The Mobridge news. [volume] (Mobridge, Walworth Co., S.D.) 190?-1917, 1910-01-14
Asks National Corporation Law.

materially leSScneu, anu III COupttlttbH
with forei Sn manufacturers our foreign
trade has been greatly increased
Asks National Corporation Law.
Il therefore recommend the enactment
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, protect
ing them from undue Interference by the
states and regulating their activities so
as 10 prevent the recurrence. under ma
tional auspices, of those abuses winch
have arisen under state control Such Il
law should provide for the issue OF stock
Of such corporatiOnaS 10 an amount equal
only to the cash paid i'll on the stock;
and if the stock be issued for property,
then at fair valuation a,certained UNI
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
and personal property only OF such cor
porations to the same taxation as inn
posed by the states within which II may
be situated upon other similar property
located therein, and ii should require
such corporations 20 file full and com
plete reports OF their operations 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
pOrations except for special reasons upon
approval by the proper federal author
ity), thus avoiding the creation, under
national auspices. Of the holding company
with subordinate corporations In different
states which has been such 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, it is essen
tial that the national government shall
. ton, Of oil
poratons to carry on legitimate bust
ness throughout the United States. The
conflicting laws of the different states OF
the union with respect to foreign corpora
tions make it difficult if not impossible,
for one corporation to comply with their
requirements so as to carry on business
in number of different states
''TO 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
should be said that the measure conteW-
plated does not repeal the Sherman anti
trust law and is not to be framed 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 national incorporation law will
be opposed, first. by those who believe
that trusts should be completely broken
up and their property destroyed. 1t will
be opposed. second, by those who doubt
the cOnStitutionality OF such federal in
corporation and even If it is valid. object
to it as too great federal Capitalization.
1t will be opposed. third, by those who
poration like this will not attract to its
assistance the worst OF the offenders
ag ainst the antitrust statute and who
will therefore propose instead or IT sys-
TEN of compulsory licenses for all feder-
al corporations engaged In interstate
business
Let us consider these objections in
their order The government is now try
ing to dissolve some of these combina-
tions and it is not the intention Of the
government to desist in the least degree
which are to-day monopolzng the com
mcrCe Of this country: that where 1t APP
pears that the acquisition and cOncen-
tration of property go to the extent OF
creating a monopoly of substantially and
directly restraining interstate commerce.
it is not the intention of the government
to permit this monopoly to exist under
federal incorporation or to transfer to
the protecting wing Of the federal gov
ernmen Of a state corporation now viO-
lating the sherman act. But 1t is not.
ernment to prevent reasonable concen-
tration OF capital which is necessary to
the economic development Of manufac-
ture, trade and commerce.
Nay Doubt Constitutionaiity.
"Second-There are those who doubt the
constitutionality of such federal incOrpor-
alton. The regulation of interstate and
foreign commerce is certainly conferred
in the fullest measure upon congress- and
If for the purpose of securing in the most
thorough manner that kind of regulation,
congress shall insist that it may provide
and authorize agencies to carry that
commerce. ii would seem to be within its
power. this has been distinctly affirmed
with respect TO railroad companies doing
an interstate 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 into
foreign countries, may the same power
not be asserted? Indeed, it is the very
fact that they carry on interstate com
merce that makes these great Industrial
concerns subject to federal prosecution
and control How far incidental to
the carrying on of that commerce il may
be within the power Of the federal gov
goods, is perhaps more open to discus
sion, though a recent decision of the SUI
preme court would seem TO answer that
question in the affirmative
The third objection. that the worst Of
tenders will not accept federal incorpora-
ton, is easily answered The DEGREES OF
injunction recently adopted in prosecu-
tons under the antitrust law are so
thorough and sweeping that the corpora
tions affected by them have but three
courses before them:
First, they must resolve themselves
into their component parts in the differ
ent states, with consequent loss TO
themselN es of capital and effective organ
ization and to the country OF concen-
trated energy and enterprise; or second.
In defiance of the law and under some
secret trust they must attempt to con-
unue their business in violation OF tho