The Fargo forum and daily republican., 1911-12-05

kLAb uA@bAkxUnAsG8 " DUA0BAa AuM8 WB0AA
probably attend the dissolution ef these
offending trusts said:
''But such an Investigation and pos
sfble prosecution Of corporations whose
prosperity or destruction Affects the
comfort not only Of stockholders, but
Of millions OF wage eaEners, employees
and associated tradesmen, must neces-
sarily tend to disturb the confidence
Of the business community, to dry up
the now flowing sources OF capital
from its places OF boarding and pro-
duce q halt in our present prosperity
that wfll cause suffering and strained
circumstances among the innocent
many for the faults Of the guilty few.
The question which I wish in this
message 10 bring clearly 30 the con-
sideratiou and discussion Of congress
is whether. in order 20 avoid such q
possible business danger. something
cannot be done by which these bust
ness combinations may be offered a
means. without great financial dis
turbance. Of changing the character.
organization and extent Of their busi-
ness into one within the lines Of the
law under federal control and super
vision. securing compliance with the
antitrust statute.
Generally I'm the industrial ecmbina-
lions called trusts the principal busl-
ness L. the sale Of goods In many states
and in foreign mArlzets-in other words,
the interstate and foreign business far
exceeds the business done in any one
state. This fact viii justify the fed.
eral government IN granting federal
charter to such a combination to make
and sell IN interstate and foreign com.
merce the products of useful manufac.
ture under such limitation as will se-
cure compliance with the antitrust
law. It 10 possible so to frame q stat.
ute that while 1t offers protection to o
federal company against harmful. vex.
atious and unnecessary invasion by the
states. 1t shall subject it to reasona.
BILE taxation and control by the states
with respect % its purely local busi.
ness.
Corporations organized under this
act should be prohibited from acQuir-
Ing and holding stock in other eorpo-
rations except for special reasons,
upon approval by the proper federal
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.
don Of the great trusts and monopo-
lies.
IF the prohibition Of the antitrust
act against combinations In restraint
OF trade is 10 be effectively enforced
It Is essential that the national govern
ment shall provide for the creation of
national corporations to carry on a le-
gitimate business throughout the Unit.
ed Statea The conflicting laws Of the
different states Of the Union with re-
spect to foreign corporations make 1t
dificult, IL not impossible. for one cor
pOration 20 comply with their require
ments so as 10 carry on business in =
number OF different states"
I renew the recommendation Of the
enactment OF general law providing
for the voluntary formation of cor
porations to engage 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 10 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 organiEa
lions.
It is even more manifest now than
Ii was then that the denunciation OF
conspirac4es In restraint OF trade
should not and does not mean the de
nial Of organizations large enough to
be intrusted with our interstate and
foreign trade. II has been made more
clear now than 1t was then that a
purely negative statute hEe the anti
trust law may well be supplemented
by specific provisions for the building
up and regulation of legitimate ma
tiOnai and foreign commerce.
GovsrRwsnt Administrative Experts
Needed eO Aid Courts In Trust
DIssogutions.
The drafting Of the decrees In the
dissolution Of the present trusts, with
q view to their reorganization into le
climate corporations, has made IL es-
pecially apparent that the courts are
not provided with the administrative
machinery 10 make the necessary I'm
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 suitable reorsaniza.
tion 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
lions.
FedoaaI Corporation oonsnissicn Pee
pessd.
I DO not set forth In detail thu terms
and sections Of a statute which might
supply the constructive legislation per-
mitting and aiding the formation Of
combinations Of capital into federal
corporations. They should be subject
to rigid rules an to their organisation
and procedure, including effective pub
licity. and TO the closest supervision as
10 the issue Of stock and bonds by an
executive bureau or commission In the
departmeut Of commerce and labor. 10
which IN times Of doubt they might
well submit their proposed plans FOR
future business. 1t must be distinctly
understood that incorporation under