The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-02-18
Foreign Commerce

| y
do. No doubt our form of government
is less calculated for that Kind OF sup
port We need not necessarily do what
our competitors do, but we will nndoubt-
| eddy be compelled to do that which Is
necessary to meet what they do. We are
now engaged in establishing relations
| with foreign countries, looking 10 the
opportunity of our commerce iii then
midst We are shaping our treaties to
secure open doors and equal rights with
other countries. We do all this in the
expectation that we shall have CONNER
cial enterprise which has accepted every
other challenge. and which shall be pre-
pared to meet this situation
In what form shall this commercial
enterprise make its appearance in other
countries il not in the form OF the ac-
cepted corporate organization? Does 1t
stand to reason that we can successfully
depend upon corporation large enough
to engage in foreign commerce, and at
the same time too large to be admitted
by most of the states composing our own
union? VIII it be seriously contended
that we will be blind enough to encour-
age commercial organization to engage
in foreign business under federal pro-
lection. and at the same time permit
individual states Of the union to cut the
pins from under this same commercial
organization at home? We cannot hope
to succeed with so inconsistent and ruin
GUS a system. II cannot be possible that
our country proposes to have the national
government make treaties and prepare to
intercede for justice and protection or
our commercial enterprise abroad, ana
at the same time deal with organizations
to whom it sustains no relation, and as to
whom IL can exercise no authority either
for the purpose of control or protec-
ton.
Even more anomalous if possible would
be our country's attitude to foreign cor
porations admitted under reciprocal irea-
ties. Such foreign corporations would
necessarily by force of treaty be adj
mttted into all parts Of our country, as
out companies would enter foreign coun-
tries unhindered. We would therefore be
met by the glaring inconsistency that
foreign corporation may by federal au-
thority enter all states, while domestic
corporation may be excluded from all
states but the one of its creation.
Reflection upon this condition appears
to me leads to the answer that no coun.
try can seriously entertain the idea of
prospecting commercially under system
which is inherently so inconsistent. Apart
from all the embarrassments which an
tagonistic and conflicting state legisla-
ton has so far created, it appears to me
that contemplation of the future of our
foreign commerce in itself absolutely set
ties the need for an intelligent, bold and
comprehensive scheme for the organiza-
ton of commercial enterprise under the
same authority under whose charge that
enterprise is to go forward.
"3. OF course, doubt will be expressed
in many quarters as to the consequences
of the adoption of such a scheme. 1t
may be admitted that the plan is so
comprehensive, in a manner perhaps so
revolutionary, that Inconvenience and
new embarrassments and surprises must
necessarily arise. 1t is perfectly true
that every new law is apt to have some
results that have not been looked for. it
is perfectly true that serious questions
will arise with respect to the subject OF
taxation. No doubt the state up to this
time have obtained a large revenue, some
Of IT naturally much of 1t accidentally,
from the business corporations which so
far have held the field. No doubt some
confusion will result IL the federal cor
poration is authorized and comes into
being But it ought to be remembered
that the creation of a federal corpora
ton is at all times absolutely within the
control OF the people OF the United States.
The property of the national bank is as
sessed and pays taxes just as the Con-
gress determines, having III nina always
the needs and the rights of individual
localities. In a similar manner no I'M
surmountable difficulty is presented with
respect to the federal corporation. On
the contrary there is no reason why the
federal corporation law should not pro-
vide for the assessment OF tangible prop
erty, and for the taxation of shares in
such manner that exact justice and pro-
lection will be afforded individual states
and localities.
Escape From Law
Again the question has been mooted in
some quarters whether a federal corpora
ton statute would not permit large con-
Germs to escape some of the laws inhibi-
tons which are now provided against
them In that respect I entertain no fear