Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-01-07

exercised by Congress and upheld by
the Supreme Court I'm this regard. Why.
then. with respect to any other form OF
interstate commerce Ike the sale ~
goods across state boundaries and into
foreign commerce. may the same power
not be asserted? Indeed. il is the very
fact that they carry on interstate COM
merce that makes these great Industrial
concerns subject to federal prosecution
ana control How far as incidental to
the carrying on OF that commerce Il may
be within the power OF the federal gov
eminent to authorize the manufacture or
goods is perhaps more open TO discus
sion, though a recent decision OF the Su-
preme Court would seem to answer that
question in the affirmative
Even those who are willing to con-
cede that the Supreme Court may sus-
tain such federal incorporation are
| inclined TO oppose il on the ground OF
its tendency to the enlargement OF the
federal power at the expense OF the
power OF the states. 1t is a sufficient
answer to this argument to say that no
other method can be suggested which
offers federal protection on the one hand
and close federal supervision on the other
| of these great organizations that are in
fact federal because they are as wide a.
the country and are entirely unlimited in
| their business by state lines. Nor is
the Capitalization OF federal power under
this act likely to be excessive. Only the
largest corporations would avail them
of complete federal supervision and con-
troll that must certainly he imposed to ac-
complish the purpose OF the incorpora-
ton would not be accepted by an ordi-
nary business concern.
Objection Easily Answered.
The third objection, that the worst OBJ
tenders will not accept federal incorpo-
ration. is easily answered. The DEGREES
al I'M aAa Cd in
cutions under the antitrust law are 50
thorough and sweeping that the corpo-
rations affected by them have but three
course before them:
| First. they must resolve themselves into
their component parts in the different
states, with consequent loss to them
selves of capital and effective organize
ton and to the country OF concentrated
energy and enterprise; or
| Second, in defiance OF law and under
! some secret trust they must attempt to
| continue their business n violat on o. the
| federal statute, and thus incur the PEN
| alties of contempt and bring on an in
| evitable criminal prosecution OF the in
| dividuals named in the decree and their
| associates. or.
| Third. they must reorganize and accept
| in good faith the federal charter / sug-
gest.
A federal compulsory license law, urged
| as substitute for federal incorpora-
| tioil law. Is unnecessary except TO re3cn
| that kind of corporation which. by virtue
| of the considerations already advanced.
| will take advantage voluntarily of an in
| corporation law, VIII lie the other state
| corporations doing an interstate business
| do not need the supervision or the regu-
| lation of a federal license. and would
| only be unnecessarily burdened thereby.
The Attorney General. at my sugges-
| ton, has drafted a federal Incorporation
| bill. embodying the views | have at
| tempted to set forth. and it VII be at the
| disposition of the appropriate committees
| of Congress. WIN. H. TAFT.
The White House, January z. 1910.