Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-18
CONTROL BY NATION
NageI for Federal Supervision
of Corporations.
FAvORS TAFT SUGGESTION
Topic of Secretary's Address Be-
fore Chicago Club.
SAYS GOVERNMENT HAS POWER
Cabinet Omcial Declares Existing
System Of Clashing State Laws
Is Intolerable and Change
Is Needed.
FAvORS TAFT SUGGESTION
SAYS GOVERNMENT HAS POWER

CHICAGO. February 1S.-Federal con-
troll of corporations is necessary to the
commercial preservation of the country.
declared Charles Nagel, Secretary of
Commerce and Labor Of the United
States, in an address before the Industrial
Club here's last night.
AS to the power of the national gov
eminent to authorize the organization Of
federal corporations Mr.. Nagel said there
could be no question. The existing sys-
tenn of clashing state laws-"system on
all sides at war with itself''-he regarded
as intolerable, and he assured his hearers
that the consequence of q federal corpO-
ration law, such as President Taft had
proposed, could make for nothing but
the general good.
The purpose of the government to regu-
late the corporations, In the opinion of
the Secretary. could not be considered as
attempt to encroach upon state au-
thority, but as q determination to "em-
ploy old authority for the solution of
new problems" A change of attitude
regarding the relation of national to state
authority. he believed, had come over the
country with the development of problems
too big for the state individually to
meet.
Situation Must Be Believed.
Among the more important problems"
said Secretary Nagel, appears to be the
question whether or not the national gov
eminent may and should authorize and
regulate the organization and conduct OF
federal corporations. Only q Few years
ago the bare suggestion Of such an idea
filled the public with dismay. The au-
thority was denied and the policy was
questioned. Today. the irreconcilable
conflicts to which ordinary business or
<aA to ofo tnc
have forced a general recognition that
something must be done to relieve the
situation" |
In considering the proposition. Secre- |
determined: First. the question Of the
authority; second. the con- |
ditions which make advisable such legis- |
lation, and third. the consequence of such |
legislation.
TT has seemed to me from the very
start" said the Secretary. ION the Ques-
ton of authority. that no one could sub
ject this question to q thoughtful consid-
Grafton without arriving at the conclu-
sion that the federal Congress must un-
doubtedly have the authority"
The charge against the states that they
had neglected their opportunities In deal
ing with the corporations, Secretary
Nagel said he did not believe, but he at
tributed the failure Of the states to cope
with the commercial conditions to, in
ability rather than to negligence,
Laws Vary Too Much.
Secretary Nagel recited, the development
Of business enterprises in the country.
showing the gradual growth to the big
corporation. and the attempts Of the
states to legisfate. and the resultant trou-
BILE because of the varying laws.
J, The need and purpose OF federal con-
troll of corporations. the Secretary stated
he believed to be simply TO place pri-
vate business company IN its commercial
activity precisely where the Constitution
undertook, to put the ~citisens OF the
United States.".
Another phase Of the question discussed
by the Secretary was the International
present time. he said, the country had
rested on the belief that development Of
domestic commerce was sufficient Other
countries felt the need OF international /
commercial development long ago. and the
United States. he urged, must do all that
was necessary to meet what its COM
petitors were doing In that line.
relations with foreign countries,'' con-
tinued the speaker. looking for the OPP
portunities of our commerce in their
midst. We are shaping our treaties to
other countries. In what form shall
this commercial enterprise make its ap-
pearance in other countries. II not in
the form Of the accepted corporate or
ganization?"
Within Control Of People.
The Secretary agreed that confusion
no doubt would result in the states win
the adoption of q federal corporation
law. and that serious questions would
arise with respect to the subject Of tax
alton. but he urged that 1t should at
all times be remembered that the crea-
ton of a federal corporation was within
the control Of the people Of the United
States.
AS to the apprehension that federal
corporation statute would permit large
concerns to escape some Of the laws
inhibitions provided against them, the
Secretary had no fear.
III the mere amount of capital" he
said, lis in itself to be recognized as an
objection. then there is no reason why
the federal law should not fix such a
limit as may be found reasonable and
safe. But 1t Is believed that the real
objection to large corporations In our
country goes to the monopolistic charac-