Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1910-01-08

Is essential that the uafioDai govern
ment shall provide for the creation of
national corporations 70 carry on a
legitimate business throughout the
United States. rhe conflicting laws OF
the different states of the Union with
respect 20 foreign corporations make
IL difficult IL nor Impossible for one
corporation to comply with their re-
gniremenfs so as to carry on business
m number of different states.
To the suggestion that this proposal
of federal incorporation for industrial
combinations Is intended to furnish
Them a refuge III which to continue in
dustrfal abuses under federal protec-
ton II should be said that the meas
ure contemplated does not repeai the
Sherman antitrust law and ia nor To
be framed so as to permit the doing
of the wrongs which 1t is the nnrpose
of that low to prevent. but only TO fos-
ter a continuance and advance of the
highest industrial efficiency without
permitting Industrial abuses
Such national incorporation Aw
will be opposed. first. by those who be-
lieve that trusts should be cornnietaiv
broken up and their property DESTROYED.
1t will be opposed. second by those
who doubt the constitutionaIity of such
federal Incorporation and, even IL IL In
valid, object to it as too great federal
Capitalization. 1t will be opposed.
third, by those who will insist that a
mere voluntary Incorporation like this
will not attract to it's acceptance the
worst of the offenders against the an
thrust statute and who will therefore
propose instead of it system of COM
pulsory licenses for all federal corpo-
rations engaged in interstate business.
Objections ForestaIIed.
Let us consider these obi .ctjons In
their order. The government is now
trying to dissolve some of these COM
bInations, and it is not the intention
OF the government to desist in the
least degree In its effort to end those
combinations which are today monop-
olizing the commerce of this country.
But 1t Is not and should not be the
policy of the government to prevent
reasonable concentration Of capital
which is necessary to th.. economic
development of manufacture, trade
and commerce. IL we would maintain
our present business supremacy we
should give to industrial concerns an
opportunity to reorganivp and to con-
centrate their legitina I, capital in a
federal corporation.
the constitutionality of such federal
incorporation. The regulation of inter-
state and foreign commerce Is certain
ly conferred in the Ilest measure
upon congress, and If for the purpose
of securing In the most thorough man
ner that kind of regulation congress
shall insist that 1t may provide and
authorize certain agencies to carry on
that commerce it would seem to be
within its power. This has been dis
tinctly affirmed with respect to rail
road companies doing an interstate
business and interstate bridges. The
power of incorporation has been ex-
ercised 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 commerce, may the same
power not be asserted?
Even those who are willing to con-
cede that the supreme court may sus-
tain such federal Incorporation are in
clined to oppose 1t on the ground of
its 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 method can be suggested
which offers federal protection ON the
one hand and close federal supervision
on the other of these great organiza-
tons 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 centraliza-
ton of federal power under this act
likely to be excessive. Only the largest
corporations would avail themselves OF
such a law, because the burden of
complete federal supervision and con-
troll that must certainly be imposed to
accomplish the purpose of the incor-
poration would not be accepted by an
ordinary business concern.
The tlurd objection, that the worst
offenders viii not accept federal in
corporation. IS easily answered. The
DEGREES of injunction recently adopted
i'm prosecutions under the antitrust
law are so thorough and sweeping
that the corporations affected by them
have but three courses before them:
First. they must resolve themselves
into their component parts in the dlt-
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 I'M
der some secret trust they must at
tempt to continue their business in VIC
lation of the federal statute and thus
incur the penalties of contempt ana
bring Oh an inevitable criminal prose-
cution of the individuals named In the
decree and their associates; or,