Evening journal., 1911-11-22

LICENSE TRADE
Sherman Law a Menace to
Business and Should be
Repealed, He Says
BELIEVES PUBLIC MISLED;
URGESN BANKING SYSTEM

NAllialh ~ bou6ido hdo NiNaii ~ "a
pressed his views upon the questions
which are at present foremost in tho
public mind. The shoe manufacturer
who has done as much. II not
more than any other individual 10 |
make Massachusetts footwear known 1
throughout the world, believes that |
the Sherman antitrust law should be /
repealed, and that in its stead there /
should be created a system for licens- |
ing great business corporations.
Mr. Douglas says that new bank |
ing and currency system also is ur-
gently needed, such a system as has
been recommended by the commits
sion appointed by Congress which has
investigated all the banking systems
of the civilized world. Mr. Douglas
considers the tariff really a secondary
consideration, although he favors an
equitable scale of duties, to be ad
iusted as occasion may require by
permanent board which should be
made as independent of political in
fuences as is the United States Su
preme Court.
Finally Mr. Douglas is of the opin-
ion that in order to remove prejudice
from the minds of multitudes of peo-
pie and give the public accurate in
formation as to the causes Of busi-
ness unrest and the remedies there
for, the manufacturers and great in
dustrial leaders of the country should
organize and systematically go about
the work of showing what is neces-
sary to establish business upon a
substantial foundation" There is
splendid organization on the other
side" he added. lin what is common
ly called the progressive movement.
Where the Public Stands.
politics aside entirely" he con-
tinued, the public generally does not
know what are the causes of busi-
ness unrest, nor what is being done
or undone by the prosecution of great
corporations by the government.
Many in both the great parties are
anxious to be progressive. They stand
for the initiative and referendum, for
direct primaries and for the election
of United States senators by direct
vote. In the same spirit they come to
the question of the operation of the
Sherman law.
but, as a matter of fact, labor has
been more steadily employed and at
higher wages since the organization
of the great corporations than when
business was done on the smaller
scale of 25 years ago. The business
of nv own company would be much
smaller If it we're not a corporation.
But the stock of this concern is
owned by 1400 stockholders. If It
were not incorporated il could not do
the large business It now does II is so
with all corporations. People need 10
learn that corporations should be en-
] couraged and considered more valua-
bic to all than a private individual
business can be.
Have Come to Stay.
J Large business organizations have
come to stay. We cannot go back "a
old conditions. We must meet world
competition. Large concerns can pro-
duce goods at lower cost than small
ones. Germany favors large corpora
tions. The method Of the present ma
tional administration is to dissolve
the great organizations and make
them smaller. which is a backward
step. There should be no limit to a
corporation doing a large and legitl-
mate business, such as would be pos
sible under the licensing plan which
I favor.
'Prejudices against corporations
merely because they are big, per
hans. must be done away with. They
give labor better returns. They
cheaper product and thus benefit the
consumer. They give opportunities tC
small investors who get returns other
wise unattainabla. They employ abl'
, Young men. who have no capital a
, all. but who receive handsome sala
ries for their ability and service.
, Now as to the licensing plan.
. do not believe we have any use TO
the Sherman law. It has been a men
, ace TO business ever since prosecu
tions under it we're begun by tn
, government In its place there SHOULD
! be a department at Washington q
, grant licenses to all manufacturer
, and corporations in this country VIII
do an interstate commerce business.
, "Tbe law should be made so cleal
' plain and definite that it could not b
= misunderstood. II should require al
capital TO be paid in full. Semi
q yearly statements should be given {
! the public and certified by a publ
= accountant. There should he a boar
! of examiners in each state TO loo
- after these corporations just as on
, national banks are watched by tn
national government They shoul
I. have the right to enter the office
u and examine the records Of all tn
directorates of these companies.
Penalty Forfeiture Of License
"The Penalty for failure to compl
with the terms Of the license shoul
y be the forfeiture of the license itsel
: that is. the closing up of the bus
. ness. Under such law 1t would NJ
u be necessary to carry on any MOI
y prosecutions. | believe our bushes
. men throughout the country intend
: do an honest business, but they al
g puzzled as to what they can do lega
e ". They want to know what is Law
full. The licensing system woul
leave no antiquities to bewildi
them.
l. Some may say that they believe
s. national incorporation. | say 'nC
" because I believe in state rights an
Is that the corporations should be il
II corporated by the states as heret
l3 fore. and that the money receive
'9 should 90 to the states rather ths
)r to the United States. A license is a
h, that is necessary. Such a syste
l. would establish confidence in the bus
ID ness world and today the busine
l. world is discouraged. Busines me
VI lack confidence in our lawmakers.
Iy "The first thing for the lawmake
)r to do is to try to re-establish tn
confidence and to start business on
lt prosperous era and that can be don
Y, and rapidly, If they take up the
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