New-York tribune., 1911-01-16
WOULD EXTEND PUBLICITY
Commissioner of Corporations
Advocates National System.
RESULTS HAVE SURPRISED
Many Great Abuses Already
Checked by His Bureaus
Work, with Limited Facilities.

Washington. Jan. l5.-That publicity has
given Surprising results for the limited
number Of Industries and corporations
which his bureau could cover is declared
by Herbert Knox Smith. Commissioner 81
Corporations, in his annual report 10 Sec
retsry Nase OF the Department Of Com
merce and LABOR, which was made pubic
to-day.
The seven years experience ot the bu-
reau, Commissioner Smith says. has built
UP working system effective so Ear as
II goes, but still incomplete IN scope. Tbs
one step remaining 10 be taken is 10 Gro
ate by statute a system which shall apply
these effective methods TO all important
corporate businesses, and give recog
nized and permanent standing TO tho
proved principles. He adds:
In outline this system should be ono
where o. all important interstate industrial
corporations shall regularly make reports
I 10 a federal oitice; ~ where that oftce
! shall have the further right 20 verify such
! reports ana get additional facts; 90 where
/ business transactions Of public interest
! shall be made public, safeguarding az the
/ same time, as the bureau always has, all
properly private business secrets; "a where
/ there shall be permanent opportunity Tor
/ cooperation and adjustment between tne
! government and business interests; ana tO
whereby those corporations that deal fairly
and openly shall receive positive recogni-
/ ton Of that fact and correspondinsly ac-
quire public confidence The system must
/ be q national one. our great businesses
/ have become national in scope: they havs
+ no relation whatsoever 10 state lines.
/ This system will greatly extend the sans
/ kind Of corporate reform which has al
| ready resulted from the work OF rhe bu-
/ reau; the same kind OF public enlighten.
ment; it will tend toward the removal ot
IA ayA fFY1ff -
| corporate accounting, and the establish
ment OF industrial securities on basis or
open administration: Il will give central
! agency. Of financial and economic lntorrns-
ton and a practical meeting place for busl.
! ness interests with the government
It will do this without any drastic change
purely private affairs; with comparatively
/ small cost; with an effectiveness OF busi-
ness reform that no penal legislation can
ness eficiency. business honesty and com
I mercial service 70 the public, % the oeneht
! OF that increasing class OF modern business
men who are endeavorng 10 deal openly
and fairly and who regard their commercial
| power as at least in part public trust
Abolition Of Railway Determinations.
Reviewing the results OF the years work.
which he regards as the best argument for
corporate publicity, the Commissioners says,
in part:
In 1906 the bureau published report de-
scribing a great system or rallway ols, bs,
/ examinations enjoyed oy the Standard OF
! Company During the invesugaton, or
/ within six months thereafter, the raiiroads
/ concerned cancelled every rate which, the
report condemned as Illegal as Wen 81
many other criticised as inequitable:-
! Further reports published in 100, de-
| scribed the Standard Oil Company lts IN
yestment earnings and Pre1tlss Png,tsed NSs t5sf m sl
/ these publications caused q substantial I'M
! proveuent in the conduct Of the petroleum
Tesia5 fbA retaIiatory duty which had pre-
| Vented imports OF petroleum from the most
Important foreign producing nelds' and
! these reports were also largely 4Heu III
connection with that action
Taxation OF Corporations.
Two reports on the taxation Of corpora
tions in the New England and Middle ~,
iain respectively They have been largely
used nv public officials. committee OF the
Rhode Island LEGISLATURE, IN Us report
rTotes with approval from one OF the ol-
rss,I's -enorts and recommends legislation
i'm accordance herewith. The private use
was also very large. The InLStIatloudil ~, l - 80,
I Association, IN September. 1910. utEed tnt
early publication OF similar compilations o.
fLe laws Of other states and territories
relating 70 the same suhJect
"such." savs Commissioner Smith, in
summing I'D his report. have been the
practical results OF efficient publicity even
within the narrow range which the bureau
has baer able 10 cover. II can be extended
ro all important corporate business. OPP
pressive methods Of competition have been
reduced over wide areas; greater equality
of opportuuity Is being afforded; corporats
interests have become accustomed 10 q pup-
Irirv which they would nave regardeu as
rey0lutiouarv q decade ago. Many oil tnsnl
ars In fact cooperating by voluntarily
firnlsbirg much of the information 90
tained bv the bureau. The publc nas o..n
sriigbtened on many fundamental points
~ fnance and business which otnerNlSe
come to the ordinary citizen ohly ~, lu Las
nCspfarv and confused form; the tresidenL
and Congress have been given reliable ,';ts taGts
Eagrirg on economic questions OF puoDc
Dv,,,TrT Finally the effectiveness or SIM
rIs nIbIicIty and the resulting pubic con-
dannation of business abuses mas peen
nroved. In the case OF the rallWay uls-
Examinations cited above, mere puDilclty ac-
cnr1niisFed an abolition OF an eEll system
>, ifs entirety within six months, altnougn
c1rriroinaI prosecution Of certain paruclpahtss
therein has. after four years succeSpei
oriy in two cases out OF four.