New-York tribune., 1910-01-08

control by the states with respect TO It's
purely local business.
GOOD" AND BAD" TRUSTS.
Many people conducting great businesses
have cherished hope and belief that in
some way or other line may be drawn
between good trusts and bad trusts
and that II is possible by amendment 70
the antitrust law TO make a distinction
under which good combinations may be
permitted to organize, suppress comper1-
ton, control prices, and do II all legally IL
only they do not abuse the power by TAX
ing too great profit out of the business
They point with force TO certain notorious
trusts as having grown into power through
criminal methods by the use of Illegal re-
bates and plain cheating and by various
acts utterly violative of business honesty
or morality, and urge the establishment OF
some legal line of separation by which
criminal trusts of this kind can be pun
lsned and they. on the other hand. be per-
business, Now, the public. and especially
tne business public. ought to rid them
selves or the idea that such distinction
Is practicable or can be introduced into the
statute. Certainly under the present anTi-
trust law no such distinction exists. IL
has been proposed, however, that the word
reasonable" should be made a part of the
statute, and then that il should be left 10
tne court TO say what is a reaSona bic re-
stra1nt of trade, what Is reasonable sup
preston of competition. what is a reason
able monopoly. / venture to think that
this is to put into the hands of the court
a power impossible to exercise on any con-
sistent principle which will insure the uni
formity of decision essential TO just sudg-
ment. II is to thrust upon the courts a
burden that they have no precedents to
enable them to carry and to give them d
power approaching the arbitrary, the abuse
OF which might involve our whole judicial
system in disaster
In considering violations OF the antitrust
law we ought, of course. not TO forget that
that law makes unlawful methods of car
business which npTOT6
sage were regarded as evidence OF buSl-
ness sagacity and success, and that they
were denounced in this act not because or
their intrinsic immortality, but because or
the dangerous results toward which they
tended. the concentration of industrial pow
er In the hands of the few, leading 10 op-
preston and injustice. In dealing there
fore. with many of the men who have uSed
the methods condemned by the statute for
the purpose of maintaining a profitable
business, we may well facilitate change
by them in the method of doing business,
zone of lawfulness without losing 10 the
country the economy of management py
which in our domestic trade the cost OF
production has been materially lessened
and in competition with foreign manufact-
urers our foreign trade has been greatly
increased.
Through all our consideration of this
grave question, however, we must insist
that the suppression OF competition the
sftenopt x mdno0oIizs % in nterstate com
merce and business are not only unIaw-
full. but contrary to the public good. and
that they must be restrained and punished
until ended.
FEDERAL INCORPORATION.
I therefore recommend the enactment BY
Congress of a general law providing for the
formation of corporations 10 engage in trade
and commerce among the states and with
foreign nations, protecting them from un-
due interference by the states and regu-
lating their activities, so as TO prevent the
recurrence under national auspices, of
those abuses which have arisen under state
control. Such iaw should provide for the
issue OF stock of such corporations 10 an
amount equal only to the cash paid in on
the stock; and If the stock be issued for
property, then at fair valuation, aScer-
tanned under approval and supervision OF
federal authority, after q full and complete
disclosure of all the facts pertaining 10
the value of such property and the interest
therein of the persons to whom II Is pro-
posed TO issue stock in payment OF such
property. 1t should subject the real and
personal property only of such corporations
to the same taxation as is imposed by the
states within which it may be situated upon
other similar properly located therein, and
Ii should require such corporations to file
full and complete reports of their opera
tionS with the Department OF Commerce
and Labor at regular intervals. Corpora
tons organized under this act should be
prohibited from acquiring and holding stock
in other corporations except for special
reasons upon approval by the proper fed
Eral authority, thus avoiding the creation
under national auspices of the holding COM
pany with subordinate corporations in diff
ferent states, which has been such an ef-
fective agency in the. creation OF the great
trusts and monOpOlieS.
IL the prohibition Of the antitrust act
against combinations IN restraint OF trade
is to be effectively enforced, 1t is essential
that the national government shall provide
for the creation of national corporations to
carry a legitimate business throughout
the United States The conflicting laws of
rJsH % rI,a TTr1in
spect TO foreign corporations make 1t diff
cult, 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
refuge in which to continue industrial
abuses under federal protection, IL should
be said that the measure contemplated does
not repeal the Sherman antitrust law and
is not to be framed so as to permit the
doing of the wrongs which it is the purpose
of that law to prevent but only to foster a
continuance and advance OF the highest in
dustrial efficiency without permitting IN
dustrial abuses.
Such a 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 op-
posed second. by those who doubt the con-
stitutionality of such federal incorporat ton
and even IL 1t is valid object to it as too
great federal Capitalization. II will be op-
a mere voluntary incorporation like this
will not attract 10 It's acceptance the worst
of the offenders against the antitrust stat
ute and who will therefore propose instead
of il system of compulsory licenses for
all federal corporations engaged in inter
state business.
DIRECTIONS CONSIDERED.
Let US consider these objections in theil
order. The government is now trying 10
dissolve some of these combinations. and
1t is not the intention of the government tc
desist In the least degree in its effort 70
end those combinations which are to-day
monopolizing the commerce of this coun-
try; that where 1t appears that the acquisi-
ton and concentration of property go to
the extent of creating monopoly or OF
substantially ana directly restraining inter
state commerce, ii is not the intention OF
the government 10 permit this monopoly 10
exist under federal incorporation or &c
transfer to the protecting wing or the
federal government a state corporation now
violating the Sherman act. But II IS not,
and should not be, the policy or the gov
eminent to prevent reasonable concentra-
ton Of capital which is necessary to the
economic development OF manufacture
trade and commerce This country mas
shown a power OF economical production
that has astonished the world. and has
enabled us TO compete with foreign manu-
features in many markets. II should be
the care of the government TO permit SUCH
concentration of capital while keeping open
the avenues of individual enterprise and
the opportunity for a man or corporation
with reasonable capital TO engage in bust
ness II we would maintain our present
business supremacy, we should give 10 in
dustrial concerns an opportunity TO re-
organize and 10 concentrate their legiti-
mate capital in a federal corporation and