The Dolores star., 1911-12-08
ReessI = Advancement.

tempt ana purpose TO suppress c0Wpeu-
tor BY undersslliug him q . prics - I'M
profitable ~ TO drive him out Of busansss.
or the mailing Of exclusive contracts with
customers under which they are required
70 0ive up ass0ciat ton with other Aanu-
fActurers, and numerous kindred meshods
for stininE composition and eRecting mo-
nopoly. should - described with sufncient
accuracy In . criminal statute on the ono
hand TO enable the government to short
meanors instead Of an sntirs conspiracy.
and. on the other hand. 70 serve the pur-
pose Of pointing out more In detail 10 the
business community what must be
avoided.
Federal Incorporated NsesmmeWAsd.
In q special message TO congress on
January Z. 1919. j ventuSed to point out
the disturbance to business that would
probably attend the dissolution OF
these offending trusts. ! said:
But such an investigation and pos
sibie prosecution Of corporations whose
prosperity or destruction Affects tbs
comfort not only Of stockholders but OF
millions OF wage earners. employees.
and associated tradesmen must nsces-
sarily tend to disturb the confidence s6f
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 Tor
the fault Of the guilty few. The ques-
ton which ] wish In this message 20
bring clearly to the consideration and
discussion of congress In whether. In
order to avoid such n possible business
danger. something cannot be done BY
which these business combinations may
be offered means. without great imam
ciai disturbance. Of changing the char
acter. organization and extent Of their
business into one within the lines OF
the law under federal control and SUI
pervision. securing compliance with the
ANTITRUST statute.
Generally. In the Industrial combi-
nations called Trusts, the principal
business 10 the sale Of goods In many
states and In foreign markets: In other
words. the Interstate and foreign bust
ness far exceeds the business done in
any one state. This fact will Justify
the federal government In granting
federal charter TO such q combination
to make and sell In interstate and for
eign commerce the products Of useful
ma nnfacture under such limitat ions a.
viii secure q compliance with the anti
trust law. II In possible so TO frame
a statute that while II offers protec-
ton to \ federal company against
harmful. veHatious and unnecessary
invasion by the states. II shall subject
u TO reasonable taxation and control
by the states with respect to its pure
~ local business.
Corporations organised under this
set should be prohibited from acQuir-
ing and holding stock in other corpora
tions t~xcept 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 N
different states. which has been such an
effective agency In the creation Of the
great trusts and monoUolies.
''If the prohibition Of the antitrust
act against combinations In restraint
Of trade n to be excessively enforced.
II is essential that the national govern
ment shall provide for vne creation OF
national corporations 10 carry on .
legitimate business throughout the
United States. The conflicting laws Of
the different states Of the Union with
respect to foreign corporations makes
IL di,seuit. " not impossible. for one
corporation to comply with their re-
quirements 30 ~ to carry on business
In . number Of different states"
Fsdsrs, Cooperation csmmIssIsn Pre-
poesd.
I do not set forth In detail the terms
and sections Of . statute which might
supply the constructive legislation psrmit-
ting and aiding the formation Of combine
lions Of capital into federal corporations
They should b subjsct to rigid rules -
to their organization and procedure. tn
Guiding effective publicity. and to the
closest supervision ~ to the issue Of
stock and bonds BY IN executive bureaus
or commission In the department. of
commerce and labor. to which In times OF
doubt they might we'll submit their pro
posed plans for future business. II must
be distinctly Understood that inc0spora-
ton under = federal Aw could not ex-
empt the company thus formed and Ne
incorporators and Manager from prose-
cution under the antitrust Law for sub
sequept Illegal conduct. but the publicity
Of its procedure and tho opportunity for
frequent consultation ~ to the legitimate
purpose Of Its transactions would offer
u ~ great security against successful
prosecutions for violations Of the Law
A. would be practical or wise.
Such Q bureau or commission might
well be invested also with the duty al
ready referred to. Of aiding the cosrts
In the dissolution and recreation Of trusts
within the law. II should BE- an sxecu-
tive tribunal Of the dignity and power Of
the comptroller Of the currency or the
Interstate commerce commission. which
now exercise supervisory power over In
yrortant c,asses Of corporations under ss1-
srsi regulation.
The drafting Of such . federal incorpor-
alton law would offer ample opportunity
20 prevent many manifest evils In cospor-
ate management today. including ire
sponsihiiity OF control In the hanAs q
the few who are not the real owners.
incorporation Voluntary.
] recommend that the federal chastsss
thus TO bs granted shall Be- voluntary. 81
least until experience tustihss mandatory
provisions. The bsne6t 10 b. derived
from ths operation Of great businesses
under the protection Of such Q charter
would attract all Who are anxious 10 kesD
within the iises Of the iaw. Other large
combinations that tail 10 take advaRea0s
az the federal incorporation will not have
Q right 10 cemplaia u thar failure =
ascsib~d TO unwiiiingnses 10 submit
their transactions 70 the careful scrutiny.
competent supervision and publicity a.
i~ndans upsa the sa3oymsat u sSch .
charter.
ovpplsmsWtsl lsssslatisW Mss1s1.
The oppo~sumisy thus suggested Tor ~.
erai Incorporated. u sssuns b ne. b ss1Ae-
able constructive lsgisiatton nee1ed 10 ~
ctlitats the sQuaStna Of greet Industrial