River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1910-01-13

such corporations to file full ana 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 COM
pany with subordinate corporations in
different states which has been such an
effective agency in the creation of the
great trusts and monopolies
If the prohibition of the antitrust act
against combinations in restraint or
trade is to be effectively enforced. it is
essential that the national government
shall provide for the creation of natonai
corporations to carry on legitimate
business throughout the United States.
The conflicting laws of the dinersnt
states of the union with respect TO tor-
eign corporations make it difficult. II not
impossible, for one corporation 10 comply
with their requirements so as to carry
on business in a number of dlTerenl
states.
To the suggestion that this proposal of
federal incorporation for Industrial COM
binations is intended to furnish them
refuge in which to continue ndustrlal
business under federal protectlon. II
should be said that the measure contein-
plated does not repeal the sherman anu
trust 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 ana al
vance of the highest Industrial efnclehcy
without permitting industrial abuses.
Sure to Meet Opposition.
Such a national incorporation law will
be opposed, first, by those VINO peheVe
that trusts should be completely pIohen
up and their property destroyed. IL WIZ
be opposed, second by those who DOUBT
the constitutionality of such tederal IN
CORPORATION and even if it is valid, OBJECT
to il as too great federal centralizatlon'
1t will be opposed, third, by those VINO
will insist that mere voluntary tllcoI
poration like this will not attract 10 ltS
assistance the worst of the oLehuers
against the antitrust statute anu VINO
will therefore propose instead OF IT sys-
ten, of compulsory licenses for all fed
eral corporations engaged in interstate
business.
Let us consider these objections in their
order The government is now trying 10
dissolve some of these combinations anu
II is not the intention of the government
to desist in the least degree In It's ellolI
to end these combinations which are TO-
country; that where it appears that the
ACQUISITION and concentration OF properly
go to the extent of creating monopoly
of substantially and directly restraining
interstate commerce, it is not the lnten-
ton of the government TO permit 'hlS
monopoly to exist under tederal lhcoI-
poration or to transfer to the protecting
wing Of the federal government of "a
state corporation now violating the Sher-
man act But 1t is not and should NOT
be, the policy of the government TO pre-
vent reasonable concentration or capitai
which is necessary to the economic deVel-
opment of manufacture, trade ana COM
MERGE This country has shown power
of economic production that has aston
ished the world, and has enabled us to
compete with foreign manufacturers In
MANY markets 1t should be the care OF
the government to permit such concen-
tration of capital while keeping open the
avenues of individual enterprise, and the
opportunity for man or corporation
with reasonable capital to engage In
business. If we would maintain our
present business supremacy, we should
give to industrial concerns an oppor-
tunity to organize or to concentrate their
legitimate capital in a federal corpora
ton, and to carry on their large business
within the lines of the law.
May Doubt Constitutionality.
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 on that
commerce, it would seem to be within its
hann 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, 1t 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 as incidental to
the carrying on of that commerce it may
be within the power of the federal gov
eminent to authorize the manufacturer of
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.
Even those who are willing to concede
that the supreme court may sustain such
federal incorporation are inclined to op-
pose it on the ground of its tendency to
the enlargement of the federal power at
the expense of the power of the state.
It is a sufficient answer to this argument
to say that no other method can be sug-
gested which offers federal protection on
the one hand and close federal supervi-
sion on the other of these great organi-
cations that are in fact federal because
they are as wide as 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 themselves of such law, be-
cause the burden of complete federal su-
perviSon and control that must certainly
be imposed to accomplish the purpose Of
the incorporation would not be accepted
by an ordinary business concern. The
third objection, that the worst offenders
will not accept federal Incorporation, is
easily answered. The DEGREES of injunc-
ton recently adopted in prosecutions I'M
der the antitrust law are so thorough
and sweeping that the corporations af-
fected ~ them have but three courses
before them:
First, they must resolve themselves
into their component parts in the differ
ent states, with a consequent loss to
themselves 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-
tinue their business in violation of the
federal statute, and thus incur the PEN
alties of contempt and bring on an in
evitable criminal prosecution of the indi-
viduals named In the decree and their
associates; or
urI{.5 thew yn11St reOr.pa niza and accaDt