The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1910-01-15
able or can be introduced into the stat

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 We're denounced in this act
not because of their intrinsic immoral
ity but because of the dangerous re-
suits toward which they tended, the con-
hands OF the few, IeadlnS 10 oPPres-
sion and injustice. In dealing, therefore,
the the methods condemned by the statute
for the purpose OF maintaining a proht-
change by them in the method OF 90
ing business, and enable them to bring 1t
back into the zone of lawfuIness, without
losing to the country the economy or
management by which, in our domestic
trade the cost of production has been
materially lessened, and in competition
with foreign manufacturers our foreign
trade has been greatly increased
Asks National Corporation Law.
Il therefore recommend the enactment
by congress Of a general law providing
gage in trade and commerce among the
states and with foreign nations, protect
ing them from undue interference by the
states and regulating their acuVit1es so
to prevent the recurrence, under ma
have arisen under state control Such
law should provide for the issue OF stock
of such corporatiOnas 10 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 un,
der approval and supervision OF federal
authority after a 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 it 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
located therein, and it should require
such corporations to file full and com
department of commerce. and labor at
regular intervals. Corporations organized
acquiring and holding stock in other cor
poratiOnS Except for special reasons upon
approval by the. proper federal author
ty), thus avoiding the creation, under
national auspices, of the holding company
with subordinate corporations in different
states which has been such an ehectlve
agency in the creation of the great trusts
and monOpolies-
State Laws Conflict.
eff 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 a legitimate bust
ness throughout the United States. The
| conflicting laws of the different states of
the union with respect to foreign corpora
lions make it difficult, if not impossible,
| for one corporation to comply with their
requirements so as to carry on business
in a number of different states.
ITO the suggestion that this proposal of
federal incorporation for industrial COM
| binations is intended to furnish them a
refuge in which to continue industrial
| should be said that the measure contem-
| plated does not repeal the Sherman anti
| to permit the doing of the wrongs which
| 1t 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
up and their property destroyed. 1t will
| be opposed, second, by those who doubt
| corporation and even If it is valid, object
| to it 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 its
against the antitrust statute and who
| will therefore propose instead of it a Sys
| tenn of compulsory licenses for all feder
| business.
Let US consider these objections in
| their order The government is now try
! ing to dissolve some of these combina-
| lions and it is not the intention of the
| in It's effort to end these combinations
| which are to-day monopoliZing the COM
| merce of this country; that where it APP
pears that the acquisition and cOncen-
| tration of property go to the extent of
creating monopoly of substantially and
it is not the intention of the government
| to permit this monopoly to exist under
federal incorporation to transfer to
the protecting wing of the federal gov
ernmen of a state corporation now VIC
lating the, sherman act But it is not.
and should not be, the policy of the gov
eminent to prevent reasonable concen-
tration of capital which is necessary to
| the economic development of manufac-
| ture, trade and commerce.
May Doubt ConstitutionaIity.
"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
| if for the purpose of securing in the most
| congress shall insist that it may provide
| and authorize agencies to carry on that
| commerce, it would seem to be within its
| power this has been distinctly affirmed
! with respect to railroad companies doing
! an lnterS 5I{ business ana 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
| not be asserted? Indeed it is the very
| fact that they carry on interstate com
concerns subject to federal prosecution
| and control How far incidental to
| the carving on of that commerce it NAV
| be within the power of the federal gov
| eminent to authorize the manufacturer of
| goods, is perhaps more open to discus
| sion, though a 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
|
tons under the antitrust law are so
| thorough and sweeping that the corpora
! lions affected by them have but three
I courses before them:
First, they must resolve themselves
| into their component parts in the differ
| ent states, with a 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-
| tinue their business in violation of the
| federal statute and thus incur the pen
alties of contempt and bring on an in
| evitable criminal prosecution of the indi-
| vfduals named in the decree and their as
| sociates; or
Third, they. must reorganize and ac-
! cept in good faith the federal charter I
| suggest a federal compulsory license law
| urged a substitute for federal fncor-
| poration law, is unnecessary except to
| reach that kind of corporation which BY
| virtue of the considerations already adj
vanced. will take advantage voluntarily
| of an incorporation law, while the other
| state corporations doing an interstate
| business do not need the supervision or
| the regulation of federal license and
A would only be unnecessarily burdened
1 thereby"
| Truth as Drisonar - AA..