Morgan County republican. (Versailles, Mo.) 1906-1914, 1911-12-07

ton. The suggestion 10. that We may
have a combination Of W corporations.
which may run on for years. and that
subsequently the attorney general may
conclude that II was q violation Of the
statute, and that which was supposed by
the combiners to be Innocent then turns
out to be Q combination In violation of
the statute. The answer to this hypo-
thetical case 10 that when men attempt
to amass %stupendous capital as will enable
them to suppress competition. control
prices and establish q monopoly they
know the purpose of their acts. Men do
not do such a thing without having Il
clearly In mind.
I see no objection-snd indeed / can zee
decided advantages-in the enactment Of
a law which shall describe and denounce
methods OF competition. which arc unfair
and are badges OF the unlawful purpose
denounced In the antitrust lev.
Federal Incorporation Recommended.
In a special message TO congress on
January Z. 1910. I ventured 30 point out
the disturbance to business that would
probably attend the dissolution OF
these offending trusts. J said:
But such an investigation and pos
slble prosecution OF corporations whose
prosperity or destruction affects the
comfort not only Of stockholders but OF
millions OF wage earners. employees,
and associated tyadesmen must neces-
sarily tend to disturb the confidence OF
the business community. TO Cry up The
now flowing sources of capital from its
places OF boarding. and produce @ halt
in our present prosperity that will
cause suffering and strained circum-
stances among tho innocent many for
the fault Of the guilty few. The aues-
tion which ] wish IN this message 20
bring clearly to tho consideration and
discussion Of congress Is whether. In
order to avoid such o possible business
Danger something cannot be done BY
which these business combinations may
be offered a means withou great imam.
cial disturbance, OF changing the char
acter. organisation and extent Of their
business into one within the lines OF
the law under federal control and su-
pervision. securing compliance with the
antitrust statute.
Generally. IN tho industrial combi-
nations called "Trusts.' the principal
business is the salo OF goods in many
states and In foreign markets; in other
words. the interstate and foreign busi-
ness far exceeds the business done IN
any one state. This fact will Justify
the federal government in granting Il
federal charter to such O combination
TO make and sell In Interstate and for
eign the products OF useful
manufacture under such limitations as
will secure a compliance with the anti.
trust law. 1t Is possible so to franc
a statute that while 1t offers protec.
tion to a federal company against
harmful. vexatious and unnecessary
invasion by the states, II shall subject
II to reasonable taxation and control
by the states with respect to lite puro-
ly local business.
Corporations organised under this
act should be prohibited from acquir-
ing and holding stock In other corpora
to.A I-.-@~N 10 >~a1v N~ ,~NN
approval by the proper federal author
ity), thus avoiding the 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 monoDolies.
'If the prohibition Of the antitrust
act against combinations in restraint
of trade 10 10 be effectively enforced.
IT is essential that the national govern
ment shall provide for the creation OF
national corporations to carry on q
legitimate business throughout the
United States. The conflicting laws OF
the different states or the Union with
respect to foreign corporations makes
II dilscult. II not impossible. for n
corporation to comply with their ro-
quirements SO as to carry on business
in a number OF different states"
Federal Cooperation Commission Pro-
posed.
I do not set forth In detail the terms
INK sections Of a statute which might
supply the constructive legielation permit
ting and aiding the formation OF combino-
lions of capital into federal corporations.
They should be subject 20 rigid rules a.
to their organization and procedure. In
GLIDING effective publicity, and to tho
closest supervision as 10 the issue Of
stock and bonde by on executive bureau
90 anp.rNtaata, In Nhn damn pnAr ~
and labor. 20 which In times %
doubt they might we'll submit their pro-
Isposed plans for future business. 1t must
be distinctly understood that incorpora.
ton under a federal law could not OK
emp the company thus formed and ito
in~corporators and managers from prose-
cution under the antitrust law for sub
sequent Illegal conduct. but the publicity
of its procedure and the opportunity for
frequent consultation as to the legitimate
purpose Of Its transactions would offer
1t al great security against successful
prosecutions for violations Of the Law
as would be practical or wise.
Such a bureau or commission nigh:
we'll be invested also with the duty al
ready referred TO-. OF aiding the courts
In the dissolution and recreation OF trusts
within the law. II should be an execu-
tive tribunal Of the dignity and power OF
the comptroller OF the currency or the
interstate commerce CoH1HissiOn, WHICH
now exercise supervisory power over i'm
portant classes OF corporations under fed
eral regulation.
The drafting of ouch a federal incorpor-
alton law would offer ample opportunity
to prevent many manifest evils In corpor-
ate management today. including irre-
sponsibility OF control In the hands Of
the few who are not the real owners.
Incorporation Voluntary.
I recommend that ne federal CHI =
thus to be granted shall be voluntary. at
least until experience j~ustifes mandatory
provisions. The benefit to be derived
from the operation OF great businesses
unde the protection OF such a charter
would attract all who are anxious to keep