Evening journal., 1911-12-05

the disturbance 10 business that would
probably attend the dissolution of these
offending trusts. said;
"But such an investigation and pos
sible prosecution Of corporations whose
prosperity or destruction affects the
comfort not only Of stockholders. but
Of millions OF wage earners. employees
and associated tradesmen. must neces-
sarily tend to disturb the confidence
OF the business commp'ity. 60 dry up
the now flowing sotHces OF capital
from it's places of boarding and pro-
duce halt In our present prosperity
that will cause suffering and strained
! circumstances among the innocent
many for the faults Of the guilty few.
The question which | wish in this
message to bring clearly TO the con-
slderation and discussion Of congress
Is whether. in order 10 avoid such a
possible business danger. something
cannot be done by which these busi-
ness combinations may be offered a
means. without great financial dis
turbance. OF changing the character.
organization and extent OF their bust
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-
tions called trusts the principal bust
ness is the sale Of goods In many states
and in foreign markets-in other words.
the interstate and foreign business far
exceeds the business done I'm any one
state This fact will Justify the fed
eral government in granting a federal
charter 10 such a combination TO make
and sell in interstate and foreign com
merce the products OF useful manufac-
ture under such limitations as viii So
cure a compliance with the antitrust
law. It is possible so to frame a stat
ute that. while It offers protection 10 a
federal company against harmful, vex-
atious and unnecessary invasion by the
states. It shall subject It TO reasona-
bic taxation and control by the states
with respect to its purely local busl-
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.
q IF the prohibition OF the antitrust
r act against combinations in restraint
l. OF trade is TO be effectively enforced
Z it is essential that the national govern
!. ment shall provide for the creation o.
national corporations to carry on a le
climate business throughout the Unit
ed States. The conflicting laws Of tbs
different states OF the Union with re
e spect to foreign corporations make Il
difficult. II not impossible, for one cor
! poration to comply with their require
{ ments so as to carry on business in a
, number OF different states"
/ renew the recommendation OF tho
enactment OF a general law providing
for the voluntary formation OF cor
porations 10 engage I'm trade and COM
3 merce among the states and with for.
eign nations. Every argument which
was then advanced for such a law and
Q every explanation which was at that
5 time offered 20 possible objections has
Q been confirmed by our experience since
j the enforcement OF the antitrust stat
? ute has resulted in the actual dissolu-
4 ton Of active commercial organiza-
tions
3 It is even moro manifest now than
g it was then that the denunciation OF
{ conspiracies in restraint OF trade
e should not and does not mean the de-
/, NAL of organizations large enough to
e be intrusted with our interstate and
foreign trade. IL has been made more
d clear now than II was then that a
b purely negative statute like the anti
J trust law may we'll be supplemented
p by specific provisions for the building
? up and regulation Of legitimate ma
I tional and foreign commerce.
Government Administrative Experts
Needed 10 Aid Courts In Trust
Dissolutions.
Inc u Ahl hlNANNo Al AhN
s dissolution OF the present trusts, with
q a view to their reorganization into le-
e gltimate corporations. has made It es-
= peclally apparent that the courts are
{ not provided with the administrative
o machinery 70 make the necessary in
l. quiries preparatory to reorganization
n or to pursue such inquiries. and they
+ should be empowered TO invoke the
y aid Of the bureau of corporations in
& determining the suitable reorganiza-
e ton Of the disintegrated parts. The
j. circuit court and the attorney general
l. were greatly aided in framing the de
i cree in the tobacco trust dissolution by
an expert from the bureau of corpora
4 tons.
Federal Corporation Commission Pro-
n posed.
L do not set forth In detail the terms
e and sections of a statute which might
u supply the constructive legislation per
e hitting and aiding the formation Of
e combinations Of capital into federal
r corporations. They should be subject
l. to rigid rules as TO their organization
l. and procedure. including effective pub
u licity. and TO the closest supervision as
n to the issue Of stock and bonds by an
p executive bureau or commission in the
J. department OF commerce and labor. TO