The Washington herald., 1911-11-30
GARY ADVOCATES .
FEDERAL LICENSES
Outlines Trust Evil Cure to
Senate Committee.
ON WITNESS STAND ALL DAY
Steel Magnate Advises Regulation
of Corporations Through Govern
ment Commission with Powers
Similar to Those Now Vested in
Interstate Commerce CommissIon.

Regulation of corporations through the
medium Of a Federal commission created
by Congress was advocated yesterday be-
fore the Senate Committee on Inter
state Commerce, by Z. H. Gary, of the
United States Steel Corporation. Judge
Gary declared that the only regulation
adequate to deal with modern aggrega-
tions OF capital is regulation by the Fed
eral government, because the subject
matter of the regulation is largely in
terstate commerce with which the States
may not interfere" Judge Gary will re-
turn to Washington Wednesday or
Thursday of next week, to further elab-
crate his plan OF government control OF
interstate corporations.
The commission plan for the control
of corporations as urged by Judge Gary
would practically give the government the
power to fix prices of all industrial COM
modities. 1t would have as broad powers
of supervision over industrial corpora
tions as is now exercised by the Inter
state Commerce Commission over the
railroads doing business between the
States. Senator Cummins. of Iowa, a
member of the committee, attacked the
constitutionality of the Gary plan, which
embraces the Federal license proposal.
But Judge Gary insisted that the law
he suggested would stand the test OF
1udlclal procedure.
Conditions Are Changing.
Il believe" said Judge Gary. that the
sentiment Of the country and the prin-
ciples of law, in their application, are
being modified to meet changed and
changing conditions. I believe that even
private corporations. so called, are reach
ing the position where they are in prin-
ciple more or less quasi-public corpora
tions. / Believe that the government has
the right, under the Constitution, in the
regulations OF interstate commerce, to
say that there shall be a maximum price
fixed for the sale of the products Of a
manufacturing concern provided II is
necessary to do so in order to prevent
undue restraint of trade
Judge Gary outlined his plan as fol-
lows:
Interstate commerce should be required
to obtain a Federal license, which would !
be granted only upon the following con-
ditions:
(a) That the utmost publicity should
be observed in all matters specified
by the Federal authorities.
(b) That there should be no over
capitalization.
(c) That prices should be the same
to all customers, without discrimlna-
ton between persons or localities.
Id That the business should be
conducted in conformity to the laws
of the United States, and not in con-
travention thereof.
II there be any other regulations cap
able of general application, they could
be made conditions of the granting and |
of these licenses.
Duties of Commission.
Second-A corporation commission should
,e created, similar to the Interstate
Commerce Commission, with power to
rant, suspend. and revoke these licenses.
ubject to a right of appeal to the courts
This commission should be given the fol-
owing powers:
(a) To see to II that the conditions
upon which interstate commerce L.
censes have been granted are strictly
observed.
Cb) To decide questions submitted by
the managers of business organiza-
tions who desire to observe the law
in all respects and to avoid any ques-
ton of ilIegality in their actions.
(c) To regulate prices so far as nee
essary to prevent monopoly and re-
straint of trade-for example IL prices
should be established by trade agree
ments, or if raw. materials, such as
cotton or tobacco, should be pooled, ,
or IL patents should be used to the
public detriment - this commission
should be empowered 70 establish
maximum prices for the goods thus
controlled.
I'D Provision should be made for an
appeal from decision of this COM
mission to the Commerce Court or
some other qualified tribunal, so that
the refusal, suspension, or revocation
of an interstate commerce license
could be reviewed by the courts be-
fore final determination of the
matter.