Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1910-01-19

offered a means, without great finan-
cial disturbance, of changing the char
acter, organization and extent of
their business into one within the
lines of the law under federal control
and supervision, securing compli-
ance with the antitrust statute"
Federal Incorporation.
Generally in the industrial combina-
tions called trusts the principal bust
ness is the sale of goods in many
states and in foreign markets; in
other words, the interstate and for
eign business far exceed the business
done in any one state. This fact, says
the president will justify the federal
government in granting a federal char
ter to such combination to make and
sell in interstate and foreign com
merce the products of useful manu-
facture under such limitations as
will secure a compliance with the anti
trust law. 1t is possible so to frame a
statute that while it offers protection
to federal company against harm
full, vexatious, and unnecessary inva-
sion by the states, it shall subject it
TO reasonable take IN and control by
the states, with 1ect to it's purely
local business.
The president recommends, the en-
actment of general law providing
for the formation of corporations to
engage in trade and commerce, pro-
tecting them from undue interference
by the states and regulating their ac-
tivities so as to prevent the recur-
renee of those abuses which have
arisen under state control. Such a
law should provide for the issue of
stock 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 under ap-
proval and supervision of federal au.
thority. Corporations organized IN
der this act should be prohibited from
acquiring and holding stock In other
corporations Except for special rea-
sons upon approval by the proper fed
eral authority thus avoiding the
creation, under national auspices. OF
the holding company with subordin-
ate corporations in different states,
which has been such an effective
agency in the creation of the great
trusts and monopolies.
If the prohibition of the antitrust
act against combinations in restraint
of trade is to be effectively enforced,
it is essential that the national gov
eminent shall provide for the crea.
fiOD IF national cornnrofi0po 81 nor,-.t
on legitimate business throughout
the United States. The conflicting
laws of the different states with re-
spect to foreign corporations make it
difficult, If not impossible, for one
corporation to comply with require.
ments so as to carry on business in a
number of different states.
The president admits that such a
national incorporation law Will be
opposed. first, by those who believe
that trusts should be completely
broken up and their property de-
stroyed. 1t viii be opposed, second,
by those who doubt the constitutional
ity of such federal incorporation, and
even If 1t IS valid, object to it as too
great federal Capitalization. It will be
, opposed, third, by those who will in
sist that mere voluntary incorpora-
ton like this will not attract to its
acceptance the wohst of the offenders
against the antitrust statute and who
will therefore propose instead of it a
system of compulsory licenses for all
federal corporations engaged in In
terstate business. But the president
believes all these objections NAV be
dismissed. gMN