The Washington times., 1911-12-16

becomes seif-enforcing because men
are advised not to do that concerning
whose legality there Is grave doubt. Let
the present law be enforced with such
represents the sincere purpose of the
people to prevent monopoly and we
shall presently. have a great improve
ment of conditions.
disintegration for combinations is a
very necessary matter, and II should be
delegated to an administrative rather
than Q judicial authority.
II the power to revoke a license were
to be carried to the extent OF deprtvfng
the property of its right to continue
the function of production, then there
would be necessity for the most de-
tailed inquiry, for appeals to the courts,
for the utmost care to assure the con-
servation Of all interests"
No Inquiry Needed.
But, surely said Senator Cummins.
mo very great inquiry would have been
needed to convince q commission that
the practices OF the Tobacco trust must
be reformed7"
II am not SO sure, All those prac--
the Ss' rss ss detailed sas Y Yet the record
Of the circuit Judges declared there
was nothing in the record to Justify
the steps we desired, by way OF as
suring against continuance of such
practices" replied Mr.. Branders.
The witness strongly urged that the
Sherman act be given q chance. He
recalled that in recent time much
progress has been made toward maxi
Fat one time an attorney general
believed the whole act unconstitution-
al. In the Knight case the Supreme
Court very greatly restricted Its APP
pesss aso Only hyy.s st few
DDS which we all regard as ruinous.
were regarded as entirely 5ustifiable.
In the old Whisky trust cases. such
practices as running competitors by
sideration whatever in the courts.
I'VE are advancing. learning, under.
standing more accurately. The law
now means something, 1t has provided
that its penalties are serious, and can
be enforced"
Objects to Registering.
Mr.. Brandeis Objected 10 any plan OF
registering corporations that might
be construed tn involve an apparent APP
proved, valuation, or guarantee Of tho
plan and purposes Ct the corporation.
ITO u.s." he said. 1T seems perfectly
clear that half the Steel Corporations
capitol was water. The eminent gen.
tlemen who formed It insist that II was
the f,nanciers would welcome plan
that would seem to give them q Cow
eminent certificate Of the general char
ecter Of their project"
Mr.. Brandeis declared the effort to
contro, capitalization should be under
taken charity. Any Government action
that caused 1t to be construed as in
the nature Of Government assurance
OF the r,asonableness of cdJ italiza ion
would be welcomed by promoters.
Promoters Profits.
zone Of the worst business practices"
he said. sis the exaction Of vast re-
wards by promoters. financial syndi-
Gates. etc, for a service that amounts
think this is \ good security to invest
in Bankers and other people who
might be advised with about invest
the huge promotion and Underwriting
fees: they get that which they do not
earn. for which thcY render no service. g
Mr.. Brandeis was insistent that the
effort to control capitalization was too
great an undertaking for a commission
to deal with. Capitalization is Of re-
latlvelY small concern to u.s." ne said.
1.-THE Stondard OIL and Tabocca trusts
conducted their uncomfortable extor-
tons without overcapita1ization. The
monopoly power is what we need to de.
stroy: Standard OIL shares went to S6o(
and 500; Tobacco common. about $500
ia said to be worth twice that much
The retio that capital bears to value Il
unimportant. Excessive capitalization
will not earn returns and in!ure the
MED. To control capitalization Is or
thing that may we'll be invoked to pro-
mote honestly In business, but I don't
think 1t paramount in Importance"