The Lamar register., 1910-01-12

such corporations to file full and cons-
plete reports of their operations with the
department of commerce and LABOR at
regular intervals. Corporations ORGANIZED
under this act should be prohiDiteu tronh
acquiring and holding stock In other cor
porations Except for special reasons upon
approval by the proper federal author-
ity). thus avoiding the creation uhoer
rational auspices. of the hoioins Gun.
pany with subordinate corporations ~
different states which has been such an
effective agency in the creation Oh the
great trusts and monopolies.
II the prohibition of the antitrust act
against combinations in restraint u
trade is to be effectively enforced. IL 10
essential that the national goVerhne,
shall provide for the creation OF hahoh.,i
corporations to carry on iesi.
business throughout the United Sta
The conflicting laws of the oineren'
states of the union with respect 10 Tot
elgn corporations make 1t diincut' II NJ
impossible, for one corporation 10 comply
with their requirements SO as TO carry
on business In a number OF dinereht
states.
To the suggestion that this proposal OF
federal Incorporation for Industrial com
binations is Intended to furnish tnenn -
refuge In which to continue inaus'r a.
business under federal protection. ~
should be said that the measure contem
plated does not repeal the Sherman an
trust law and IL not to be framed SO y
to permit the doing of the wrongs whicn
IL is the purpose of that law to prevent
but only to foster a continuance anu 81
vance of the highest industrial EMERGENCY
without permitting Industrial abuses.
Sure to Meet Opposition.
Such a national incorporation law VIII
be opposed, nrst, by those who pehe'e
that trusts should be completely broken
up and their property destroyed; ~ WI
be opposed, second. by those VINO uouo'
the constitutionality of such federai m
corporation and even II II IL VaNu, oo!ee'
to ii as too great federal centrah1auon.
II will be opposed, third. by those VINO
will insist that a mere voluntary moor
poration like this will not attracs 70 ~.
assistance the worst of the onehoers
against the antitrust statute and VINO
,yiiI therefore propose instead of II sys-
tenn of compulsory licenses Tor All teo-
erai corporations engaged In interstats
business.
Lat US consider these objections In their
order, The government is now Trying 70
dissolve some of these combinations anu
IL h. not the intention of the government
to desist in the least degree In its eHort
to end these combinations which are 10
day monopolixing the commerce OF I'M
country: that where It appears that the
ACQUISITION and concentration OF property
20 to the extent Of creating monopoiy
of substantially and directly restraining
Interstate commerce. II Is not the inten-
ton of the government to permit this
monopoly to exist under federal moor
poration or to transfer to the protecting
wing of the federal government of .
state corporation now violating the Sher-
man act. But It Is not and shouid NOT
be- the policy Of the government TO pre-.
vent reasonable concentration OF capitai
which IL 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 to
compete with foreign manufacturers IN
many markets. II should be the care OF
the government to permit such concern
tration of capital while keeping open the
avenues of individual enterprise. and the
opportunity for a man or corporation
with reasonable capital to engage In
business. II we would maintain our
present business supremacy. we should
| give to Industrial concerns an oppor-
tunity to organize or to concentrate their
legitimate capital In a federal corpora
ton. md to carry on their large business
within the lines of the law.
May Doubt constItutIonaIity.
Second-There are those who doubt the
constitutionaiity 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 II may provide
and authorize agencies to carry on that
| commerce. II would seem to be within Its
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 other
form of interstate commerce like the sale
Of goods across state boundaries and Into
foreign countries, may the same power
not be asserted7 Indeed. II Is the very
fact that they carry on Interstate COM
merce that makes these great Industrial
concerns subject to federal prosecution
and control. How far as Incidental to
the carrying on of that commerce IL may
be within the power of the federal gov
eminent to authorize the manufacturer Of
goods. Is perhaps more open to discuss
sion. though a recent decision Of the SUI
preme court would seem to answer that
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 to
the enlargemeD. of the federal power at
the expense of the power of the state.
II Is a sufficient answer to this argument
to say that no other method can be sug-
gested which offers federal protection on
the one hand and close federal supervi-
sion on the other of these great organi-
cations that are In fact federal because
they are wide as the country and are
entirely unlimited In their business by
state lines Nor Is the Capitalization of
federal power under this act likely to be
excessive. Only the largest corporations
would avail themselves of such a law, be-
cause the burden of complete federal su-
pervision and control that must certainly
be imposed to accomplish the purpose of
the Incorporation would not be accepted
by an ordinary business concern. The
third objection. that the worst offenders
will not accept federal Incorporation, IL
easily answered. The DEGREES of injunc-
ton recently adopted in prosecutions un-
der the antitrust law thorough
and sweeping that the corporations af-
fected ~ them have but three courses
before them:
First. they must resolve themselves
into their component parts in the differ
ent states. with consequent loss to
themselves of capital and effective organ
ization and to the country of concern
trated energy and enterprise: 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.
aities of contempt and bring on an in
| eyitable criminal prosecution of the fndi-
,-tauais named in the decree and thatr