The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-02-10

WASHINGTON, Feb. 9.-That great
interstate Industries can be brought
under a permanent federal supervision
through a system of regular reports to
a federal agency, in a rational, effective
way, which will involve no drastic ac-
tion, but, on the contrary, will fore
stall it, is the conclusion drawn in the
annual report of Herbert Knox Smith,
commissioner of corporations, to the
secretary Of commerce and labor,
The report was made public today.
"Publicity will improve the stand
ing of our corporate securities, both
at home and abroad,' Mr.. Smith de.
clares, "and will help to give our busi
ness machinery that foundation of fair
ness and openness and public confidence
which it must have if it is to be a per-
manent factor in our national advance.
cit will bring together the govern
ment and the corporate manager in con-
ference and cooperation while ono
can serve TO adjust continuously the
complex and changing relationship be.
tween our business forces and the pub"
lie welfare
Mr.. Smith contends that already, un-
der public condemnation, made posi-
bic by facts plainly stated, great cor
porate abuses have been abandoned. He
says that a gigantic system of railroad
rate determinations has been wiped
cial oppression diminished. Corporate
managers themselves. says Mr. Smith,
are frankly advocating a more open
accounting.
Text of Report.
The report in full follows:
Department of Commerce and Labor,
Bureau OF Corporations, Washington,
January 81, 1910.
Slr-The deepest interest OF this gen.
Grafton lies In the control of It's dominant
commercial forces. The Issue is moral,
involving deeply our American ideal of
financial. and on Its outcome depends
the ultimate stability of our business sys-
tenn
The corporation has become the ac-
forces. II is the artificial creature OF the
community. We have given 1t great
powers ESy sai and exemptions not permitted to
-ective. We have likewise made 1t capa-
ole OF sinister misuse.
The corporation has concentrated enor-
nous commercial power in the hands of |
4 few men. At the same time II has |
essened their personal responsibility for |
The proper use of that power. Sense OF |
PERSONAL obligation to the community be-
tiles. The resulting abuses call for some
'estralnt that shall take the place OF
he old personal obliga tlon., Government
must be that substitute.
The issue is national: action by the
ederal government is imperative under
IS unauestioned power and duty to regu--
ate Interstate commerce. The federal
government is the only adequate author
ty: one of the primary motives for its
reauon was for national control OF
,reat corporations have deliberately ma
ionalized them in size and scope; they
annot now be heard to object to a CEN
rallied control which they themselves
ave made TheN hnUa ma IL
heir businesses truly governmental in
heir effect on the people. They cannot
ow deny that the government is con-
erned therein.
Duties of Government.
AS guardian OF the nations welfare.
he government must see to 1t that the !
rdinary standards of right and fairness. {
mich restrain our Individual citizens, |
hall also be applied to our great modern
businesses. II must make sure that the
usiness machinery of the country shall f!
Q preserved from such misuse as would !
detToy It. \
Conditions confront us which are now J
etermining the country's future. A sig l
tficant process of evolution is going on I
lthln our commercial organization. Two /
pes CT corporate managers are strue- '
ling for It's control The one dixie most T
nsiness men) bases his success upon e
icreasing the efficiency OF his orsaniza- I
on: he acquires and holds his business C
Y giving better service or lower prices. I
he public thus shares the benefits OF his a
'fciency. He builds up our Industrial
rength.
The other succeeds, not by his own +
crit, but by crippling the efficiency OF y
'mpetitors; by railway rebates, by un- q
-!r competition. by commercial oppres-
on, by public rights monopoIized for O
'lvate gain; not by giving better service "
IT by unfairly preventing others from | q
wing any service, II this process con- n
nues, It will surrender the control OF c
IT commercial forces to the commercial l1
rate, to the injury of the nation and v
o unfair ruin OF Individuals r.
Through the bureau OF corporations. the ~
deral government has deliberately taken /,
C side OF the fair user OF our CONNER ri
al forces. The instrument OF the bu- o.
au In its work has been deficient pub g,