Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-12-07
ton Of the great trusts and monopo-

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 |
II Is essential that the national govern.
ment shall provide for the creation Of
national corporations to carry on a le-
climate 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, II not impossible, for one cor
poration to comply with their require
ments 80 as to carry on business in a
number of different states"
renew the recommendation Of the
enactment Of general law providing
for the voluntary formation Of cor
porations to angage in trade and COM
merce among the states and with for
eign nations. Every argument which
was then advanced for such a 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.
1t is even more manifest now than
it was then that the denunciation Of
conspracies 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 a
purely negative statute like the anti
trust law may well be supplemented
by specific provisions for the building
up and regulation of legitimate ma
tlonal and foreign commerce.
Government Administrative Experts
Needed to Aid Courts In Trust
DissoIutions.
The drafting of the DEGREES in the
dissolution Of the present trusts. with
! a view to their reorganization into le-
ultimate corporations. has made 1t es-
pecially apparent that the courts are
not provided with the administrative
machinery to make the necessary in
! Quires preparatory to reorganization
Or to pursue such inquiries, and they
should be empowered to invoke the
mid Of the bureau Of corporations in
determining the suitab BILE reorganiza-
ton Of the dislntegrated 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.
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
lefty. and to the closest supervision as
to the issue Of stock and bonds by an
executive bureau or commission in the
department Of commerce and labor. to
which in times Of doubt they might
well submit their proposed plans for
future business. It must be distinctly
understood that incorporation under q
federal law could not exempt the COM
pany thus formed and its incorpOrators
and managers from prosecution under
the antitrust law for subsequent H.
legal conduct. but the publicity of its
procedure and the opportunity for fire.
quent consultation with the bureau or
commission in charge Of the incorpora
ton rs 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 ar
executive tribunal Of the dignity anG
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 OPP
portunity to prevent many NANTES
evils In corporate management today
including responsibility of control il
the hands of the few who are not tn
real owners.
incorporation Voluntary.
recommend that the federal char
tiers thus to be granted shall be volun
tary. at least until experience justiie
mandatory provisions. The benefit t
be derived from the operation of grea
businesses under the protection Of sue
n charter would attract all who ar
anxious to keep within the lines Of TIN
law. Other large combinations tina
fail to take advantage of the fedora
incorporation will not have right T.
complain II their failure is ascribed L
unwillingness to submit their transac
tons to the careful official scrutiny
competent supervision and publicit
attendant upon the enjoyment OF sue
IA charter.
Only Supplemental Legislation Needed
The opportunity thus suggested TO
federal incorporation. 1t seems to me
is suitable constructive leGislatio
needed to facilitate the sQuarinG @
great industrial enterprises to the rnl
OF action laid down by the anti-truS
law. This statute as construed by IN