The Springfield herald., 1910-01-14
able or can be introduced Into the stat


before its passage We're Regarded as wi
dence OF business sasaeity dha n shGsesst shis st
not because of their intrinsic immoral a.
ity. but because OF the dangerous re-
centration of Industrial power In the
hands Of the few. leading 10 opP}res
sion and injustice In dealing ha baws used
the methods condemned by the statute
for the purpose of maintaining q prom,
change by them In the method OF do.
ing business. and enable them TO brihs ~
losing to the country the economy OF
management by which, in our domestic
trade the cost of production has been i,e
materially. lessened. and in comPeution
with foreign manufacturers our foreign
trade has been greatly increased
Asks National Corporation Law.
"I therefore recommend the enactment
by congress of a general law providlns
gage in trade and commerce among .ne
states and with foreign nations, protect
ing them from undue interference by tue
states and regulating their activities 80
as to prevent the recurrence. under ma
tionsl auspices. of those abuses which
have arisen under state control SUCH
law should provide for the issue of stock
OF such corporationas to an amount equal
only to the cash paid in on the stock
then at n fair valuation ascertained un,
der approval and supervision OF federal
closure Of all the facts pertaining to the
value of such property and the interest
therein Of the persons persons to aSm.n, whom II ~ ~
such property. 1t should subject the real
and personal property only OF such cor
posed by the states within which IT may
be situated upon other similar property
and ID hSnd fS and
plete reports of their operations with the
department of commerce and labor at
under this act should be prohibited from
acquiring and holding stock in other cor
poratons except S for special
ity), thus avoiding the creation. under
national auspices. of the holding company
with subordinate corporations In different
1 states which has been such an effective
| agency In the creation of the great trusts
and monopoles.
State Laws Conflict.
III the prohibition of the antitrust act
against combinations in restraint of trade
| is to be effectively enforced, 1t Is essen.
| tial that the national government shall
porations to carry on legitimate busi-
| ness throughout the United States. The
the union with respect to foreign corpora
| tions make II difficult. II not impossible.
for one corporation to comply with their
| in number of different states.
ITO the suggestion that this proposal OF
binetions iSnsti sis is Intended to to furnish them a
refuge in which to continue Industrial
| business under federal protection. 1t
| should be said that the measure contem-
| plated does not repeal the Sherman anti
| trust law and is not to be framed so as
to permit the doing 9t bat the law wr1nsS IN Sryen @e
| but only to foster continuance and ad-
vance OF the highest Industrial efficiency
| without permitting industrial abuses.
such a national incorporation law will
be opposed. first. by those who believe
that trusts should be completely broken
be opposed. second. by those who doubt
| the constitutionality of such federal in
corporation and even II It Is valid; i, object
1t will be opposed. third. by those who
will insist that mere voluntary incor-
assistance the worst of the Offenders
| against the antitrust statute and who
OF ali ii
| al corporations engaged In Interstate
business.
| their order. The government is now try
! ing to dissolve some of these combina-
tons and II is o,s not The intention Int as Of the
which are to-day monopolzing the COM
| pears that the acquisition and concen-
tration of property go to the extent OF
SIree,iy fea restraiDns intsTstate oommerce. r
1t is not the intention of the government
to permit this monopoly to exist under
the protecting wing of the federal gov
| ernmen of a state corporation now vio-
and should not be, the policy of the gov
ernment to prevent reasonable conccn-
tration of capital which Is necessary to
| the economic development OF manufac-
| ture. trade and commerce.
May Doubt constitutionality.
"Second-There are those who doubt the
constitutionality of such federal incorpor-
alton. The regulation of Interstate and
| 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, 1t would seem to be within Its
| 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
| of goods across state boundaries and into
| foreign countries, may the same power
not be asserted? Indeed, 1t is the very
| 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
ernment 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
| The third objection. that the worst Of
tenders will not accept federal incorpora.
| tion, is easily answered. The decrees of
| injunction recently adopted in prosccu-
| tons under the antitrust law are so
| thorough and sweeping that the corpora
| tons affected by them have but three
! courses before them:
First. they must resolve themselves
into their component parts in the differ
| ent states, with consequent loss to
! themselves of capital and effective organ
| ization and to the country of concen-
| trated energy and enterprise or second
| in defiance of the law and under some
| secret trust they must attempt to con-
| iinue their business in violation of the
| federal statute. and thus incur the pen
| alties of contempt and bring on an In
| evttable criminal prosecution of the indi-
| viduals named in the decree and their as
| sociates.
Third. they must reorEanize and ac-
| cept In good faith the federal charter I
| suggest n federal compulsory license law
| urged as n substitute for federal incor-
| poration law. is unnecessary except to
| reach that kind of corporation which. by
| virtue OF the considerations already ad-
| vanced, VIII take advantage voluntarily
| Of an incorporation law. while the other
state corporations doing Interstate
! business do not need the supervision or
| the regulation of federal license and
| would only be unnecessarily burdened
| thereby"
| Truth as Prisoner of War.
| Mncnulay cao1yc fr,,fb nDt n, .,br