The Columbus journal., 1910-01-12
able or can be introduced into the stat.

In considering violations OF the anti
trust law We ought. Of course. not I,
| forget that that Law makes unlawful
! methods Of carrying on business which
dence of business eagacity and success
| and that they were denounced In this &C
| 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 thu
hands Of the few. leading to oppres
sion and injustice In dealing h .ne1ef"ss
the methods condemned by the statute
| for the purpose of maintaining q profit'
able business, We may well facilitate
| ing business. and enable them to bring II
back into the zone Of laWfulness. withou,
losing to the country the economy OF
trsds shs cost Of production has beer
materially lessened. and in competition
with foreign manufacturers our foreign
trade has been greatly increased
Asks National Corporation Law.
Il therefore recommend the enactment
by congress OF a general law providing
for the formation Of corporations 10 en-
states and with foreign nations. protect
ing them from undue interference by the
states and regulating their activities 30
tionai auspices. Of those abuses which
have arisen under state control. Such a
law should provide for the issue of stock
OF such corporatiOnas to an amount equal
and if the stock be issued for property.
then at a fair valuation ascertained un-
der approval and supervision Of federal
authority after 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 payment Of
such property. 1t should subject the real
personal M
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 ii should require
such corporations to file full and COM
plete reports of their operations with the
department OF commerce and labor at
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
ty), 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 monopolies.
State Laws Conflict.
IF the prohibition Of the antitrust act
against combinations in restraint Of trade
Is to be effectively enforced. IL is essen
tial that the national government shall
provide for the creation of national cor
pOratiOns TO carry on a legitimate bust
ness throughout the United States. The
conflicting laws of the different states Of
the union with respect to foreign corpora
tons make 1t difficult, IL not impossible
for one corporation to comply with their
requirements so as to carry on business
in number Of different states.
ITO the suggestion that this proposal OF
federal incorporation for industrial COM
binatiOns is intended to furnish them
refuge in which to continue industrial
business under federal protection. 1t
b. N1,,e
plated does not repeal the Sherman anti
trust law and is not to be framed SO al
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
up and their property destroyed 1t will
be opposed. second. by those who doubt
the constitutionality Of such federal in
and even II it is valid. object
II will be opposed. third. by those who
Will insist that a mere voluntary incOr-
like this will not attract to its
assistance the worst of the offenders
against the antitrust statute and who
will therefore propose instead OF IL a sys-
tern of compulsory licenses for all feder-
Al corporations engaged in interstate |
business.
Let US consider these objections in |
heir order. The government is now try
ns to dissolve some of these combina- |
government to desist in the least degree |
n its effort to end these combinations |
which are to-day monopolizing the COM |
nerce OF this country: that where IL ap-
'ears that the acquisition and concen-
ration OF property go to the extent OF |
rcatine a monopoly of substantially and |
irectly restraining interstate commerce.
Is not the intention of the government |
o permit this monopoly to exist under
ederal Incorporation or to transfer to
he protecting wing Of the federal gov
ating the Sherman act. But IT Is not.
nd should not be. the policy of the gov
rnment to prevent reasonable concen-
ration Of capital which is necessary to
ure. trade and commerce.
May Doubt constitutionaIity.
"Second-There are those who doubt the
Of such federal incorpOr-
ton. The regulation Of interstate and
oreign commerce is certainly conferred
! the fullest measure upon congress, and
for the purpose OF securing in the most
borough manner that kind of regulation
ongresS shall insist that it may provide
nd authorize agencies to carry on that
ommerce. 1t would seem to be within its
over. this has been distinctly affirmed
18th respect to railroad companies doing
n interstate business and interstate
ridges The power of Incorporation has
|
Y the supreme court in this regard
NY, then. with respect to any other
lEh OF Interstate commerce like the sale |
goods across state boundaries and into
'reign countries. may the same power /
OF be asserted? Indeed. it is the very |
let that they carry on interstate COM
erce that makes these great industrial
sncerns subject to federal prosecution
nd control. How far as incidental to |
lie carrying on OF that commerce il may
e within the power Of the federal gov
.nment to authorize the manufacturer Of
pods. is perhaps more open to discus
on. though a recent decision OF the SUI
'eme court would seem TO answer that
IestiOn in the affirmative
THE third objection. that the worst Of
nders will not accept federal incorpora-
on. is easily answered. The DEGREES OF 1
junction recently adopted in prosecu-
Dns under the antitrust law are SO
orOrgh and sweeping that the corpora I
pms affected by them have but three
urseS before them:
First. they must resolve themselves
to their component parts in the differ
It states. with consequent loss to
Of capital and effective organ E
alton and to the country of corcen-
defiance of the law and under some ,
cret trust they must attempt to con- l
luc their business in violation of the Y
derai statute. and thus incur the pen ,
ties OF contempt and bring on an in j
liable criminal prosecution Of the indi- | 7
duals named In the decree and their as -.
clates. or !
Third they must reorganiZe and ac- ! y
pit ir good faith the federal charter
ggest a federal compulsory license law.
ged as substitute for federal incor-
ration law. is unnecessary except ia
ach that kind Of corporation which. bv
rtue of the considerations already ad-
need: will take advantage voluntarily
an incorporation law. while the other h
ate corporations doing an Interstate :,
siness do not need the supervision or u
2 regulation OF federal license and :
ereby.'' u
O