Ottumwa tri-weekly courier., 1910-01-08

to carry on that commerce. it would
seem to be within it's power. This has
been distinctly affirmed with respect
TO railroad companies doing an inter-
state 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 in
TO foreign commerce, may the same
power not be asserted? Indeed, 1t is the
very fact that they carry on interstate
commerce that makes these great in
dustrial. concerns subject to federal
prosecution and control How far as
incidental to the carrying on of that
commerce it may be within the power
of the federal government to authorize
the manufacture of goods, is perhaps
more open to discussion, though II
recent decision of the supreme court
would seem to answer that question in
the affirmative.
States Powers Not Weakened.
Even those who are willing to con-
cede that the supreme court may sus-
tain such federal Incorporation
are inclined to oppose it on the ground
OF its tendency to the enforcement of
the federal power at the expense of
the power of the states. 1t Is a .suf-
ftcfent 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 sup
ervision on the other of these great
organizations, that are in face facial
because they are as wide as the coun
try and are entirely unlimited in their
business by state lines. Nor is the CEN
tralization of federal power under this
act likely to be excessive. Only the
largest corporations would avail them
selves of such law, because the bur-
den of complete federal supervision
and control that must certainly be i'm
posed to accomplish the purpose of the
incorporation would not be accepted
by an ordinary business concern.
Worst Offenders to be Punished.
The third objection. that the worst
offenders viii not accept federal incor
poration, is easily answered. The de-
crees of injunction recently adopted in
prosecutions under the antitrust law
are so thorough and sweeping that
the corporations affected by them
have but three before them:
First, they must resolve themselves
into their component parts in the diff
ferent states, with consequent loss
to themselves of capital and effective
| organization and to the country of
'NSiAhi o'Su NiASi SS "ii' eN'A'Si P'i1' >
or
Second, in defiance Of law and under
some secret trust they must attempt to
continue their business in violation Of
the federal statute, and thus incur the
penalties of contempt and bring on an
inevitable criminal prosecution of the
! individual names in the decree and
their associates or
Third, they must reorganize and ac-
icept in good faith the federal charter
III suggest.
A federal compulsory license law,
urged as substitute for federal in
corporation law, Is unnecessary except
to reach that kind of corporation will
be, by virtue of the considerations all
ready advanced, will take advantage
voluntarily of an incorporation law.
! while the other state corporations do
| ing an Interstate business do not need
the supervision or the regulation of a
federal license and would only be un-
necessarily burdened thereby.
The attorney general, at NV sugges-
tion, has drafted a federal incorpora-
tion bill, embodying the views I have
lattempted to set forth, and 1t will be
lat the disposition of the appropriate
committees OF congress.
(Signed) William H. Taft,
The White House, Jan. 7, 1910.