The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1910-01-12
able or can be introduced into tho stat"

forget that that law makes unlawful.
methods of carrying on business wln .1,;.
dence of business sagacity and success.
and that they were denounced In this act
not because Of their INT intrinsic dsneerns Ie-
suits toward which they tended, the con- on
centration Of industrial , Rower IN nnnr the
hands Of the few ie asa1g. 70 }he GpS
the the" methods condemned by. the statute
for the purpose OF main ta'i 4gacai,fate
change by them in the method Of do.
Ing business, and enable them to bring II
back into the zone cnn 81 tbe Of
management by which, in our domestic
trade the cost Of production mas .+; neen
Wth forsien e'S manufacturers our foreign
trade has been greatly Increased.
Asks National Corporation Law.
II therefore recommend the enactment
f 1y t the Formation 81 Corporations to en:
States q and with foreign nations, protect
| ing them from undue interference hy the
| states and regulating their activities 10
tional auspices, Of those abuses which
| have arisen under state control such e
| law should provide for the issue OF stock
| only to the cash paid in on the stock;
and IL the stock be issued for property
| then at fair valuation aScertalneu un,
authority after. a full and complete dis Dis.
closure Of all the facts pertaining to the
value of such property and the interest," y
| therein of the persons to whom IT ls
proposed to issue stock in payment OF
such property. It should subject the real
property only Fl nuc as
posed by the states within which it may
be situated upon other similar. property
such CONSIDERATIONS i to file fun and com
plete reports of their operations with tho
department of commerce . and labor or, az az
under this act should be prohibited from
acquiring and holding stock in other cor
porations Except for special reasons upon
ity), thus avoiding the creation, under
national auspices, of the holding company
with subordinate corporations IN diner te1t
states which has been such an enectlVe
agency in the creation Of the great trusts
and monopolies.
State Laws Conflict.
''If the prohibition of the antitrust act
against combinations in restraint OF trade
is to be effectively enforced 1t Is essen
provide for the creation OF national cor
porations to carry on legitimate o Msas
conflicting laws of the different states Of
the union with respect to foreign corpora
tons make it difficult, If not Impossible y,
in ma number Of different states.
ITO the suggestion that this proposal a o,
binations is intended to furnish them
refuge in which to continue lndustrla
business under federal protection: II
should be said that the measure contem
plated does not repeal the Sherman anti
trust law and is not to be framed So =;
to permit the doing Of the wrongs which
but only to foster a continuance and ad
vance Of the highest industrial eff1cienc,
without permitting industrial abuses.
"such a national Incorporation law vii
that trusts trusts should be completely broke,
up and their property destroyed; 1t WI
be opposed, second by those Wno doup
Corporation and even if it is valid, ob1ec
to it as too great federal Capitalization
It will be opposed. third. by those w, Wh
; poration like this will not attract to- 1t
, Assistance the worst Of the offender
: against the antitrust statute and w i
} | will therefore propose instead OF 1t sys
tenn of compulsory licenses for all feder
al corporations engaged in interstat
business. ..
= their order The government is now try
; ing to dissolve some, of these combin "a
g Cove me t to desist in the least degre
t in it's effort to end these combination
which are to-day monopolizing the con-
i tration of property go to. the extent {
: creating a monopoly OF substantially an
s it is not the intention of the governmer
t to permit this monopoly to exist undo
federal incorporation or to e transfer r.,
t ernmen of a state corporation now VII
t lating the Sherman act. But it is no
: and should not be- the policy OF the GO,
e the economic development Of manufa'
d ture, trade and commerce.
= May Doubt ConstitutionaIity.
s "second-There are those who doubt IL
a cons.itutionality of such federal incorpo
) alton. The regulation of interstate ar
+ foreign commerce is certainly conferre
y in the fullest measure upon congress, al
{, if for the purpose of securing in the mo
y thorough manner that kind of regulatio
= congress shall insist that it may prov,it
y and authorize agencies to carry on tn
n commerce, it would seem to be within i
= power this has been distinctly afiirmt
II with respect to railroad companies dol1
IS an interstate business and intersta
bridges The power OF incorporation ,nb nj
- by the, supreme court In this regar
f. Why, then, with respect to any 9th
re of goods across state boundaries and in
1 NOT 6e a s Indeed, it is the We
merce that makes these great industri
l. concerns subject to federal prosecute
l. | and control. How far as incidental
- the carrying on of that commerce it m'
s. be within the power Of the federal go
,r | eminent to authorize the manufacturer
le goods, is perhaps more open to discu
l. sion though a recent decision of the 9
al | preme court would seem to answer tn
"a | question in the affirmative
NJ 1.-THE third objection, that the worst {
c. tenders will not accept federal incorpor
e. ton. is easily answered. The DEGREES
st injunction recently adopted in prosec
tie | tons under the antitrust law are
d. thorough and sweeping that the corpor
as tons affected by them have but thr
-. courses before them:
On "First, they must resolve themselv
to into their component parts in the diff
ent states, with a consequent loss
VI themselves of capital and effective orga
e. ization and to the country of conce
ne trated energy and enterprise; or secol
nd in defiance of the law and under sol
by secret trust they must attempt to &C
Ike tinuc their business in violation of
a federal statute, and thus incur the pc
p alties of contempt and bring on an
do evitable criminal prosecution of the in
Sc viduals named in the decree and their
ut sociates; or
to "rhird, they must reorganize and
vn cept in good faith the federal charte,
FoIl