Gilpin observer., 1910-01-13

such corporations TO file full ana COM
plete reports OF their operations with the
department OF commerce and labor ~
regular intervals. Corporations organized
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 COM
pany with subordinate corporations In
different states which has been such an
effective agency in the creation of the
great trusts and monopolies-
II the prohibition of the antitrust act
against combinations in restraint OF
trade is to be effectively enforced. 1t 10
essential that the national government
shall provide for the creation of national
corporations to carry on legitimate
business throughout the United Statea.
The conflicting laws of the different
states of the union with respect to Tor
eisn corporations make 1t difficult, II not
impossible, for one corporation to comply
with their requirements so to carry
on business in number of different
states.
To the suggestion that this proposal OF
federal incorporation for Industrial COM
binations is intended to furnish them .
refuge In which to continue INDUSTRIAL
business under federal protection ~
should be said that the measure contem-
plated does not repeal the Sherman anu
trust law and is not to be framed so al
to permit the doing of the wrongs which
1t is the purpose OF that law to prevent,
but only to foster continuance ana ad-
vance of the highest Industrial efficiency
without permitting Industrial abuses.
Sure to Meet Opposition.
Such a national Incorporation law win
be opposed. first, by those who believs
that trusts should be completely broken
up and their property destroyed 1t VIII
be opposed, second. by those who douot
the constitutionality of such federai IN
corporation and even II 1t is valid, ooJecs
to it as too great federal Capitalization
1t will be opposed. third, by those VINO
will insist that mere voluntary moor
poration like this will not attract TO its
assistance the worst of the Offenders
against the antitrust statute and whe
will therefore propose instead of 1t sys-
tenn of compulsory licenses for all red
eral corporations engaged in Interstate
business.
Let us consider these objections in then
order The government is now trying to
dissolve some of these combinations and
1t is not the intention of the government
to desist in the least degree in It's efior'
to end these combinations which are To-
day monopolizing the commerce or TINS
country; that where 1t appears that ths
ACQUISITION and concentration OF property
go to the extent OF creating a monopoly
| of substantially and directly restraining
| interstate commerce. ii is not the inteh-
ton OF the government to permit thA
monopoly to exist under federal incor-
| poration or to transfer to the protecting
wing of the federal government OF .
| state corporation now violating the Sher-
| man act. But 1t is not, and should not
| be- the policy of the government to pre-
| vent reasonable concentration OF capital
which is necessary to the economic devei-
| opment of manufacture. trade and COM
merce. This country has shown power
| of economic production that has aston
| ished the world. and has enabled us ts
| compete with foreign manufacturers In
| many markets. 1t should be the care OF
| the government to permit such concen-
| tration of capital while keeping open the
| avenues of Individual enterprise, and the
| opportunity for a man or corporauon
with reasonable capital to engage In
| business. If we would maintain oui
| present business supremacy. we should
| give to Industrial concerns oppors
| tunity to organize or to concentrate thei1
legitimate capital in federal corpora
ton. and to carry on their large business
within the lines of the law.
May Doubt constitutionality. i
Second-There are those who doubt th<
| constitutionality of such federal incorpor.
| alton. The regulation of interstate and
| foreign commerce is certainly conferred
| in the fullest measure upon congress. and
| II for the purpose of securing in the most
| thorough manner that kind of regulation
| congress shall insist that it may provide
| and authorize agencies to carry on thai
| commerce. 1t would seem to be within itl
| 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 othes
form Of interstate commerce like the sale
| of goods across state boundaries and ints
| foreign countries, may the same powe4
| not be asserted? Indeed. II is the very
| fact that they carry on interstate com.
| merce that makes these great Industrial
| concerns subject to federal prosecutios
| and control How far as incidental to
| the carrying on of that commerce IL mar
be within the power of the federal gov.
| ernment to authorize the manufacturer ol
| goods. is perhaps more open to discus.
| sion. though recent decision OF the su.
| preme court would seem to answer thai
| question in the affirmative.
Even those who are willing to conceds
| that the supreme court may sustain such
| federal Incorporation are inclined to op-
pose II on the ground of its tendency t.
| the enlargement of the federal power at
| the expense of the power of the state
| It is a sufficient answer to this argument
| to say that no other method can be suR.
gested which offers federal protection or
| the one hand and close federal supervi.
sion on the other of these great organi.
| cations that are In fact federal because
| they wide as the country and ar,
entirely unlimited in their business by
| state lines. Nor Is the Capitalization Of
| federal power under this act likely to b
| excessive. Only the largest corporations
would avail themselves OF such n law be.
cause the burden OF complete federal SUI
| pervision and control that must certainiy
be imposed to accomplish the purpose OF
| the Incorporation would not be accepted
| by an ordinary business concern. The
| third objection, that the worst offender
will not accept federal incorporation. 10
| easily answered. The DEGREES OF injuno-
ton recently adopted in prosecutions un.
der the antitrust law so thorough
and sweeping that the corporations az