Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-07
in RADICAL CLASS
Federal Incorporation Bill
Thus Distinguished.
CONTROL OF THE TRUSTS
Big Business Interests Said to Be
Backing the Measure.
REGARDED AS PROTECTION
President Believes Proposed Legis-
lation Will Stand Test-Gov-
eminent to Issue Licenses.
CONTROL OF THE TRUSTS
REGARDED AS PROTECTION

The administration bill to grant a
government license to corporations doing
interstate business is expected to
attract the attention of the statesmen on
the hill from now on. The opinion is
unanimous that it is the most radical
measure of governmental supervision of
domestic affairs yet presented to Con-
gress 1t will find both defenders and
opponents in House and Senate.
Curiously enough, some of those who
at the outset hailed the proposition with
acclaim. as being blow at the trusts.
are now sidestepping and viewing with
alarm" There is pronounced disposition
among that class to be suspicious of
'jokers'' in the bill.
The eagerness with which the steel
trust and some of the big railroad men
and financiers of Wall street rushed for
ward to welcome the bill with open arms
chilled the ardor of these eahlier advocates
of the plan. But their fears are ridiculed
by the other side. who point out that this
measure proposes solution of the prob
lem of controlling the trusts without up
setting business.
Business Interests Behind It.
Unquestionably the bill is to receive the
support of powerful business interests.
The house of Morgan, James ]. Hill. the
Guggenheims and the friends of all the
other good" trusts will lend their aid
to the administration and bring pressure
to bear on Congress from the thousand
and one sources In their control to fur
Their its favorable consideration in Con-
gress.
The one aim of the good trusts" is
to get from under the shadow Of po-
litical and legislative interference with
business, 1T is said, and they see in the
pending bill an opportunity to do SO. The
bill contains some provisions that are
too stringent. from their viewpoint, but
the rough edges can be smoothed down
in the progress of perfecting the bill into
law.
A striking object lesson in support of
the proposition which this bill offers was
went from Washington of the admins
traion's alleged activity against indus
trial combinations To be sure, the
Presidents intention was magnifed. but
the result, anyhow. was that prices OF
stocks of standard Industrial corporations
fell with crushing force and brought
down prices of other stocks of industries
entirely immune from governmental In.
reference.
Effect Of Government License.
1t is commended that with a govern.
mental license to do business as Their
foundation, such license revokable only
by act of Congress or after litigation il
the courts, the Industrial corporations
possessing such a bill of health could
withstand very epidemic Of rumors from
Washington or anywhere else. Upon this
theory the good trusts are back Of the
President with might and main in his
plan for the federal licensing of corpora
tons engaged in Interstate commerce bust
ness
They also urge another consideration
the belief that the holding of federal
license will enhance the value of their
stocks and give them a reader market
with the public, and that in times of ma.
tional panics the holders of these licensed
hang on to their investments and help to
steady the situation.
Takes Matter Out of Politics.
The good trusts see also another ad-
vantage in the plan. 1t will take the
trusts out Of politics. they say, and rem
der the big corporations independent OF
hold ups threatened by state legisla-
lures, by state political machines and
national machines, too. for that matter
The gentlemanly solicitor, hat in hand
along about election time will be given
the cold shoulder.
Their theory is that federal license
once granted will be pretty permanent
proposition, and that 1T will be difficult
to divest the corporation of the mantle
of governmental protection thrown about
it. Probably there will be a spirited dis
cussion over the power of Congress to
revoke the charter or it's revocation by
procedure in the courts.
Embodies Combined Thought