The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1911-12-07

S5B
act should be prohibited from acqnir-
ing and holding stock IL other corpo-.
rations except for special reasons.
upon approval by the proper federlI
authority, thus avoiding the creation
under national auspices Of the holding
company with subordinate corporations
in different states. which has been
such an effective agency in the crea
ton Of the great trusts and monopo-.
lies.
If the prohibition Of the antitrust
act against combinations in restraint
Of trade is to be effectively enforced
it is essential that the national govern
ment shall provide for the creation Of.
national corporations to carry on a le
Ultimate business throughout the Unit
ed States. The conflicting laws Of the
different states of the Union with re
spect to foreign corporations make it
difficult. if not impossible, for one COR
poration to comply with their require
ments so as to carry on business in :;
number Of different states
renew the recommendation Of the
enactment of a general law providing
for the voluntary formation of cor
porations to engage in: trade and com
MERGE among the states and with for
eign nations. Every argument which
was then advanced for such law and
every explanation which was at that
time offered to possible objections has
been confirmed by our experience since
the enforcement of the antitrust stat
ute has resulted in the actual dissolu-
ton Of active commercial organiza
tons. 80.
It is even more manifest now than
it was then that the denunciation of
conspiraeies in restraint Of trade
should not and does not mean the de-
NAL Of organizations large enough to
be intrusted with our interstate and
foreign trade. 1t has been made more
clear now than it was then that
purely negative statute like the anti
trust law may we'll be supplemented
by specific provisions for the building
up and regulation of legitimate ma
tional and foreign commerce.
Government Administrative Experts
Needed to Aid Courts In Trust
Dissolutions.
The drafting Of the DEGREES in the
dissolution of the present trusts, with
a view to their reorganization into le-
ultimate corporations, has made it es-
pecially apparent that the courts are
not provided with the administrative
machinery to make the necessary in
quiries preparatory to reorganization
or to pursue such inquiries. and they
should be empowered to invoke the
aid of the bureau of corporations in
determining the suita bic reorganiza-
ton of the disintegrated parts. The
circuit court and the attorney general
were greatly aided in framing the de-
cree in the tobacco trust dissolution by
an expert from the bureau Of corpora
tons.
Federal Corporation Commission Pro-
posed.
l do not set forth in detail the terms
and sections of a statute which might
supply the constructive legislation per-
hitting and aiding the formation of
combinations Of capital into federal
corporations. They should be subject
to rigid rules as to their organization
and procedure, including effective pub
licity. and to the closest supervision as
to the issue of stock and bonds ky an
executive bureau or commission in the
department of commerce and labor, to
which in times Of doubt they might
we'll submit their proposed plans for
future business. 1t must be distinctly
understood that incorporation under
federal law could not exempt the COM
pany thus formed and it's incorporators
and managers from prosecution under
the antitrust law for subsequent H.
legal conduct. but the publicity of it's
procedure and the opportunity for fire.
quent consultation with the bureau or
commission in charge of the incorpora
ton as to the legitimate purpose of its
transactions would offer it as great Sc
curity against successful prosecutions
for violations of the law as would be
practical or wise.
Such bureau or commission might
we'll be invested also with the duty
already referred to Of aiding courts
in the dissolution and recreation Of
trusts within the law. 1t should be an
executive tribunal of the dignity and
power Of the comptroller of the cur
rency or the interstate commerce COM
mission, which now exercises supervis-
DRY power over important classes OF
corporations under federal regulation.
The drafting of such federal in
corporation law would offer ample op-