulsory pub
lefty. That N a matter which will regu-
late itself and the increasing tendency
asserted by Commissioner Smith toward
voluntary publicity may be accepted a.
Indication II not ~ proof Of conviction on
the part Of corporations themselves that
publicity 10 more profitable than secrecy.
The Mann bill In ia central proposition
opens q new and broader avenue Of pub
hcity. ItWould establish a reliable agency
20 which honest Investors might At any
time apply for information. II the bill
were properly drawn the Government
would be committed TO nothing beyond the
supply OF information given % u under the
oath a q responsible official Of the cOrpO-
ration. In that part Of the schcme there
10 merit that warrants careful considers
tion Of the measure.
That part Of tho Mann hill providing
for ofScial investigation and for clothing
the bureau with authority 10 grant or 20
refuse registry IL impossible. II confcrs
q power Of legal discriminaticu not &C all |
within the proper scope Of departmental
bureau. Il would practically commit the |
Government 20 an otIicial indorsssnent q |
GUARANTEES Of tho Registered corporations. |
IL would In elect place the Government \
In the position Of declaring regarding any
given corporation admitted 90 registry /
that. having fully investigated tho or
gAnization. finances and methods Of lths
Everlasting Pump Company. tho Bureau
of Corporations bcseby declares that h h
lex.lly organizsd an financially sound
and that It's business h carried on In a
lawful manner This 10 manifsstiy Inn
possible. Registry should no broadly
opsn 10 all who might apply for IL. Tho
reports SHOULD he made under oath. with
heavy penalty for any form % falsifca-
ton.
The inducement 20 register would be a
standing given 90 the registered corpora-