The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-03-07
CornmitteeM Sees
Danger in National
Incorporation Bill.
WILL.NOTVOTEF FOR.
TAF'T'S PET SCHEME
North Carolina Congressman Be.
lieves Great Corporations Favor
Its Passage, as They Gould
II Then Deal" With One
Man Instead Of
Many.
fspecial 10 The Tim es. Dispatch.

Mdny.
wasSnstd1 wsRSsGis e Tils 5 Times Mala MRsnstf srhe
Following statement by Representative
Webb, OF North Carolina. one OF the
leading members OF the House Judici-
Fry Committee. voices the sentiment
OF many Democrats on one OF Presi-
dents Tafts pet schelnes:
II ain afraid Of the national incor-
poration bill. which Is now before our
committee. as advocated by Mr.. TAFT,
nnd seems 80 revolutionary even to
him that he hesitates to urge Its pass
Age mt this session or Congress-. Moth
Ing like 1t has ever before been advo-
Gated by President In the history OF
our country. The President. along
with the latter day loose construction
lists believes that under the authority
to regulate commerce." Congress has
notonlS the power to regulate the ar
ticles OF commerce, but also to create
corporations and then under the guise
sof regulating the corporation. to rcgu-
lnteSall persons connected with such
corporations. etc. This bill would put
all corporations SO created. their man;
nfactureH and the persons owning them
in all their commercial affairs. In the
eiands of the Federal government and
out OF the Jurisdiction OF the States
Ultimately. l presume. no State would
ne permitted to charter corporation
That shipped any OF its products be-
Eond the State line. Such n law will
1ooner or later deprive the States nf
4 tl,eir police power and transfer all
their litigation to the Federal courts.
Tor their domestic corporations would
tie controlled by Federal laws. and VI
tfmatelg pay all tax to the Federal
government.
The bill includes corporations with
100000 capital stock and upward. and
could eventually include those of s5,OoD
capital.
The bill is both revolutionary and
drastic, and is opposed TO the basic
and fundamental principles az our gov
= %crnment. in which the social and do
e1aestic a FAIRS of our people have al
ways been left In the care OF the
States.
Arbitrary and InquIaltorlni Powers.
THE law clothes the COMMISSIONS ar
OF Corporations with unheard of
risitatorial and arbitrary powers No
officcr In modern history has been
clothed with such in1uisitoriaI and au-
1ocratic powers. The bill. among other
things gives him the right to send an
agent at any time to pounce upon a
counts. and look at and examine its
private correspondence, and II he
thinks proper, close up and practically
destroy tho organization.
THE passage of this bill would lodge
I IN the hands of an unscrupulous Presi-
dent, through his Commissioner ofCor-
porations the most powerful weapon
ever given to or used by one man in
i.hc destruction OF government by
n >, 49, .tas.
nary privileges or grants OF money, for
controlling the business Interests OF
the country, for party corruption and
for perpetuattng himself or his party
dn Office
Taste OF Federal Supervision.
Corporations are ALREADY getting a
taste of Federal supervision and tax
alton under the income tax provision
In the last Republican tariff act. The
dn1ulsltorial, arbitrary and publicity.
features of that method Of collecting
tax and regulation are mild and inno-
cent tscompared to what will take place
1 in case all our commercial corporations
take out charters and become subject
10 government inspectors, revenue off :
GERS and other officers directed from
.xvashinsto and controlled by one
man.
In my opinion, the law is absolutely
IN viola tiohg of the United States Com
Estitution and beyond the power OF tho
Federal government. for the govern
ment is ono OF granted powers, and
nowhere among the eighteen granite ed
powers In the Constitution can be
found the slightest authority for
creating or charterinE private corpo-
/ 8rations. S55 4 3
Trusts Want the Rlll.
me ostens1 bio obj ject of the pro-.
posed law Is to better control tho,
trusts, but there is a strong suspicion.
Z and indeed positive evidence, that the
great trusts arc secretly urging It's
passage. They prefer to deal with
only one man. the Commissioner OF
Corporate than to be bothered with
the legislatures and executives of
forty-siX States. Sai
II they can secure the massage OF.
this bill, which will place them out
of reach OF the States, then they VIII
4 flourish like the green bay tree on op-
preston and no bbery OF tho people. Tt
would be SO much easier for these
xiantsc corporations to control one ma n,
the commissioner Of Corporations than
TO control the people of ali 81 the
Z States.
The papers state that Mr.. Perkins.
the ight hand man of j. r. Morga an,
came out 5of the Presidents oftice one
Afternoon after Inspecting and approv-
Ing this bill, and the next day itbwas
sent over to Congress to be made
s 13laW,
Others Who Will Favor the nil.
''Others who Will no doubt advocate
shhs bill are those who clamor tor.
uniform labor laws--both the philan-
thronlsts and those W no see the crip-
5pling OF the South in the passage Of
such laws. It is already proposed and
5erlously cont tended that the Federal
government should pass a law exclud-i
Ing all good n manufacturers from
Eommerce that are not made according
hogsuoh national labor laws--both as
10 hours Of work and ago OF employee
This new at1onal incorporation idea
would q live these gpep RI le poWer q con-
5Arol our r labor by an indIrect meth
Hhey tn IN k,Ewh en- the United State tesS Isl a.
lContlaued on Second PaEe,l