The Julesburg grit-advocate., 1911-12-14

the disturbance 10 business that would
probably attend the dissolution OF these
Offending trusts. ] said:
~But such an investigation and pos
s1bie 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 community. TO dry up
the now flowing sources OF capital
from its places OF boarding and pro-
duce n 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
sitleration and discussion OF congress
Is whether. in order TO avoid such 4
possible business danger. something
cannot be done by which these bust
ness combinations may be offered
means. without great financial dis
turbance. Of changing the character.
organization md extent of their busi-
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 busi-
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 in any one
state. This fact will justify the fed
cral government in granting federal
charter to such combination to make
and sell in interstate and foreign COM
merce the products of useful manufac-
ture under such limitations as will Sc
cure n compliance with the antitrust
law. 1t Is possible so to fame a stat
ute that. while it offers protection to
federal company against harmful. vex
atious and unnecessary invasion by the
states. it shall subject 1t to reasona-
BILE taxation and control by the states
with respect to its purely local busi-
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 IN effective agency In the crca
ton OF the great trusts and monopo
lies.
III the prohibition OF the antitrust
act against combinations in restraint
Of trade is 10 be effectively enforced
1t is cSScrtla, that tie national govern
nent shall provide for the creation Of
national corporations TO carry on a le-
gitimate business throughout the Unit
ed States The conflicting laws OF the
different states of the Union with re-
spcct tu foreign corporations make 1t
difficult, II not impossible, for cue cor.
poration 10 comply with their require
mcntS so as to carry on business in II
number of different states"
I renew the recommcI lation of the
nactment Of general law providing
for the voluntary formation OF cor
porationS TO engage in trade and com
mcrcr among the states aud with for
eign nations. Every argument which
was then advanced for such u law and
every explanation which was 1T that
time offered to possible objections has
been confirmed by our experience since
the enforcement Of the antitrust stat
utt has resulted in the nctua! dis>olu
ton OF active commercial urganiza
tionS.
1t is even more manifest now than
it was then that til" denuuciation Of
conSpiracicS in restraint Of trade
should not and does not mean the de
nial of organizations large enough to
be intrustcd with our interstate and
foreign trade. 1t has been made more
clear now than 1t was then that 4
purely negative statute like the anti.
trust law may well he supplemented
by specific provisions for the building
up and regulation Of legitimate u;,-
tional and foreign commerce.
Government Administrative Experts
Needed to Aid Courts In Trust
oissoiutions.
The drafting of the DEGREES in the
dissolution OF the present trusts. with
n view to their reorganization into lc-
gitimate corporations. has made it es-
pccial!y apparent that the courts are
not provided Will, 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 reorsauiza-
ton OF the disintcgrated parts. The
circuit court and the attorney general
were greatly aided in framing the de-
cree in the tobacco trust dissolution by
an expert from the bureau of corpora
tions.
Federal Corooratioo Csnriss;on Dee