Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1911-12-07

fectixs for such = purpose W. |If.It|
b. Z court than that kgpin1t ths Tobacc1
trust. = "a = a. =, & q. 4
II has bfsb assumed that the present
pro5rath ard common pHusfilip IN all
these companies By former ntoekholder1
Of the trust would insure continuance
Of the same old single control Of all the
companies into which the trust has By
decree been disintegrated This IL err
roneouB and II based upon the assumed in
efficacy and innocuousness Of judicial I'M
functions The companies are enjoined
from cooperation or combinations. they
have different managers. directors. pur-
chasing and sales agents II all or any
Of the numerous stockholders, reaching
into the thousands attempt to secure
concerted action of the companies with
view TO the control Of the market. their
number is so large tat such an attempt
could not well be concealed and ~ pr M
movers and all It's participants would ne
at once subject to contempt proceedinRs
and irnpr. sonmeut of a summary cnHrac-'
ter The Immediate result of the pres. Mt
situation will necessarily be activity by
all the companies under different mar
ayers and then comp .tition must follow.
or there viii he activity by one company
and staFnstson nv another.
Cry for Repeal Of Law.
But nov that ine anti-irus Is seen
to be effective for the accomplish nent OF
fhe purpose of its enactment, we are met
by cry from many different quar.e Fs
for its r, peal 1t is said to be obs. ructive
Of business progress. to be attempt to
restore oid-fashioned methods OF de-
structive competition between small uniss.
and to make Impossible those useful conn
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
court makes clear that there Ii nothing
in the statute which condemns combina-
tons of capital or mere bigness of plant
organized to secure economy In produce
ton and reduction of its cost. 1t Is only
when the purpose or necessary effect Of
the organization and maintenance of the
combination or the aggregation of inn
mense size are the sitting of competition,
actual and potential, and the enhancing
of prices and establishing monopoly,
that the statute Is violated;
For Federal Incorporation.
In special message to congress on
January :. 1910 ventured to point out
the disturbance to business that would
probably attend the dissolution of
=these@offending trusts. said
Bur such an investigation and pos
sfble prosecution of corporal ons whose
prosperity or destruction affects the
comfcrt not only of stockholders but OF
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 its
places of boarding. and produce halt
in our present prosperity that will
cause suffering and strained circum-
stances among the innocent many for
the fault of the guilty few. The ques.
tion which / wish in this message to
bring clearly to the consideration and
discussion of congress is whether. in
order to avoid such a possible business
danger. something cannot be done by
which these business combinations may
be offered means. without great finan-
cial disturbance. of changing the char
acter, organizat ion and extent. of their
business into one within the lines OF
the law under federal control and SUI
pefvision. securing compliance with the
antitrust statute.
Ger orally, in the Industrial combi-
nations called Trusts the principal
business Is the sale of goods in many
states and In foreign markets; in other
words. the interstate and foreign husi-
ness far exceeds the business done in
any one state. This fact will Justify
the federal government in granting
federal charter to such a combination
to make and sell in interstate and for
eign commerce the products Of useful
manufacture under such Imitation as
will secure compliance with the anti
trust law. 1t is possible so to frame
a statute that while 1t offers protec-
ton to federal company against
harmful, vexatious and unnecessary
invasion by the states, 1t shall subject
1t to reasonable taxation and control
by the states with respect to its pure
ly local business.
Corporations organized under this
act should be prohibited from acquir-
ing and holding stock in other corpora
lions. except for special reasons. upon
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 monopolies.
IF the prohibition of the antitrust
act against combinations In restraint
of trade is to be effectively enforced,
1t Is essential that the national govern
ment shall provide for the creation of
national corporations to carry on a
legitimate business throughout the
United States. The conflicting laws OF
the different states or the Union with
respect to foreign corporations makes
1t di1Scu1t If not impossible. for ne
corporation to comply with their re-
qufrements so as to carry on business
in number of different states.
Federal Commission Proposed.
do not set forth in detail the terms
and sections of 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
Guiding effective publicity, and to the
closest supervision as to the issue of
stock and bonds by an executive bureau
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
be distinctly understood that incorpora-
ton under federal law could not ex-
empt the company thus formed and its
incorporators 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
it 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 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
a right to COMPLAIN II their failure Is 4
ascribed to unwilt.ngness to submit |
their transactions to the careful scrutiny, |
competent supervision and publicity at
tendant upon the enjoyment of such
charter.