The Irish standard., 1911-12-09

trust
II has boon assumed that the present
pro-reta rud common ownership In all
these companies by former stockholders
Of the trust would insure a continuance
OF the same old single control Of all the
into which the trust has BY
d. rec been disintegrated. This 10 or
and IL based upon the assumed in
efficacy and innocuousness OF judicial In
functions. The companies are enjoined
from cooperation or combination: they
have different managers. directors. puz-
chasing and sales agents. II all or an.
of the numerous stockholders. reaching
Into the thousands. attempt to secure
concerted action Of the companies with
view t. the control Of the market. their
number Is 30 large ti.at such an attempt
could not we'll be concealed and its prime
movers and al! its participants would DO
at once subject to contempt proceedings
and iml 'sonment OF a summary charac-
ter. The immediate result OF the present
situation will necessarily be activity by
all tho C. mpInies under different man
ayers ana then competition must follow.
or there will -ctivity by one company
ana stagr alton by another.
CT" for Repeal Of Law.
But now that the antitrust act Is seen
to be effect ve for the accomplishment OF
the purpose OF it's enactment we are met
by cry from many different quarters
for its repeal. 1t Is said to be obstructive
OF business progress. to be an attempt to
restore o,d-fashioned methods OF de-
Etructive comp, 'ition between small units
and to make impossible those useful COM
binations OF capital and the reduction Of
the c, Of production that are essential
to 4tinued prosperity and normal
growth.
In the recent decisions the Supreme
court makes clear that there IL nothing
in the statute which condemns coinbina-
tons Of capital or mere oigness Of plant
ton and a reduction OF IT. cost. 1t Is only
when the purpose or ne, essnry effect OF
the organization and maintenance of the
combination or the aggr CATION Of I'M
mense size are the sitting OF competition.
actual and potential. and the enhancing
of prices and establishing d monopoly.
that the statute Is violated.
For Federal Inc poratlon.
In a special messnge to congress on
January I. 1910. venturcd to point out
tn disturbance to business that would
probably attend the dissolution OF
these offending trusts. said:
But such an investigation and pos
sible prosecution of corporations whose
prosperity or destruction affects the
comfort not only OF stockholders but OF
millions Of wage carncrs. employees.
and associated tradesmcn must neces-
snrily tend to disturb the confidence OF
the business community, 10 dry up the
now flowing sources OF capital from Its
plh ,es OF boarding and produce a halt
In our present prosperity that VIII
cause suffering and strained circum-
stances among the Innocent many for
the fault OF the guilty few. The ques-
ton which l wish in this message to
bring clearly to the consideration and
discussion of congress Is whether. In
order TO avoid such a possible business
danger. something cannot be done by
which these business combinations may
be offered a means. without great finan-
cial disturbance. OF changing the char
acter. organization and extent Of their
business INTO one within tho lines OK
the law under federal control and SUI
pervision. securing compliance with tho
antitrust statute.
Generally. in the Industrial combi-
nations called Trusts. the principal
business Is the sale of goods in many
states and in foreign mnrke's; In other
words. the interstate and foreign bust
ness far exceeds the usincSs done In
any one state This fact will justify
the federal government in granting "A
federal charter to such combination
to make and sell in INTERSTATE and for
eign commerce the products OF useful
manufacture under such limitations M
will secure n compliance with the anti
trust law. IT ia possible SO to frame
a statute that while 1t Offers protec-
ton to federal company against
harmful. vcxatlous and unnec"as""v
invasion by the states. II shall subject
1t to reasonable taxation and control
by the states with respect to It's pure
ly local business.
Corporations organized under this
act should be prohibited from ncunir-
ing and holding stock in other corpora
Cny .p1
approval by the proper federal author
ity). thus avoiding tho creation under
national auspices OF the holding COM
pany with subordinate corporations In
different states. which has been such an
effective agency IN the creation OF the
great trusts and monOpolies.
"If the prohibition OF the antitrust
net 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 n
Legitimate business throughout tho
United States The conflicting laws OF
the different states or the Union with
respect to foreign corporations makes
1t diMcult. II not Impossible. for ne
corporation to comply with their re-
1uircments so as to carry on business
in n number Of different states"
Federal Commission Proposed.
do not set forth In detail the terms
and sections of II statute which might
supply the constructive Legislation permit
ting and aiding the formation Of combna-
lions Of capital into federal corporations
They should be subject to rigid rules lis
to their organization and procedure. in
Guiding effective publicity. and to the
closest supervision MS to the issue OF
stock and bonds by an executive bureau
or commission in the department OF
commerce AMI labor. to which In times OF
doubt they might we'll submit their pro.
posed plans for future business. 1t must
be distinctly understood that incorpora-
ton under a federal law could not ex-
cmpt the company thus formed and its
incorporators and managers from prose
.cut,on under the antitrust law for sub
sequent illegal conduct but the publicity
of its procedure and the opportunity fol
frequent consultation rs to the Legitimate
purpose OF its transactions would offel
II AS great security against successful
prosecutions for violations Of the Law
AZ would be practical or wise.
recommend that the federal charter
thus to be granted shall be voluntary. a
least until experience justifies mandator,
provisions The benefit to be derived
from the operation Of great businesse!
under the protection Of such chartel