Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-12-06

of the business community, to dry up
the now flowing sources Of capital
from its places of boarding and pro-
duce a halt in our present prosperity
that will cause suffering and strained
circumstances among the innocent
many for ths faults of the guilty few.
The question which I wish in this
message to bring clearly to the con-
sideration and discussion of congress
is whether. in order to avoid such
possible business danger, something
cannot be done by which these busi-
ness combinations may be offered
means. without great financial dis
turbance, of changing the character,
organization and extent of their BUSH
ness into one within the lines of the
law under federal control and super
vision, securing compliance with the
antitrust statute.
Generally in the industrial combina-
tons called trusts the principal bust
ness is the sale Of goods in many states
and in foreign markets-in other words.
Lut luleISIdle anu 1OLelSb DuS1ACSo LII
exceeds the business done in any one
state. This fact will justify the fed
eral government in granting a federal
charter to such a combination to make
and sell in interstate and foreign COM
merce the products of useful manufac-
ture under such limitations as will Sc
cure a compliance with the antitrust
law. 1t is possible so to frame stat.
ute that, while it offers protection to a
federal company against harmful, vex-
atious and unnecessary invasion by the
states. it shall subject it to reasona-
BILE taxation and control by the states
with respect to its purely local bust
ness. =
Corporations organized under this
act should be prohibited from acquir'
ing and holding stock in other corpo-
rations except for special reasons,
upon approval by the proper federal
authority, thus avoiding the creation
under national auspices Of the holding
company with subordinate corporations
in different states. which has been
such an effective agency in the crea.
ton of the great trusts and monopo-
lies.
'If the prohibition of the antitrust
act against combinations in restraint
of trade is TO be effectively enforced
it Is essential that the national govern.
ment shall provide for the creation OF
national corporations to carry on a le-
Ultimate business throughout the Unit,
ed States, The conflicting laws of the
different states of the Union with re.
spect to foreign corporations make ii
difficult, if not impossible, for one cor.
poration to comply with their require.
ments so as to carry on business in
number of different states"
/ renew the recommendation OF the
enactment of a general law providing
for the voluntary formation of cor
poraions to engage in trade and com
merce among the states and with for.
eign nations. Every argument which
was then advanced for such a law and
every explanation which was at that
time offered to possible objections has
been confirmed by our experience since
lne VI l1AC uAIA - hob oNN~
ute has resulted in the actual dissolu
ton of active commercial organiza
lions.
1t is even more manifest now than
It was then that the denunclation OF
eonspiracies in restraint of trade
should not and does not mean the de-
NAL of organizations large enough to
be intrusted with our interstate and
foreign trade. 1t has been made more
clear now than 1t was then that a
purely negative statute like the anti
trust law may well be supplemented
by specific provisions for the building
up and regulation of legitimate ma
tional and foreign commerce.
Government Administrative Experts
Needed to Aid Courts In Trust
Dissolutions.
The drafting of the DEGREES in the
dissolution of the present trusts, with
a view to their reorganization into le-
climate corporations, has made it es-
pecially apparent that the courts are
not provided with the administrative
machinery to make the necessary in
quiries preparatory to reorganization
or to pursue such inquiries, and they
should be empowered to invoke the
aid of the bureau of corporations in
determining the suitable reorganiza-
ton of the disintegrated parts. The
circuit court and the attorney general
We're greatly aided in framing the de-
cree in the tobacco trust dissolution by
an expert from the bureau of corpora
tons.
Federal Corporation Commission Pro-
posed.
do not set forth in detail the terms
and sections of statute which might
supply the constructive legislation per-
hitting and aiding the formation of
combinations of capital into federal
corporations. They should be subject
to rigid rules as to their organization
and procedure, including effective pub
licity, and to the closest supervision as
to the issue of stock and bonds by an
executive bureau or commission in the