The Mena weekly star., 1910-01-13

the comfort not only of stockholders but millions of wage earners employees, and i associated tradesmen must necessarily tend to disturb the confidence of the | business community, to dry up the now ! flowing sources of capital from It's places of hoardlng and produce halt in our | present prosperity that will cause suf- fering and strained circumstances among the innocent many for the faults of the guilty few. The question which I wish In this message to bring clearly to the consideration and decision of the con- gress whether to avoid business danger something cannot be done by which these business combinations may be of fered a means. without great financial disturbance, of changing the character, organization and extent of their business into one within the lines of the law un- der federal control and supervision. se- curing compliance with the antitrust statutes.
 For Goverpment Control. }. Generally, fnethe Industrial combina- tions called trusts the principal busI- ness is the sale of goods in many stateS and in foreign markets; in other words, the interstate and foreign business far exceeds the business done in any one state. This fact will justify the fed- eral government in granting federal charter to such a combination to make and sell in interstate and foreign com merce the products of useful manufac- ture under such limitations as will se- cure compliance with the antitrust law. It is possible so to frame statute that while it offers protection to a fed erai company against harmful vexatious and unnecessary invasion by the states, 1t shall subject 1t to reasonable taxation and control by the states, with respect to its purely local business.
 Many people conducting great busi-
 ,l.- .l.-1 ns.I I.<. lief that in some way or other line may be drawn between good trusts" and bad trusts" and that 1t is possible by amendment to the antitrust law to make a distinction under which good combina- tions may be permitted to organize, sup press competition, control prices, and do it all legally if only they do not abuse the power by taking too great profit out or the business. They point with force to certain notorious trusts as having grown Into power through criminal methods by the use of Illegal rebates and plain cheat ing, and by various acts utterly violative of business honesty or morality, and urge the establishment of some legal line of SC paration by which 'criminal trusts" of this kind can be punished. and they, on the other hand, be permitted under the law to carry on their business Now. the public. and especially the business public. ought to rid themselves of the
  ahie or can be introduced into the stat ute.
 Certainly under the present antitrust law no such distinction exists. It has been proposed however. that the word reasonable" should be made a part of the statute. and then 1t should be left to the court to say what is a reasonable restraint of trade. what Is reasonable suppression of competition. what is req sonable monopoly. I venture to think that this is to put into the hands of the court power impossible to exercise on any consistent principle which will in- sure the uniformity of decision essential to just Judgment. It is to thrust upon the courts burden that they have no precedents to enable them to carry. and to give them power approaching arbitration. the abuse of which might involve our whole judicial system in dis aster.
 An Aid to Business Virtue. In considering violations of the anti trust law we ought, of course not to forget that that law makes unlawful, methods of carrying on business which before its passage were regarded as evi- dcnce of business sagacity and success, and that they were denounced in this act 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 the hands of the few, leading to oppres- sion and injustice. In dealing. therefore. with many of the men who have used the methods condemned by the statute for the purpose of maintaining a profit able business. we may well facilitate a change by them in the method of doing business. and enable them to bring fl back Into the zone of lawfulness, with out losing to the country the econorny of management by which. in our domestic trade the cost of production has been , materially lessened. and In competItion with foreign manufacturers our foreign trade has been greatly increased
 Through all our consideration of this grave question however we must Insist that the suppression of competition. the controlling of prices, and the monopoIy CT attempt to monopolize in interstate commerce and business are not only un- lawful but contrary to the public good and that they must be restrained and punished until ended
 Asks National Corporation Law.
 therefore recommend the enactment by congress of general law providing TOT the formation of corporations to en- gage In trade and commerce among the states and with foreign nations protect Ing them from undue interference by the states and regulating their activities so as to prevent the recurrence, under Hatlonai auSplceS or those abuses which have arisen under state control Such a law should provide for the issue of stock of such corporations % an amount equal only to the cash paid in on the stock; and If the stock be issued for property, then at fair valuation ascer- tained under approval and supervision of federal authority after a full and corn plete disclosure of all the facts pertain ing to the value of such property and the interest therein of the persons to whom 1t Is proposed to issue stock in payment of such property. 1t should subject the real and personal property only of such corporations to the same taxation as in1- posed by the states within which 1t may be situated upon other similar property located therein. and it should require such corporations to file full and com plete reports of their operato with the department of commerce and labor at regular intervals Corporations organized under this act should be prohibited from acquiring and holding stock in other cor poratons (except for special reasons upon approval by the proper federal author ty), thus avoiding the creation, under national auspices of the holding com- pany with subordinate 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, 1t is essential that the national government shall provide for the creation of national cOrpOratiO0e to carry on a legitimate