Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1911-12-05


its task by prosecuting single INSIDE
meanors instead OF an entire conspir-
acy, and. on the other hand. 10 serve
the purpose Of pointing out more IN
detail 10 the business community what
must be avoided.
Federal incorporation Recommended.
In special message tn congress
on January Z. 1910. ! venturod to point
out the disturbance TO business that
would probably attend the dissolution
OF these offending trusts. | said;
But such 40 Investigation and pos
sible prosecution OF corporations
whose prosperity or destruction af.
fects the comfort not only OF stock
holders hut OF millions OF wage earn
ers. employees. and associated trades
men must necessarily tend 10 disturb
the confidence ~ the business com
munity, 10 dry np the now flowing
sources OF capital from its places OF
boarding. and produce halt IN our
present prosperity that will cause sui
fering and strained circumstances
among the innocent many Tor the
faults OF the guilty few. Tho question
which ! wish In this message TO bring
clearly to the consideration and dis
cussion Of congress IL whether, Ia or
der To avoid such n possible business
danger. something can not be done by
which these business combinations
mas be- offered means. without great
financial disturbance, Of changing the
character, organization, and extent OF
their business into one within the
lines 81 the law under federal control
and supervision, securing compliance
with the antitrust statute.
Generally, In the Industrial com
binations called trusts, the principal
business Ia the sale of goods In many
states and In foreign markets; IN
other words, the Interstate and for.
eiga business far exceeds the business
done In any one state. This fact Will
Justify the federal government In
granting a federal charter 10 such a
combination TO make and sell in inter
state and foreign commerce the prod
ucts OF useful manufacture under such
q combination TO make and sell In IN
terstate and foreign commerce the
products OF useful manufacture under
such Limitations as will secure n com.
pliance with the antitrust law. II 10
possible 80 20 frame a statute that
while II Offers protection 10 n federal
company against harmful, vexatious,
and unnecessary invasion by the
states. Il shall subject II 10 reason
able taxation and control by the
states with respect TO It's purely local
bushes.
Corporations organized under this
act should be prohibited from ncquir-
ing and holding stock In other cOrprn-
ls.I
approval By the proper federal author
n.y.. thus avoiding the creation under
national auspices Of the holding COM
pany with subordinate corporations la
different states, which has been such
an effective agency In the creation
OF the great trusts and monopolies.
"lf the prohibitions OF the anti
trust act against combinations In re-
Etraint of trade lis TO be effectively
enforced, II IL essential that the ma
tlonai government shall provide for
the creation OF national corporations
to carry on legitimate business
throughout the United states The
conflicting laws OF the different states
of the union with respeci 10 foreign
corporations make II difficult. II nor
impossible. for one cofnOrafi0n, 10
comply with taeir requirements 40 a.
OF carry ON business In number oil
different states"
renew the RECOMMENDATION Of the
ennc tment OF n general law providing
tor the voluntary formation OF cor
poraticns to engage In trade and com.
merce among the stases ana with for
eign nations Every argument which
was then advanced Tor such law, and
every explanation which was at that
time offered to possible objections,
have been confirmed by our expert
cnce since the enforcement OF the
antitrust statute has resulted In the
actual dissolution of active conner
cial organizations.
II 10 even moro manifest now than
Il was then that the denunciation or
cOnsplracles In restraint OF trade
should not aud does not mean the
denial OF organizations large enough
10 be intrusted with our Interstate and
foreign trade. II has been made more
clear now than II 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
tional and foreign commerce.
Government Administrative Experts
Needed 10 Aid Courts IN Trust
oirsolutions.
The drafting OF the DEGREES in the
dissolution OF the present trusts, with
view to their reorganization into
Legitimate corporations. has made II
especially apparent that the courts are
not provided with the administrative
machinery TO make the necessary In
Qnlries preparatory 10 reorganization
OF 10 pursue such Inquiries. and they
should be empowered 20 invoke the
aid al the bureau of corporations IN
determining the suitable reorganixa'
ton OF the disintegrated parts. The
circuit court and the attorney general
we're greatly aided In framing the
decee In the Tobacco tnat dissolution
by an expert IRON the bureau OF cor
pOrati0ns.
Federal Cooperation Commission Pro.
posed.
do not set forth In detail the
terms and sections of a statute. which
nigh, supply the constructive legisla-
ton permitting and aiding the lorna
ton OF combinations OF capital intc
federal corporations. They should be
Subject to rigid rules as TO their or
lganixatiOn and procedure, including