Rocky Ford enterprise., 1910-01-14

such corporations to file fun ana corr
plete reports OF their operations with the
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 auth@-
ity). thus avoiding the creation under
national auspices. of the holding COM
pany with subordinate corporations In
different states which has been such an
effective agency in the creation OF Inc
great trusts and monopolles.
II the prohibition of the antitrust act
against combinations in restraint OF
trade is to he effectively enforced. II II
essential that the national governinehs
shall provide for the creation of national
corporations to carry on legitimate
business throughout the United States.
The conflicting laws of the dinerent
states of the union with respect to for-
cign corporations make 1t difficult. II hoe
impossible. for one corporation to comply
with their requirements so as TO carry
on business in a number OF different
states.
To the suggestion that this proposal OF
federal incorporation for Industrial COM
binations IL intended to furnish them
refuge in which to continue Industrial
business under federal protection. ~
should be said that the measure contem-
plated does not repeal the Sherman anu
trust law and is not to be framed so az
to permit the doing of the wrongs whicn
It Is the purpose of that law to prevent
but only to foster n continuance anu n
vance of the highest Industrial ehciencJ
without permitting Industrial abuses
Sure to Meet Opposition.
Such n national Incorporation law VIII
be opposed. first. by those who behess
that trusts should be completely bfoken
up and their property destroyed. IL WIN
be opposed, second. by those who doubs
the constitutionnilty of such federai IN
corporation and even II It Is vahu. ouJee'
to It too great federal centraiizhton-
II will be opposed. third. by those "ho
will insist that a mere voluntary iheor.
poratIon like this will not attract 10 is
assistance the worst OF ih' oleh".'s
against the antitrust statute ana Wns
will therefore propose Instead OF u a Ss
TEN of compulsory licenses Tor All ieu-
eral corporations engaged In ih'ers'A's
business
Let us consider these objections In then
order. The government u now uSl"s
dissolve some of these combinations aha
IL Is not the Intention of the government
to dcsist In the least degree In IT'S eHo1'
to end these combinations which are To-
day monopolizing the commerce OF ,n's
country; that where II appears thht uns
acouisitIon and concentration OF property
go to the extent of creating monopov
of substantially and directly restraining
Interstate commerce. II Is not IN" '"'rn-
%
mouopoIy to exist under federal incof-
poration or to transfer to the protecting
wing Of the federal government OF
state corporation now violating the Shef
man act. But II Is not. and should MOI
be- the policy Of the government to pre-
vent reasonable concentration OF cnpitai
which In necessary to the economic dcsei-
opmcnt of manufacture. trade ana com
merc- This country has shown power
of economic production that has aston
ished the world. and has enabled us 70
compete with foreign manufacturers u
many markets. II should be the care os
III. government to permit such concrn-
| tratiop of capital while keeping op"n the
| avenues of Individual enterprise. and the
opportunity for man or corporauoH
| with Reasonable capital to engage II
business II we would maintain ous
| present business supremacy. we should
| give to Industrial concerns an oppor.
| tunity to organic. or to concentrate then
| legitimate capital In federal corpora
| ton. and to carry on their large business
| within the lines OF the law
May Doubt constitutionaIIty. :.
second-There are those who doubt ths
eonstltutionailty Of such federal fncorpor-
| alton. The regulation of Interstate and
foreign commerce II 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 Il may provide
and authorize agencies to carry on that
commerce. Il would seem to be within Its
power this has been distinctly affirmed
with respect to railroad companies 'iolna
an Interstate business and Interstate
bridges. The power of Incorporation hss
been exercised by congress and upheld
by the supreme court In this regard.
why, then. with respect to any othes
form of interstnt. commerce like the sale
Of goods across state boundaries and Ints
foreign countries. may the same power
not b. hsserted7 Indeed. II IL tho v-r1
fact that they carry on Interstate com
mcrcr that makes these great Industrial
concerns subject to federal pros.cutlor
and control How far as Incidental to
tho carrying on Of that commerce. II may
be within the power Of the federal gov
ernrncnt to authoriz. tn. manufacturer OF
goods. II perhaps more open to discus
sion. though a recent decision Of the
preme court would seem to answer thas
question In the affirmative.
Even those who are willing TO conceds
that the supreme court may sustain such
federal Incorporation are inclined to op-
pose II on the ground Of Its tendency to
the enlargement of the federal power ai
the expense Of the power Of the state.
II is n sufficient answer to this argument
to say that other method can he -ur-
gested which offers federal protection OF
the one hand and close federal sup-rvt.
sion on the other Of these great orgnni-
nations that are In fact federal because
they are ms wide the country and ars
entirely unlimited In their business By
state lines. Nor IL the Capitalization Of
federal power under this act likely to b
excessive. Only the largest corporations
would avail themselves Of such n law bo-
cause the burden Of complete federal su-
pervi.ion and control that must certainly
be imposed to accomplish the purpose of
the Incorporation would not be accepted
by an ordinary business concern. The
third objection. that the worst oNenders
will not accept federal Incorporation. 10
easily answered. The DEGREES OF iniunc-
ton recently adopted In prosecutions un.
der the antitrust law are 40 thorough
and sweeping that tho corporations af.
fected ~ them have but three courses