Fort Mill times. [volume] (Fort Mill, S.C.) 1892-current, 1911-12-07


20 give up association with other manu-
facturers. and numerous kindred mstnoos
for sitting competition and enscting mo-
nopoIy, should be described with sufncisnf
accuracy in q criminal statute on the one
hand 20 enable the government TO snort
en- its task by prosecuting single misoo-
meanors instead OF an entire conspirecy'
and. on the other hand. to serve the pus-
pose Of pointing out moro In detail 20 tne
businerl community what must %
avoided.
Federal incorporation Rscommenaeo'
In a special message TO congress on
January Z, 1910. ventured to point OUT
the disturbances to business that would
probably. attend the dissolution OF
these offending trusts. ! saic:
but such an investigation and pos
sible prosecution OF corporations wnoss
prosperity or destruction affects the
comfort not only OF stockholders but o.
millions Of wpgs earners. employees.
and associated tradesmsn must Deces-
sarily tend TO disturb the confidence OF
the business community. 10 dry up the
now Moving sources OF capital from its
places OF hosrding. and produce halt
in cur present prosperity that VIII
cause suffering and strained circum-
stances among the innocent many fcr
the fault Of the guilty few. The ques-
tion which / wish In this message 70
bring clearly to the consideration ana
discussion Of congress ID whether. IN
order to avoid such q possible business
dauger. something cannot be done oy
which these business combinations may
be offered q means. without great hnan-
cial disturbance. Of changing the char
acter, organization snd extent OF their
business into one within the lines OF
the law under federal control and su-
pervision. securing compliance With the
antitrust statute.
.Generaily. In tho Industrial combi-
nations called Trusts. the principal
business Is the sale OF goods In many
,,tates and in foreign markets: In other
words. the Interstate and foreign busis
ness far exc beds the business done In
ilny one stste. This fact will justify
The federal government in granting
federal charter to such combination
10 make and sell In inserssate and for.
,sign commerce the products OF usefut
under such limitations az
will secure a compliance with the anti
trust law II is possible 50 TO frame
{. statute that while II Offers protec-
tion TO a federal company against
harmful. vexatious and unnecessary
Invasion by the states. II shall sub5ece
N TO reasonable taxat ton and control
ty the states with respect to Its pure
ly local business.
Corporations organised under this
act should be prohibited from acquir-
lag and holding stock in other corpora
lions (except for special reasons. upon
, pproval By the proper federal author
Ii:y). thus avoiding the creation under
national auspices OF the holding COM
pany with subordinate corporations In
different states which has been such an
elective agency in the creation OF the
great trusts aud monopolies.
"If the prohibition of the antitrust
act against combinations In restraint
OF trade Is to be effectively enforced.
\ ,s essential that the national govern
nlent shall provide for the creation or
national corporations to carry on
legitimate business throughout the
United States The conflicting laws or
the different states OF the Union with
respect to foreign corporations makes
Il diBcult IL not impossible. for one
to comply with their re-
uuirements so as to carry on business
III a number OF different states"
F,.deral Corporation Commission Pro-
posed.
4 do not set forth In detail the terms
lf.S sections or statute which might
~ POI, the constructive legislation permit
iiig and. ting the formation OF com bina-
ions Of capa, into federal corporations.
they should be- .-ab1ect to rigid rules an
q their organixati. and procedure. In
.liiding effective pub. Sty. and to the
losest supervision as B. the Issue OF
Iti,ck and bonds by an exc utive bureau
,r commission In the DEP rtment OF
o onmerce and labor to which times OF
loubt they might well submit Neir pro-
70 yed plans for future business, II must
u distinctly understood that In rpora-
ion under federal law could Vt ex-
m pt the company thus formed its
and managers from rose
u,ion under the antitrust law for sub
euuent Illegal conduct. but the pub city
Z its procedure and the opportunit. for
reouent consultation as to the legiti ate
purpose OF its transactions would Ter
/ as great security against succes fui
for violations OF the aw
IS would be practical or wise.
Such a bureau or commission might
veil be invested also with the duty al
eady referred to. Of aiding the courts
n the dissolution and recreation OF trusts
rithin the law. 1t should be an execu-
i've tribunal OF the dignity and power OF
he comptroller of tho currency or the
Interstate commerce commission. which
10. exercise supervisory power over Inn
Dol -tant classes OF corporations under fed
raj regulation.
The drafting OF such federal incorpor-
ltion law would offer anaple opportunity
o prevent many manifest evils In corpor-
tie management today. including srre-
OF control In the handn OF
he few who are not the real owners
Ineorpoc alton Voluntary.
I recommend that the federal charters
hus TO be granted shall be voluntary, at
east until experience just!fies mandatory
provisions. The benefit to be derived
rom the operation OF great businesses
lnder the protection OF such a charter
would attract all who are anxious 10 keep
within the lines OF the law. Other largo
that fail TO take advantage
u the federal incorporation will not have
, tight TO complain II their failure Is
,scribed to pnwillingness to submit
heir transactions to the careful scrutiny.
competent supervision and publicity at
endant upon the enjoyment OF such o
harter.
supplemental Legislation Needed.
Tho opportunity thus suggested for fed
ral incorporation. II seems to me, II cult.
biz, constructive iegislation needed to IA
iliiate the squaring OF great industrial
ntsrprises TO the rule Of action laid down
" the antitrust law. This statute an
onItrued by the Supreme court must
oniinue to be the line OF distinction for
.gi.imate business. 1t must be enforced.
Mess we are 70 Danish individuaGsm from
II business and reduce II 70 one common
ystem OF regulation o! control OF prices
Ike that which now prevails with respect
o public utilities. and which when ap-
lied 10 all business would o. long stop
oward state socialism.
WN. II. TAFT.
At the Football Game.