Mexico Missouri message., 1910-01-13
able or can be introduced into the stat

able or can be introduced into the stat
''In considering violations of tho anti
trust law we ought, of course, not to
forget that that law makes unlawful,
methods of carrying on business which
before its passage were regarded as evil
dence of business sagacity and success,
and that they were denounced in this act
ity, but because of the dangerous re-
suits toward which they tended, the con-
eentration Of industrial power IN the
sion and injustice. In dealing, therefore,
with many of the men who have used
the methods condemned by the statute
for the purpose of maintaining a profit
able business we may well facilitate a
change by them in the method Of do
ing business, and enable them to bring 1t
back into the zone of lawfulness without
losing to the country the economy of
management by which,, In our domestic
materially lessened, and in competition
with foreign manufacturers our foreign
trade has been greatly increased.
Asks National Corporation Law.
II therefore recommend the enactment
by congress Of general law providing
for the formation of corporations to en-
gage in trade and commerce among the
states and with foreign nations, protect
ing them from undue interference by the
states and regulating their activities so
as to prevent the recurrence, under ma
tional auspices, of those abuses which
have arisen under state control such
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 II the stock be issued for property,
then at a fair valuation ascertained un-
der approval and supervision of federal
authority after full and complete dis
closure Of all the facts pertaining to the
value of such property and the interest
therein of the persons to whom II is
proposed to issue stock in payment Of
such property. 1t should subject the real
and personal property only of such cor
porations to the same taxation as i'm
posed by the states within which it may
be situated upon other similar property
located therein, and II should require
such corporations to file full and com.
department of commerce and labor. at
regular intervals Corporations organized
under this act should be prohibited from
acquiring and holding stock in other cor
porations Except for special reasons upon
approval by the proper federal author
ity), thus avoiding. the creation, under
, with subordinate corporations in different
states which has been such an effective
agency in the creation Of the great trusts
and monopolies.
State Laws Conflict.
'Tf the prohibition of the antitrust act
against combinations in restraint Of trade
is to be effectively enforced it is essen
tial that the national government shall
provide for the creation Of national cor
porations to carry on legitimate bust
ness throughout the United States. The
cOntiCtlng laws OF the dlnerent states OF
the union with respect to foreign corpora
tons make 1t difficult, II not impossible,
for one corporation to comply with their
requirements so as to carry on business
in number of different states.
ITO the suggestion that this proposal of
federal incorporation for industrial com
binations Is intended to furnish them
refuge in which to continue industrial
business under federal protection. 1t
plated does not repeal the Sherman anti
trust 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,
vance of the highest industrial efficiency
without permitting industrial abuses.
such national Incorporation law will
be opposed, first, by those who believe
| that trusts should be completely broken
| up and their property destroyed. 1t will
be opposed, second, by. those who doubt
| corporation and even II it is valid, object
| to 1t as too great federal Capitalization
| 1t will be opposed third, by those who
| will insist that a mere voluntary incor-
| poration like this will not attract to it's
| assistance 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 feder-
| al corporations engaged in interstate
LET us consider these objections in
| their order The government is now try
! Ing to dissolve some, of these combina-
lions and 1t is not the intention of the
| government to desist in the least degree
| in it's effort to end these combinations
| which are to-day monopolizing the COM
merce of this country; that where It ap-
pears that the acquisition and concen-
| tration of property go to the extent of
creating a monopoly of substantially and
| directly restraining interstate commerce.
| II 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 gov
ernmen OF a state corporation now vio-
! lating the Sherman act. But 1t is not
and gbOn1d 70 tho DOlipu Of ha
| eminent to prevent reasonable concen-
| tration of capital which is necessary to
| the economic development of manufac-
| ture, trade and commerce.
May Doubt ConstltutionaIity.
"Second-There are those who doubt the
| constitutionality Of such federal incorpor-
alton. The regulation of interstate and
| foreign commerce is certainly conferred
| in the fullest measure upon congress, and
II for the purpose of securing in the most
| thorough manner that kind of regulation
| congress shall insist that 1t may provide
| and authorize agencies to carry on that
| commerce, ii would seem to be within it's
| power this has been distinctly affirmed
with respect to railroad companies doing
| an interstate business and interstate
| bridges. The power of incorporation has
| been exercised 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 countries, may the, same power
| fact that they carry on interstate COM
merce that makes these great Industrial
| concerns subject to federal prosecution
| and control How far as incidental TO
| the carrying on Of that commerce it may
| be within the power of the federal gov
| eminent to authorize the manufacturer of
| goods, is perhaps more open TO discus
| sion, though recent decision OF the SUI
| preme court would seem to answer that
| question in the affirmative.
| The third objection, that the worst Of
| tenders will not accept federal incorpora-
| ton, is easily answered. The DEGREES OF
| Injunction recently adopted in prosecu-