The Cairo bulletin., 1910-02-10
C o NJ Nj | S 1 o N ER or COR
PcRATioNS SMITH MAKES
ANNUAL REPORT.
U. S. incorporation
Is Endorsed by Him--Great Corpora
tions Must Come Under
Permanent National
Supervision.

Washington, Feb. 9.--Great inter
state industries can be brought under
permanent federal supervision through
a system OF regular reports to fed
eral agency. This will involve no
drastic action. bet instead. will fore
stall II.
Such is the conclusion drawn in tho
annual report of Commissioner OF
Corporations Smith. made Public to.
day.
Following the presentation in con-
gress OF the administration federal
incorporation bill, Smiths reeomnen.
dations are Of unusual interest
Smith asserts that under public con,
demnation great corporate abuses
have already been abandoned, the
gigantic system of railroad rate dis
examinations has been wiped away,
and numerous forms OF commercial
oppression diminished while corporate
managers themselves are frankly adj
yocating more open accounting.
Must Retain Corporations.
As guardian OF the nations welfare
the government must see 10 II that
the ordinary standards Of right and
fairness, which restrain our inlivid.
ua citizens, shall also be applied to
our great modern businesses. 1t must
make sure that the business macnln-
cry OF the country shah be preserved
from such misuse as would ultimately
destroy It,
Conditions confront VS. which are
now determining the country's future.
, A significant process OF evolution IL
going on within our commercial or
eanization. Two types or corporate
managers are struggling for It's con-
{trol. TIE one 0ike most business
/ imenl bases his success upon increas
ling the efficiency OF HIS organization;
he acquires and holds his business by
igiving better service or lower prices
! The public thus shares the benefits Of
| Ills efficiency He builds up our in
dustrial strength
The other srcceeds. not by his own
merit, but by crippling the efficiency
OF competitors: by railway rebates, by
lunfair competition, by commercial op
] pressicn by public rights mononolzei
for private gain; not by giving better
service. but by unfairly preventing
others from giving any service. II this
| process continues. it viii surrender
the control of our commercial forces
to the commercial pirate, to the in
jury Of the nation and the unfair ruin
Of individuals
Favors Fair Users
Through the Bureau of Corpora
tions, the Federal Government has de-
,'iberately taken the side OF the fair
user Of orr commercial forces This
Instrument OF the Fureau in its work
has been efficient publicity" 1t has
relied on the moral sense of the
American people. and its competing
force when concentrated intelligentlv
on business wrong 1t has reported
to the countrg, clearly and accurate
~, tne operations OF great industries
Business facts and their meaning have
been set forth in such brief and plain
shape as to be available through the
uress for the average citizen II has
thus evoked that intelligent opinion
that will protect honest business and
condemn unfair practices.
The Situation is thrs ready for
Icomplete system where Cl all i'm,
portant nterstate-commerce corpora,
tions shall regularly make reports to
a federal agency; where (2l that
agency shall have the further right to
verify and extend the facts presented;
where CD business transactions Ct
tpublic interest shall be made public
safeguarding at the same time all
proper business secrets where a.
there will be permanent meeting
ground for cooperation and adjust
| (Concluded on Sixth page)