The Green Forest tribune., 1911-12-08

fectve for such a purpose been entered
 by court than that against the Tobacco trust
 It has been assumed that the present pro-rata and common ownership in all 1 these companies by former stockholders [ of the trust would insure a continuance of the same old single control of all the companies into which the trust has by | decree been disintegrated. This is er- roneous and is based upon the assumed in- | efficacy and innocuousnesS of judicial in l functions. The companies are enjoined 1 from cooperation or combination; they 1 have different managers, directors, pur- | chasing and sales agents. If all or any of the numerous stockholders, reaching !; into the thousands. attempt to secure 1 concerted action of the companies with a | view to the control of the market their | number is so large that such an attempt | could not well be concealed and its prime
 movers and all it's participants would be | at once subject to contempt proceedings l and Imprisonment of a summary charac- | ter. The immediate result of the present
 situation will necessarily be activity by | all the companies under different man.
 agers and then competition must follow.
 or there will be activity by one company | and stagnaton by another.
 Cry for Repeal of Law. But now that the antitrust act is seen | to be effective for the accomplishment Of l the purpose of it's enactment, are met | by a cry from many different quarters | for it's repeat It is said to be obstructive | of business progress to be an attempt to | restore old-fashioned methods of de- structive competition between small units, | and to make impossible those useful com | binations of capital and the reduction of | the cost of production that are essential to continued prosperity and normal | growth.
 In the recent decisions the Supreme | ir l in the statute which condemns combna- l tions of capital or mere bigness of plant | organized to secure economy in produc- l ton and a reduction of it's cost. It is only l when the purpose or necessary effect of l the organization and maintenance of the l combination or the aggregation of inn nense size are the stding of competition, l actual and potential and the enhancing l of prices and establishing a monopoly, | that the statute is violated
 For Federal Incorporation. h a special message to congress on | January :, 1910. I ventured to point out l the disturbance to business that would | probably attend the dissolution of | these offending trusts. 1 said:
 aBut such an investigation and pos | sihle prosecution of corpora tions whose l prosperity or destruction affects the | comfort not only of stockholders but of l millions of wage earners, employees, 1 and associated tradesmen must neCes- | sarily tend to disturb the confidence of | the business community, to dry up the | now flowing sources of capital from it's | places of hoarding. and produce halt 1 in our present prosperity that will l cause suffering and strained creum- | stances among the innocent many for ! the fault of the guilty few. The ques- | tion which l wish in this message to
 bring clearly to the consideration and | discussion of congress is whether. in ' q avoid q hIISInRSS | dauger. something cannot be done by 1 which these business combinations may l be offered means. without great finan- l cial disturbance. of changing the char
 acter, organization and extent of their
 business into one within the lines of | the law under federal control and Su- 1 perVision. securing compliance with the | anti-truGt statrta
 Generally, in the industrial combt- | nations called Trusts the principal | business is the sale of goods in many | sta tes and in foreign markets; in other l words. the interstate and foreign huSt-
 ness far exceeds the business done in | any one state. This fact will justify l the federal government in granting a | federal charter to such a combination 1 to make and sell in interstate and for | eign commerce the products of useful | manufacture under such limita tions as l will secure a compliance with the anti | trust law. It is possible so to frame |
 ton to a federal company against | harmful. veXatious and unnecessary | invasion hv the states. 1t shall subject l it to reasonable taxation and control
 by the states with respect to its pure l ly local business.
 | "Cornora tionS orraniZed under this l act should he prohibited from acquir- | ing and holding stock in other corpora i tions texcept for special reasons, upon
 a.nrova' hv the proper federal author l ity), thus avoiding the creation under national auspices of the holding com | pany with subordinate corporations in
 dfferent stetes which has been such an | effective agency in the creation of the | great trusts and monopolies.
 If the prohibition of the antitrust | act a@ainst combina tions in restraint of trade is to be effectively enforced. | it ts .ss tfai that the national govern | mert shall nro~ide for tne creation of | national corporations to carry on | legitimate business throuGhout the | United States The conflicting laws of | the different states or the Union with l respect to foreign corporations makes l it d1Acult if not impossible. for one | corpora tion to comply with their re- | quirements as to carry on business | in a rur7her of different states" Federal Commission Proposed. I do not set forth in detail the terms | and sections of a statute which might ! supply the constructive legislation permit | ting and aiding the formation of combina- | tions of capital into federal corporations. | They should be subject to rigid rules as | to their organization and procedure. in- | cludng effective publicity. and to the | closes, supervision to the issue of | stock and bonds by an executive bureau 1 or commission in the department of | commerce and labor, to which in times of | doubt they might well submit their pro- | posed plans for future business. It must l be distinctly understood that incorpora- ton under federal law could not ex- enrnt the company thus formed and it's l incoTporators and managers from prose-
 eution under the antitrust law for sub sequent illegal conduct. but the publicity l of it's procedure and the opportunity for frequent consultation as to the legitimate purpose of it's transactions would offer ii as great security against successful prosecutions for violations of the law as would be practical or wise
 ! 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 operation of great businesses
 under the protection of such a charter would attract all who anxious to keep within the lines of the law. Other large combinations that fail to take advantage Of the federal incorporation will not have right to complain if their failure is ascribed to unwillingness to submit
 their transactions to the careful scrutiny competent supervision and publicity at-
 tendant upon the enjoyment of such a
 charter. Fame of u Hung Chang. There are far too many famous men
 nowadays and if iS not aaSy to re-