The advocate. [volume] (Charleston, W. Va.) 1901-1913, 1911-12-07


legislation permitting and aiding the
formation oi combinations OF capital
Into Federal corporations. They
should be subject to rigid, rules as
to- their organization and procedure
including effective publicity, and to
the closest supervision as to the Is
sue OF stock and bonds by an ex-
ecutiVe bureau or commission in the
department of Commerce and
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
incorporation under Federal law
could not exempt the company thus
formed and it's lncorporators and
managers from prosecution under
the antitrust law for subsequent IL
legal conduct, but the publicity OF
It's procedure and the opportunity
for frequent consultation with the
bureau or commission in charge Of
the incorporation as to legitimate
purpose Of it's transactions would Of
fer 1t as a great security against sue
cessful prosecutions r"F:vio1ations
OF the law as would be practical or
wise. e. :. ,.... 80. .....
Such a bureau or commission
might we'll be invested also with. the
duty already referred to-, Of aiding
courts in the dissolution and re-cre-
alton Of trusts within the law 1t
should be an executive tribunal of
the dignity and power of the Comp
troller of the Currency or the Inter
state Commerce Commission, Which
now exercise supervisory power over
important classes Of corporations
under Federal regulation.
The drafting Of such a Fedora;
incorporation law would offer ample
opportunity to prevent many mani
fest evils in corporate management
today, including irresponsibility of
control in the hands of the few
men who are not the real owners.
Incorporation Voluntary. -
recommend that the Federal
charters thus to be granted shall be
voluntary, at least until experience
justifies mandatory provisions The
benefit to be derived from the op-
Grafton Of great businesses under
the protection of such a charter
would attract all who are anxious tc
keep within the lines of the law,
Other large combinations tina. fail
to take advantage Of the Federal IN
corporation will not have the right
to complain If their failure is as
cribed to unwillingness to submit
their transactions to the careful
official scrutiny competent supervis-
ion and publicity attendant upon the
enjoyment Of such a charter.
Only Supplemental Legislation
Needed.
The opportunity thus suggested
for Federal incorporation, it seems
70 me, is suitable constructive legis-
lation needed to facilitate the squar-
Ing Of great Industrial enterprises
20, the rule Of eactton laid; down. by
the anti-trust law! This statute as
construed by the supreme court
must continue to be the line of dis
junction for legitimate business. 1t
must be enforced, unless we are to
Danish individualism from all bus
mess and reduce it to one common
system Of regulation OF control of
prices like that which now prevails
with respect to public utilities, and
which when applied to all business
would. be long step toward state
socialism,.
Importance of the Antitrust Act
The antitrust act Is the express
sion Of an effort Of freedom-loving
people to preserve equality Of oppof-
tunity.. 1t is the result of the con-
fident determination Of such a peo-
pie to maintain their future growth
by preserving uncontrolled and un-
restricted the enterprise of the tndi-
vidua1, his industry, his ingenuity,
his intelligence, and his independent
courage.
For twenty years or more this
statute has been upon the statute
book. All knew it's general purpose
and approved. Many Of it's violators
were cynical over it's assumed impo-
tence. 1t seemed impossible Of en-
forcement, Slowly the mills of the
courts ground, and only gradually
did the majesty Of the. law assert it.
self. Many Of it's statesm
died before it became living force,
and they and other saw the evil
grow which they had hoped to des-
troy. Now it's efficacy is seen; now
its power is heavy; now it's object is
near achievement. Now we hear the
call for its repeal on the plea that
it interferes with business prosper
ity, and we are advised in most gen.
eral terms, how by some other stat
ute and In some other way the evil
we are just stamping out can be
cured, If we only abandon this work
OF twenty years and try another ex-