Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-01-13
SENATE LAWYERS BUSY DIS
sEcTlNG PROPOSED FEDERAL
INCORPORATION.
WOULD GIVE NEW LIFE LEASE
TO OIL AND TOBACCO TRUSTS
If Dissolved BY Courts These Concerns
Would Immediately Incorporate I'm
der New Names-states, However,
Could Stop Them From Doing Inter-
state Business.
Especial Correspondence

| Especial Correspondence
Washington, Jan. 13.-The stock ar
gument that is going to be used against
the measure for federal incorporation
of concerns doing an interstate bust
ness, is that it will breathe the breath
of life back into the tobacco trust and
the Standard Oil Company, in case the
supreme court decisions in the pending
cases against those companies dissolve
| them.
| Both cases are now pending in the
supreme court, awaiting the final word
from the highest tribunal. Both have
been won by the government in the
circuit court of appeals. Both are gen.
orally expected to be won by the gov
eminent in the supreme court. There
is no mistaking the confidence which
| the department of justice entertains,
Of it's success in these cases. Especial
ly in the Standard Oil case, they have
been from the time when they secured
their telling evidence, positive of WIN
ming and securing a decree ordering
dissolution of the corporation.
Two of the best lawyers in the SEN
ate have recently expressed the very
confident opinion, that if the federal
incorporation act passes, the Standard
and the tobacco company will prompt
ly avail themselves of the privilege of
Incorporating under it.
What is Expected to Happen.
what will be gained" demanded
one of these senatorial lawyers, "if a
corporation which has been adjudged
of violating the Sherman act, and
ordered dissolved, is permitted to step
over to the department of commerce
and labor file application for federal
charter, announce it's purpose of COM
plying with all the requirements of the
federal incorporation act, and get a new
lease of life from the national govern
ment?
There seems to be no doubt that this
will be possible More than that, a
good many people strongly suspect that
the tobacco and oil concerns are more
deeply interested in securing this leg
islation than anybody else. They can
be dissolved under the Sherman law,
but that dissolution can not be made
to prevent their Incorporating, under
new names and new terms, under the
federal law If the same management
is to persist, the same men are to con-
troll, the same proportion of the entire
volume of business is to be controlled,
the same ability to suppress competi-
ton is to be assured, what will have
been gained by dissolving them under
the Sherman acts?"
! These questions are going to be
asked good many times before the
federal incorporation measure gets
thru either house 1T is known that a
number of the keenest lawyers in
Washington, as well as many more in
| New York and elsewhere, have been
studying the federal incorporation
proposal with especial view to figuring
its effect in regard to those two prose-
cutions, and to others that may be un-
| dertaken in future under the antitrust
law. Some of these have. gone so far
that they are convinced a most serious
mistake would be made to pass the
m Measure.
Then there is another feature of it
which other critics are pointing out.
State Could Shut Them Out
Congress, of course, can probably
incorporate companies for interstate
yers, "but it has no power to give
them authorization to do interstate bus
mess. The result would be that if one
of these federal concerns had author
| ity to do business under the federal
law, it could be shut out of any given
state, as to trade entirely within that
states borders, by a state law. Thus
the Standard Oil Company could carry
rs, infn {ofa fy,oI
states; but these transactions in it's
goods, after they reach a state, which
are confined to that state, could be
stopped. This will be found on exam
nation to be another grave question"
The whole question of whether
federal incorporation program can be
instituted without largely destroying
the Sherman acts effectiveness, is GO
ing to enter largely into the discus
sion. The understanding is that the
organizations in both houses are
strongly in favor of such measure.
The president is known to favor it. In
timation is very vigorously INDUCED.
that the administrations support of the
measure may provide the issue on which
certain of the insurgents will break
with the administration and charge
openly that its program would be the
means of saving the two great indus
trial trusts which have been brought
successfully to bar under the Sherman
act There is constant muttering
against what it charged to be a purpose
ito destroy the Sherman law as soon
as 1T has proved it's usefulness.
An Anecdote OF Grisas.
The late James M. Griggs, represen-
tative from Georgia, was chairman of
the democratic congressional CAMPAIGN
committee in 1904 and 1906, and since
his death few days ago his friends
have been telling some of the good
stories about his fier in national pol
i itics.
Mr.. Griggs was an awfully good
fellow but he didn't claim to know
much about national politics. More than
that, democracy was ait a sad discount
in those days of Roosevel's domination,
when half the democrats believed in
Roosevelt and regarded him as about
las good a democrat as he was repub-
lican. Consequently Mr.. Gfiggs in both
years found himself without either
funds or hopes.
But he made a good showing of
noise; he was good on publicity, and
his claims bureau was the greatest ever
attached to any national committee.
4 mo difference about the figgers so
they're big enough" he used to say
when he was importuned for esti-
mates.
Were sure winners he would say.
"See that desk? If I'd show you what
live got in 1T, you'd know it,