El Paso herald. (El Paso, Tex.) 1901-1931, 1910-02-10
THE COMMISSIONER
SAYS t IS ONLY
REMEDY
Deepest Interest of the Gen
Grafton Lies in Control
of Trusts.
involves American Ideal OF
Equality Under Law,
He Says.

Washington, D. C., FEB. 1O.-ln MS
annual report, Herbert Knox smith,
commissioner Of corporations, declares
that the deepest interest of this gener-
alton lies in the control OF its doml-
nant commercial forces; the issue is
moral, involving deeply our American
ideal of equal opportunity under the
law; it is financial, and on its outcome
depends the ultimate stability of our
business system He says:
The corporation has become the &C
cepted machinery for handfing these
forces. It is the artificial creature Of
the community. We have given It great
powers and exemptions not permitted
to the Individual. We have made 1t
effective We have likewise made it
capable of sinister misuse.
The corporation has concentrated
enormous commercial power in the
hands of a few men, At the same
time 1t has lessened their personal re-
sponsibility for the proper use OF that
power. Sense OF personal obligation TO
the community becomes submerged in
vast corporate entities. The resulting
abuses call for some restraint that shall
take the place of the old personal obli-
CATION Government supervision and
publicity of corporations must be that
substitute.
National IsSUc.
The issue is national; action by the
federal government is imperative under
its unquestioned power and duty to
regulate interstate commerce. The fed
eral government is the only adequate
authority; one of the primary motives
for it's creation was for a national con-
troll Of national business. Those di-
recting our great corporations have de-
ifberately nationalized them in size and
scope; they can not now be heard to
object to centralized control which
they themselves have made necessary
They have made their businesses truly
governmental IN their effect on the
people. They can not now deny that
the government is concerned therein.
As guardian of the nations welfare,
the government must see to ii that the
ordinary standards Of right and fair
ness. which restrain our individual citi-
zens, shall also be applied TO our great
modern businesses. It must make sure
that the business machinery OF the
country shall be preserved from such
misuse as would ultimately destroy it.
Conditions confront US which are
now determining the country's future
A significant process of evolution is go
ing on within our commercial organiza-
ton Two types OF corporate managers
are struggling for its control. The one
0ike most business mem bases his
success upon increasing the efficiency
Of his organization: he acquires and
holds his business by giving better ser
vice~or lower prices. The public thus
shares the benefits OF his efficiency. He
builds up our industrial strength.
Gripping Competitors.
The other succeeds, not by his own
merit, but by Gripping the efficiency
of competitors: by railway rebates. by
unfair competition, by commercial op-
preston, by public rights monopolized
for private gain; not by giving better
service, but by unfairly preventing 9TH
ers from giving any service. If this
process continues, II Will surrender the
control of our commercial forces to the
commercial pirate, to the injury Of
the nation and the unfair ruin OF indi- |
viduals.
Through the bureau Of corporations. |
the federal government has deliberately /
taken the side Of the fair user Of our |
commercial forces The instrument OF |
the bureau in fits work has been eff |
cient publicity" Tt has relied on the |