Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-07

10 Industrial concerns an onnort,,,,...
~ reorgdnize and concentrates fhoir
legitimate capital In a federal cornn,.al
.ion and to carry on their large bnsi-
ness within the lines of the law.
heeoho, there are those who douht
the constitutionallty of such fenas-ss
incorporation. The regulation OF IL,
teiState and foreign commerce is COW
fanny conferred in tho fullest measni..
upon Congress. and If, for the purnn~,.
oil securing in the most thorough nonS
ner tnat KIND OF regulation Congress
o,,aho.In odh, llsist that II may provide ana
autnorlze certain agencies to carry on
tndt commerce, 1t would seem To M
Wlthln Its power This has been Az
unc.S affirmed with respect to reE.
road companies doing interstate hus7-
ness and interstate bridges. The povts
oi Incorporation has been exercised h;
congress and upheld hv the suprcrt.
court in this regard, Why. then vytt
respect TO any other form OF Intcrsta,.
commerce, like the sale of goods acre.
state boundaries and into foreign CON,
merce, may the same power NOT Nv.
asserted Indeed, II Is the very -forf
that tney carry on interstate commerce
that makes these great industriai can
Germs subject to federal prosecution
and control. o'
HOW Tar. as incidental to the carrv-
ing on OF that commerce IL NAV ha
WITHIN the power of the federal rov-
ernment TO authorize the manufacturc
OF goods. is perhaps open to discus
sion. though a recent decision OF thc
supreme court would seem to answer
that question in the affirmative.
INCREASING FEDERAL POWER.
Even those who arc willing 10 con-
cede that the supreme court NAV sns-
tain such federal Incorporation are in
cllned 10 oppose ii on the ground of
It's 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 methods can be suggested
which offer federal protection ON
the one hand and close federal super,
vision on the other, of the central or
ganiZations that are in fact federal
because they are as wide as the coun-
try and arc entirely unlimited In their
business by state lines Nor is the
Capitalization of federal power undcr
this act, likely to be excessive Only
the largest corporations would avafI
themselves of such a law because the
burden of complete federal Supervision
and control that must certainly be i'm
posed to accomplish the purpose OF
the incorporation would not be accept
ed by an ordinary business concern.
The third objection that the worst
Offenders Will not accept federal in
corporation. is easily answerable The
decrees of injunction recently adopted
in prosecutions under the antitrust
law are so thoroughly and sweeping
that the corporations affected by them
have but three alternatives before
them.
First. they must resolve themselves
into their component parts in the diff
ferent states. with a consequent loss to
themselves of capital and effective or
ganization and to the country of con-
centrated energy and enterprise, or.
Second. in defiance of law and under
some secret trust. they must attempt
TO continue their business in violation
of the federal statute and thus Incur
the penalties of contempt and bring
on an inevitable criminal prosecution
of the individuals named in the de-
cree and associates. or.
Third, they must reorganize and ar
cept in good faith, the federal charter
| suggest.
FEDERAL LICENSE LAW
a federal compulsory license law.
urged as a substitute for federal in
corporation law is unnecessary ex-
cept to reach that kind of corporation
| which by virtue of the considerations
already advanced. Will take advantage
| voluntarily of any corporation law
while the other state corporations do
ing an Interstate business do not need
the supervision or the regulation of a
| federal license. and would only be
unnecessarily burdened thereby
Tho attorney general. at my sug-
| eestion. has drafted a federal corpor-
alton bill embodying the views l have
| attempted to set forth and II will be
| at the disposition of the appropriate
| committee of Congress
(Signed) WILLIAM II. TAFT.
The White House. January I, 1910.