The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-08


by Congress of general law providing
for the formation of corporations to en-
gage In trade and commerce among the
states and with foreign nations and reg
ulating their activities, so as TO prevent
the recurrence, under national auspices,
of those abuses which have arisen under
state control.
Such law should provide for the issue
of stock of such corporations to an
amount equal only to the cash paid In
on the stock, and II the stock be issued
for property, then at a fair valuation, as
eertained under approval and supervision
of federal authority, afts< a full and COM
plete disclosure of all the facts pertain
ing te the value of such property and the
Interest therein of the person to whom 1t
is proposed to issue stock in payment of
such property. 1t should subject the real
and personal property only of such cor
porations to the same taxation as Is i'm
posed by the states within which 1t may
be situated upon other similar property
located therein. and 1t should require such
corporations to file full and complete re-
ports of their operations with the depart
lnent of commerce and labor at regular
intervals
Holding of Stock.
Corporations organized under this act
should be prohibited from acquiring and
y
k(except for special reasons upon app
}proval by the proper federal authorl-
ty) thus avoiding the creation, under
national auspices of the holding CON-
pany with subordinate corporations in
different states. which has been such
an effective agency in the creation of
the great trusts and monopolies.
II the prohibition of the antitrust
act against combinations in restraint
of trade is to be effectively enforced,
II Is essential that the national gov
eminent shall provide for the creating
of national corporations to carry on a
legitimate business throughout the
United States.
The conflicting laws of the different
states of the Union with respect to for
eign corporations make it difficult, If
not impossible for one corporation to
comply with their requirements so as
to carry on busine ssi ma number of
different states.
To the suggestion that this proposal
of federal Incorporation for Industrial
combinations Is intended to furnish
them a refuge in which to continue in
dustrial abuses under federal protec-
ton, 1t should be said that the measure
contemplated does not repeal the Sher-
man antitrust law and is not to be
framed SO as to permit the doing OF
the wrongs which it is the purpose of
I0dL law 10 prevent, DuL OuIy W luSlcI
continuance and advance of the nigh
est Industrial efficiency without pei
hitting industrial abuses.
Opposition to Plan.
Such q national Incorporation law
will be opposed, first, by those who
believe that trusts should be completely
broken up, and their property de-
stroyed. 1t will be opposed, second, by
those who doubt the constitutionality
of such federal incorporation, and even
If It is valid, object to 1t as too great
federal Capitalization. 1t will be op-
posed, third, by those who will insist
that a mere voluntary incorporation
like this will not attract to its ac-
ceptance the worst of the offenders
against the ANTITRUST statute and who
will therefore propose Instead of 1t
system of compulsory licenses for all
federal corporations engaged in inter-
state business.
Let us consider these injunctions in
their order. The government is now try
ing to dissolve some of these combina-
TONS and 1t Is not the intention of the
government to desist in the least degree in
Ats effort to end these combinations which
tare today monopolizing the commerce of
this country. Where it appears that the
acquisition and concentration of property
go to the extent of creating monopoly
ing Interstate commerce, 1t is not the in
tention of the government to permit this
monopoly to exist under federal incorpora-
ton or to transfer to the protecting wing
of the federal government the state cor
poration now violating the Sherman act
But 1t is not, and should not be- the
policy of the government to prevent reas-
enable concentration OF capital which is
necessary to the economic development of
manufacture trade and commerce. This
country has shown a power of economical
production that has astonished the world,
and has enabled us to compete with for
eign manufacturers in many markets.
Capitalization OF Capital.
1t should be the care of government
to permit such concentration of capital,
while keeping open the avenues OF indi-
vidual enterprise, and the opportunity
for q man or corporation with reasonable
capital to engage in business. If We would
maintain our present business suprem-
acy we should give to industrial concerns
an opportunity to reorganize and to con-
centrate their legitimate capital in a fed
eral corporation and to carry on their
large business within the lines of the
law.
Second, there are those who doubt the
constitutionality of such federal incor-
poration. The regulation OF Interstate and
the fullest measure upon Congress, and
for the purpose of securing in the most
Who cugh manner that kind OF regulation
Congress- shall insist that it may provide
and authorize certain agencies to carry on
that commerce. 1t would seem to be within
it's powers.
This has been distinctly affirmed with
respect to railroad companies doing an
interstate business and interstate bridges
The power Of Incorporation has been ex-
ercised 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
into foreign commerce. may the same
power not be exerted? Indeed, it is the
very fact that they carry on interstate
commerce that makes these great indus
trial concerns subject to federal prose-
cution and control. How far as inciden-
tai to the carrying on Of that commerce
1t may be within the power OF the fed
era1 government to authorize the manu-
facture of goods, is. perhaps, moro open
to discussion. though a recent decision of
the supreme court would seem. to answer
that question in the affirmative.
Enlargement Of Power.
Even those who are willing to con-
cede that the supreme court may sus-
- t.. ~,,ot foAoroI instrumentation ora In