Ottumwa tri-weekly courier., 1910-01-08

prosperity or destruction affects the
comfort not only of stockholders. but
of millions of wage earners, employees
and associated tradesmen must neces-
sartly tend to disturb the confidence
of the business community, to dry up
the now flowing sources of capital
from Its places of boarding, and pro-
duce halt in our present prosperity
that will cause suffering and strained
circumstances among the innocent
many for the faults of the guilty few.
The question which wish in this mes
sage to bring clearly to the considera-
ton and discussion of congress is
whether In order to avoid such pos
sible business danger something can
not be done by which these business
combinations may be offered means,
without great financial disturbance,
OF changing the character, organiza-
! tion and extent of their business into
one within the lines OF the law under
federal control and supervision, secur-
ing compliance with the antitrust
statute
Federal incorporation Law.
therefore recommend the enact
ment by congress of a general law
providing for the formation of corpora
tions to engage in trade and COM
merce among the states with foreign
nations, protecting them from undue
interference by the states and regu-
lating their activities, so as to prevent
the recurrence, under national aus
pices,of those abuses which have arisen
under state control. Such a law should
provide for the issue of stock of such
corporations to an amount equal only
to the cash paid in on the stock; and
If the stock be issued for property.
then at fair valuation, ascertained
under approval and supervision of fed
eral authority, after full and COM
plete disclosure of all the facts per-
tanning to the value of such property
and the interest therein of the persons
to whom 1t Is proposed to issue stock
IN payment of such property. 1t should
subject the real and personal property
only of such corporations to the same
taxation as is imposed by the states
within which 1t may be situated upon
other similar property located there
IN, and 1T should require such corpor-
ations to file full and complete reports
| OF their operations with the depart
ment Of commerce and labor at regll-
lar intervals. Corporations organized
under this act should be prohibited
from acquiring and holding stock in
other corporations Except for special
reasons upon approval by the proper
federal authority), thus avoiding thu
creation, under national auspices, of
the holding company with subordinate
corporations in different states, which
has been such an effective agency In
the creation of great trusts and mon
opolies.
Does Not Repeal Sherman Act.
If the prohibition of the antitrust
act against combinations in restraint
of trade is to be effectively enforced 1t
is essential that the national govern
ment shall provide for the creation of
national corporations to carry on a
legitimate business throughout the
United States. The conflicting laws of
the different states of the union with
respect to foreign corporations make
it difficult, If not impossible, for one
corporation to comply with their re-
quirements so as to carry on business
in number Of different states.
To the suggestion that this proposal
/ of federal incorporation for industrial
combinations is intended to furnish
them refuge in which to continue in
dustrial abuses under federal protec-
ton, it should be said that the mea-
sure contemplated does not repeal the
Sherman antitrust law and is not to
be framed so as to permit the doing
of the wrongs which it is the purpose
of that law to prevent but only to
foster a continuance and advance of
the highest industrial efficiency with
out permitting industrial abuses.
Answers Arguments Against Law.
Such national incorporation law
will be opposed. first, by those who
believe that trusts should be complete
ly broken UP and their property de-
stroyed. 1t will be opposed, second, by
those who doubt the constitutionality
Of such federal Incorporation and even
IL it Is valid, object to 1t as too great
federal Capitalization. 1t will be op-
posed, third, by those who will insist
that mere voluntary incorporation
| like this will not attract to it's accept
ance the worst of the offenders against
the antitrust statute and who will
therefore propose instead Of it a sys-
tenn of compulsory licenses for all fed
eral corporations engaged in inter-
| =
state business.
! Let us consider these objections in
their order. The government is now
trying to dissolve some of these com
binations, and it is not the intenention
to desist in the least degree in its ef-
forts to end those combinations which
are today monopolizing the commerce
of the country; that where it appears
that the acquisition and concentration
of property go to the extent Of Great
| ing monopoly or of substantially and
directly restraining interstate com
merce, it is not the intention of the
government to permit this monopoly to
exist under federal Incorporation or to
transfer to the protecting wing of the
federal government of the state cor
poration now violating the Sherman
act. But it is not, and should not be,
the policy of the government to pre-
/ vent reasonable concentration of capi-
tai which is necessary to the economic
| development of manufacture, trade,
and commerce. This country has
J shown a. power of economical produc
J. to- 1. ! St.r-f