The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-12-06

pose. 20 suppress competitor by un-
dersclling him at "A price so unprOfit-
able az 10 drive him out OF business.
or the making Of exclusive contracts
with customers under which they are
required TO give up associate with
other manufacturer and numerous
kindred methods or sitting compe liz
tiOn and enecting monopoly should be
described with sufficient accuracy in a
criminal statute on the one. hand TO
enable the government TO shorter its
TASK by prosecuting single misdemean-
ors instead OF an entire conspiracy.
and, on the other hand to serve the
purpose OF pointing out more in detail
10 the business community what must
be avoided.
Federal incorporation Recommended
In special message TO congress on
Jan 7. 1910, ventured 20 point out the
probably attend the dissolution of
these OFFENDING trusts. j raid
But such an Investigation and pos
sible prosecution Of corporations whose
prosperity or destruction Affects the
comfort not only Of stockholders. but
or millions OF wage earners, employees
ana associated tradesmen must neces-
sarily tend TO disturb the confidence OF
the business community, To dry up the
now flowing sources OF capital from it's
places OF boarding. and produce "A halt
In our present prosperity that Will
cause suffering and strained circum-
the faults OF the guilty few. The ques-
tioT which ] wish In this message TO
bring clearly 10 the consideration and
discussion or congress is whether, in
order TO avoid such possible busi-
ness danger, something can not os
done by which these business combina-
lions may be offered "A means, without
great financial disturbance. OF chang
ing the character, organization, and
extent Of their business into one with
In the lines OF the law under federal
control and supervision securing COM
pliance with the antitrust statute.
Generally. In the Industrial combi-
nations called trusts the principal
business Is the sale OF goods in many
states and in foreign markets; in other
words, the interstate and foreign bust
ness far exceeds the business done In
any one state. This fact will Justify
the federal government In granting a
federal charter TO such a combination
to make and sell in interstate and for
manufacture under such limitations as
viii secure a compliance with the anti
trust law 1t is possible so TO frame
a statute that while IL offers protect
harmful, vexatious, and unnecessary
invasion by the states, il shall subject
IL TO reasonable taxation and control
by the states with respect 10 it's pure
Corporations organized under this
act should be prohibited from acquir-
Ing and holding stock in other cor
porations Except for special reasons,
upon approval by the proper federal
authority, thus avoiding the creation
under national auspices OF the holding
company with subordinate corpora
ticns in different states. which has
been such an effective agency in the
creation of the great trusts and mon
opolies.
III the prohibition of the antitrust
act against combinations in restraint
q hp RnfOFcQd
1t is essential that the national gov
eminent shall provide for the Gre
alton OF national corporations to carry
on a legitimate business throughout
the United States. The conflicting
laws OF the different states OF the
union with respect to foreign corpora
ticns make IL difficult, II not possible,
for one corporation to comply with
their requirements so as TO carry on
business In number OF different
states"
I renew the recommendation OF the
enactment OF general law providing
for the voluntary formation of corpo-
rations to engage in trade and com
merce among the states and with for
eigr nations Every argument which
was then advanced for such "A
law, and every explanation which was
at that time offered to possible object
ions. have been confirmed by our ex-
perience since the enforcement OF the
antitrust statute has resulted In the
actual dissolution of active commercial
orgg nizations.
II is even more manifest now than II
was then that the denunciation OF con-
sp.racies in restraint OF trade should
not and does not mean the denial OF
organizations large enough to be In
trusted with our Interstate and foreign
trade. IL has been made more clear
now than 1t was then that a purely
negative statute like the, antitrust
Law may well be supplemented by spe-
cilc provisions for the building up and
regulation OF legitimate national and
fore ign conn ma ar.sa