The Cairo bulletin., 1911-12-06

up and regulation Of lcgitlmnfes na.
tionai and foreign commerce #
Government Administrative Es:perss
Needed to Aid Courts In Trust
Dissolutions.
( The draftin: of the DEGREES in tile
dissolution OF Che present trusts. with
q View to their reorganization into le-
Ultimate corporations has made Ii es'
I, pecially apparent that the courts, nIr
not provided with he administrative
machinery % make HI necessary IN
gnlries preparatory 10 reorganization
Or to pursue such Inquiries. and they
should be cmpnwercd 20 lnyot;e the
lid Of the bureau VI corporations In
Determining The suitable rporganiza
ton Of the disiliiegrated parts The
7 tircifit court and ihe3Httornpy general
were greatly aided In framing The d.,
t.'ep In the tobacco trust dissolution bt
an expert from the bureau of corpora
tons.
, FEDERAL Corporation Commission Pro !.
posed.
do not set forth in detail The terms
( end sections of " statutp which miyht
supply the constructive Legislation per
hitting and aiding the formntipu vi
combinations OF canita into federal
corporations. They should be subject
to rigid rules as to their organization
ard procedure. including effective pub.
licity. and TO he closest supervision lis
to the issue of stock and bonds by ;tu
executive bureau or commission IN, the
department. Of commerce and labor. to
which 10 times OF doubt they might
well submit their proposed plans fur
future business It must be distinct,
understood that incorporation under y
federal law could not exempt the com.
pany thus formed and its incorporates
and manage from prosecution uadeF
the antitrust law for. subsequent d
legal conduct, but the publicity Of it,
procedure and the opportunity for fre.
Quent consultation with the bureau o..
commission In charge Of the incornora-
ton as to the legitimate purpose Of 1t,
transactions would offer It as great So
curity against successful prosecute
for violations Of the law as would bp
practical or wise
Such bureau or commission might
well be invested also with The duly
already referred to Of aiding conitS
In the dissolution ard recreation a.,
trusts within the law 1t should be IN
executive tribunal of the dignity nm,
power Of the comptroller OF the ayr.
rency or the interstate commerce com
mission. which now exercises supcrvis-
DRY power over important classes OF
corporations under federal regulation.
The drafting of such federal in
corporation law would offer ample OBJ.
portunity to prevent many manifest
evils In corporate management to-day.
including responsibility Of control in
the hands of the few who are not the
real owners.
incorporation Voluntary.
I recommend that the federal char.
tiers thus to be granted shall be volun-
tary, at least until experience justifies
mandatory provisions. The benefit to
be derived from the operation OF great
businesses under the protection of such
charter would attract all who are
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 transact
lions to the careful official scrutiny.
competent supervision and publicity
attendant upon the enjoyment Of such
a charter. 8eat
Only Supplemental Legislation Needed.
The opportunity thus suggested for
federal incorporation. 1t seems to. me,
is suitable constructive legislation
needed to facilitate the squaring OF
great industrial enterprises to the rule
of action laid down by the antitrust
law. This statute as construed by the
supreme court must continue to be the
line of distinction for legitimate bust
ness. 1t must be enforced unless we.
are to Danish individualism from all
business and reduce 1t to one common
system of regulation or control Of
prices like that which now prevails
with respect to public utilities and
which when applied to all business
would be long step toward state so.
cialism.
Importance of the Antitrust Act.
The antitrust act is the expression
of the effort of a freedom loving peo-
pie to preserve equality OF opportunity
1t is the result of the confident deter.
mination Of such n people to maintain
their future growth by preserving I'M
controlled and unrestricted the enter
prise of the individual, his industry.
his ingenuity. his intelligence and his
independent courage.
For twenty years or more this stat
ute yhas been upon the statute book
All knew its general purpose and ap-
proved. Many OF its violators were
cynical over its assumed impotence.
1t seemed impossible Of enforcement.
Slowly the mills Of the courts ground
and only gradually did the majesty OF
the law assert itself. Many OF It's
statesmen-authors died before 1t be-
came living force and they and 9TH
ers saw the .evil grow which they had
hooo1 20 Joetroy Now ita affirarv Ia