The river press. [volume] (Fort Benton, Mont.) 1880-current, 1911-12-06

N0C AiStu O0A~S w OO01uGOS lu66 WOUIO
probably attend the dissolution OF these
offending trusts. l said:
But such an Investigation and DOS.
sible prosecution of corporations whose
prosperity or destruction affects the
comfort not only of stockholders. but
Of millions Of wage earners 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 a halt in our present prosperity
that will cause suffering and strained
circumstances among the innocent
many for the faults of the guilty few.
The question which l wish in this
message to bring clearly to the con-
sideration and discussion Of congress
is whether. in order to avoid such a
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 bust
ness into one within the lines Of the
law under federal control and super
vision. securing compliance with the
antitrust statute.
Generally in the industrial combina-
tons called trusts the principal bust
ness is the sale Of goods in many states
and in foreign markets-in other words.
the interstate and foreign business far
exceeds the business done in any one
state. This fact will justify the fed
| eral government in granting a federal
| charter to such a combination to make
| and sell in interstate and foreign COM
merce the products Of useful manufac-
ture under such limitations as will Sc
cure a compliance with the antitrust
law. It Is possible so to frame a stat
ute that. while it offers protection to q
federal company against harmful. vex-
atious and unnecessary invasion by the
states. it shall subject it to reasona-
BILE taxation and control by the states
with respect to its purely local bust
ness. =
Corporations organized under this
act should be prohibited from acquir'
ing and holding stock in other corpo-
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
ton of the great trusts and monopo
les.
IF the prohibition of the antitrust
act against combinations in restraint
Of trade is to be effectively enforced
it is essential that the national govern
ment shall provide for the creation Of
national corporations to carry on a lie
ed States. The conflicting laws Of TIN
different states Of the Union with re
spect to foreign corporations make /
difficult, If not impossible, for n col
poration to comply with their require
ments so as to carry on business in
number of different states"
I renew the recommendation of tn
enactment Of a general law providing
for the voluntary formation Of col
porations to engage in trade and CON
MERGE among the states and with fol
eign nations. Every argument whic
was then advanced for such a law an
every explanation which was at tina
J time offered t. possible objections ha
, been confirmed by our experience sine
the enforcement of the antitrust sta
7 ute has resulted in the actual dissoll
J ton Of active commercial organize
tons.
It is even more manifest now tina
It was then that the denunciation {
I conspiracies in restraint of traC
should not and does not mean the d
NAL of organizations large enough
e be intrusted with our interstate an
foreign trade. 1t has been made MOI
clear now than it was then that
J. purely negative statute like the ant
trust law may we'll be Supplement-
by specific provisions for the buildi1
: up and regulation of legitimate n
t tional and foreign commerce.
Government Administrative Exper
{ Needed to Aid Courts In Trust
Dissolutions.
The drafting Of the DEGREES in Il
Is dissolution of the present trusts, wi
n a view to their reorganization into
10 ultimate corporations, has made 1t {
r pecially apparent that the courts a
1t not provided with the administratt
'e machinery to make the necessary
s. quiries preparatory to r~eorganizati
IN or to pursue such inquiries, and tn
a. should be empowered to invoke t
W aid Of the bureau Of corporations
g determining the suitabl reorganis
he ton Of the disintegrated parts. T
circuit court and the attorney genel
u were greatly aided in framing the
n cree in the tobacco trust dissolution
an expert from the bureau Of corpol
tons.