El Paso herald. (El Paso, Tex.) 1901-1931, 1911-12-05

has resulted in the actual dissolution Of
active commercial organizations.
It is even more manifest now than II
was then that the denunciattOn OF con-
spiracieS IN restraint OF trade should
not and does not mean the denial Of or
CARNATIONS large enough to be intrust-
ed with our Interstate and foreign
trade. 1t has been made more clear
now than IT was then that a purely neg
alive statute like the anti trust law
provisions for the building up ana reg
ulatiOn Of legitimate national and FOR
eign commerce
Experts Needed to Aid Courts.
The drafting Of the DEGREES in the
dissolution of the present trusts, with
a view to their reorganization into le-
Ultimate corporations, has made II es-
pecially apparent that the courts are
not provided with the administrative
machinery to make the necessary ingul-
ries prepare tory to reorganization, or 70
pursue such inquiries, and they should
be empowered TO invoke the aid OF the
bureau OF corporations in determining
the suitable reorganization Of the dis
integrated parts. RThe circuit court ana
the attorney general were greatly aid
ed IN framing the decree in the Tobacco
trust dissolution by an expert from the
bureau OF corporations
Federal Corporation Commission.
I do not set forth in detail the terms
and sections Of a statute which might
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 pup
licity, and to the closest supervision
as to the issue OF stocks and bonds
by an executive bureau or commission
in the department Of commerce ana Ia
Dor, TO which in times or DOUBT Ihey
might well submit their proposed plans
for future business It must be DIS
tinctly understood that Incorporation
under a federal law could not exempt
the company thus formed ana us IN
cOrporatOrs and managers from prose-
cutiOn under the anti trust law Tor SUD
se0uent illegal conduct, nut the puDllc-
ity OF its procedure and the opportunity
for frequent consultation win the ne Pu-
reau OF commission in charge OF the IN
corporation as to the legitimate pur-
pose Of its transactions would oILer
Ii as great security against SucceSs1ul
prosecutions for Violations OF the ID"
as would be practical or wise
Such a bureau or commission might
well be invested also with the duty al
ready referred to, of aiding courts IN
the dissolution and recfeation OF trusts ISIS
within the law It should be an eNz
ecutive tribunal Of the dignity ana
power Of the controller Of the curren-
cy of the interstate commerce commls-
sion which now exercise 81 ~ 1850 So
power over important classes or corpor-
ations under federal regulation
The drafting of such a federal 1ncor-
poration law would offer ample oppor-
tunity to prevent many manlLest eVlls
in corporate management today, IN
GLIDING responsibility of control IN
the hands OF the few who are not the
real owners
Incorporation Voluntary.
I recommend that the federal charters
thus to be granted shall be voluntary,
at least until experience justifles man
datory provisions. The benefit to be
derived from the operation OF great
business under the protection OF such
a charter would attract all who are
anxious to keep within the Zines OF the
law. Other large combinations that 1all
to take advantage OF the Iederal moor
poration will not have right 10 com
plain if their failure is ascribed TO
unWillfngness to submit their tranSac-
lions to the careful official scrutiny,
competent supervision and publicity at
tendant upon the enjoyment OF sucn
charter
Only Supplemented Legislation Needed.
The opportunity thus suggested FOR
federal Incorporation, it seems to ms,
is suitable constructive NeglslaIlon
needed to facilitate the squaring OF
great Industrial enterprises to the rule
of action laid down by the anti trust
law. This statute as construed by the
supreme court must continue to be the
line of distinction for legitimate bust
ness. 1t must be enforced, unless we
are to Danish individualism from all
business and reduce il to one common
system of regulation or control OF
prices like that which now prevails
with respect to publie utilities, and
which when applied to all business
would be long step toward state So
cialism-
Importance Of the Anti Trust Act.
The anti trust act is the expression
of the effort of a freedom loving peO-
pie to preserve equality of opportunity.
1t is the result of the confident deter
mination OF such a people to maintain