The daily sentinel., 1910-01-07

bridges. The power of Incorporates
has been exercised by congFess xDE
upheld by the supreme court In gkin7
regard. Why, then, with respecA -
any other form of Interstate eoxp-
merce like the sale of goods zcrxsxs
state boundaries and into foresysx
commerce. may the same power ncs>-
be asserted? Indeed. it is the pf-l.
fact that they carry on interstais
commerce that makes these great IT,
dustrial concerns subject to federts
prosecution and control
How far as incidental TO the carry
ing on of that commerce it may fsz
within the power of the federal fo.-
ernment to authorize. the manafac-
ture OF goods, is perhaps open to GGsss-
cussion, though a recent dissenssaA
of the supreme court would seem axs-
answer that question in the afrirmx-
tive.
Even those who are willing to clNgs-
cede that the supreme court may sus-
tain such federal incorporation Ens
inclined to oppose IL on the gruuua
of its tendency to the enlargement ~
the federal power at the expense SiE
the power of the states. II is Suf-
ficient answer to this argument 10 sa.
that no other method can be sug-
gested which offers federal protecsioN
on the one hand and close fsderz1n
supervision on the other of thsse
great organizations, what are ia fass.
federal because they are as wide sas
the country and are entirely uuiinS--
ed in their business by state lines.
Nor is the Capitalization of fesfsrxzi
power under this act likely to be ey-
cessiye Only the largest corpor.a-
tions would avail themselves of Surea
law because the burden OF couupte4,s
federal supervision and control tlsau.
must certainly be imposed to ao-Dm-
plfsh the purpose of the ncorporz,-
tion would not be accepted BIZ 4sa
ordinary business concern.
The third object, that the WORSE Of
Tenders will not accept federal fpcos-
poration, is easily answered. The G.s--
crees of injunction recently adolssszd
in prosecutions under the auti-trds-
law are so thorough and svest.tnss
that the corporations affected IS
them have but three ALTERNATIVE sss---
fore them.
First, they must resolve themssires-
into their component parts iii the drt-
fenent states, with a consequent Apsa
to themselves of capital and effective
organization TO the country "a cut1--
centrated energy and enterprise OF.
Second, in defiance OF law and u.a-
der some secret trust they must az--
tempt to continue their business "A
of the federal statute sar
thus incur the penalties of coutsasps.s
and bring on an inevitable cCinErse
prosecution of the individuals uarieS
in the decree and their associates ecr
Third, they must reorganize ana.
accept in good faith, the federal cf,ar-
ter ! suggest
A federal compulsory license IaS-
urged as substitute for 4 feds<zSS
law, is unnecessary sr-
,ept to reach that kind of corporatm.la
which. by virtue of the consid eraeSnnf
llready advanced, will take a1fyautzs.s-
of any corporation Law,
while the other state corporations SE--
ng an interstate business do not ussSsI
The supervision or the regulation r.
a federal license and would onIy ss-
a burde nthereDy
The attorney general. at my sug-
sestion, has drafted a federal au<-
bill embodying the views q
have attempted to set forth and n
will be at the disposition of the APP
propriate committee of congress
tSigned).
WILLIAM II. TAFT
The White House, Jan. Z. 1910