The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1910-01-14
able or can be ,ntroduced into the stat

dence of business sagacity and success,
and that they were denounced In this act
not because Of their intrinsic immoral
ity. but because of the dangerous re-
suits toward which they tended, the con-
centration of industrial power in the
hands Of the few leading TO oppres-
with many OF the men who have used
the methods condemned by the statute
for the purpose of maintaining a profit
able business, we may we. facilitate q
change by them in the method or DO
ing business, and enable them to bring II
back into the zone of lawfulness, without
management by which,, in our domestic
trade the cost of production has been
materially lessened, and in competition
with foreign manufacturers our foreign
trade has been greatly increased.
Asks National Corporation Law.
II therefore recommend the enactment
by congress Of a general law providing
for the formation Of corporations to en-
gage in trade and among tho
states and with foreign nations, protect
ing them from undue interference py TUG
states and regulating their activities 50
as to prevent the recurrence, under ma
tional auspices, Of those abuses winch
have arisen under state control. Such
law should provide for the issue OF stock
of such corporationas to an amount equal
only to the cash paid In on the STOCK.
and If the stock be issued for property,
then at a fair valuation ascertained un,
der approval and supervision of federal
authority after a full and complete dis
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 m OF
such property. 1t should subject the real
and personal property only of such cor
porations to the same taxation as i'm
posed by the states within which 1T may
be situated upon other similar property
located therein, and It should REQUIRE
plete reports of their operations with the
department of and labor az
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 company
with subordinate corporations in different
states which has been such an effective
agency in the creation OF the great trusts
and m~onopolies.
State Laws Conflict.
eff the prohibition of the antitrust act
against combinations in restraint OF trade
is to be effectively enforced, it Is essen,
tial that the national government shall
provide for the creation OF national cor
porations to carry on a legitimate busl-
ness throughout the United States. The
conflicting laws of the different states OF
the union with respect to foreign corpora
lions make it difficult, if not impossible,
for one corporation to comply with their
requirements SO as to carry. on business
III d IulIlDcT u dlllCItIl StotNS-
ITO the suggestion that this proposal OF
federal incorporation for industrial COM
binations Is intended to furnish them a
refuge in which to continue industria,
business under federal protection. 1t
should be said that the measure contem-
plated does not repeal the Sherman anti
trust law and is not to be framed so az
to permit the doing OF the wrongs which
it is the purpose of that law to prevent,
but only to foster a continuance and ad-
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 roken
up and their property destroyed; IT VIII
be opposed, second, by those who doubt
the constitutionality of such federal in
corporation and even if it is valid, object
to it as too great federal GENERALIZATION.
1t will be opposed, third. by those VINO
like this will not attract to its
assistance the worst of the Offenders
the antitrust statute and who
will therefore propose instead OF II a sys-
TEN of compulsory licenses for all feder-
al corporations engaged in interstate
business.
their order. The government is now try
ing to dissolve some of these combina-
lions and it is not the intention Of the
to desist in the least degree
in its effort to end these combinations
which are to-day monopolizing the COM
of this country; that where 1t APP
pears UNaC the acquisition anu COHCeH-
Of property go to the extent OF
creating a monopoly Of substantially and
directly restraining interstate commerce.,
it is not the intention of the government
to permit this monopoly to exist under
incorporation or to transfer to
the protecting wing Of the federal gov
ernmen of a state corporation now VIC
lating the Sherman act. But it is not,
and should not be. the policy of the gov
to prevent reasonable concen-
tration of capital which is necessary to
fha noAnnnojn Ioyo1nnrnnnf Of YnanlyfQn-
ture, trade and commerce.
May Doubt ConstitutionaIity.
"second-There are those who doubt the
conStitutionality of such federal incOrpor-
alton. The regulation of interstate and
foreign is certainly conferred
in the fullest measure upon congress-, and
if for the purpose of securing in the most
manner that kind of regulation,
congress shall insist that it may provide
and authorize agencies to carry on that
power, this has been distinctly affirmed
respect to railroad companies doing
an interstate business and interstate
The power of Incorporation has
been exercised by congress and upheld
the supreme court in this regard.
Why, then, with respect to any other
of goods across state boundaries and into
foreign countries, may the same power
not be asserted? Indeed, it is the very
that they carry on interstate com,
/ tIidl l1ldhCo SlSA Ga
subject to federal prosecution
and control. How far as incidental to
the carrying on of that it may
be within the power of the federal gov
eminent to authorize the manufacturer of
goods, is perhaps more open to discus
sion, though a recent decision of the SUI
preme court would seem to answer that
question in the affirmative.
1.-The third objection, that the worst Of
tenders will not accept federal i%ncorpora-
ton, is easily answered. The DEGREES OF
injunction recently adopted in prosecu-
tons under the antitrust law are SO
thorough and sweeping that the orpora-
tons affected by them have but three
courses before them:
into their component parts in the differ
themselves of capital and effective organ
trated energy and enterprise; or second,
in defiance of the law and under some
secret trust they must attempt to con-
tinue their business in violation of the
federal statute, and thus incur the pen
alties of contempt and bring on an in
evitable crimina prosecution of the indi-
named in the decree and their as
or
Third, they must ~reorganize and ac-
cept in good faith the federal charter I
a federal compulsory license law,
as a substitute for a federal incor-
poration law, is unnecessary except to
that kind of corporation which, by
virtue of the considerations already ad-
vanced, will take advantage voluntarily
of an incarceration law. while the other