New-York tribune., 1911-11-11
FOR FEDERAL LICENSES
Further Advocacy Of Proposed Plan to
Regulate Interstate Commerce.

ClIs iHS iIcSibfui u ilHhN ~
that II is easy TO say repesl the Sherman
Law but difficult to suggest substitute
which I'm any event would have TO stand the
test Of the courts. Proceeding on the as
sumption that the Sherman antitrust law is
desirable legislation and for that reason
should not be repealed, yet realizing on
the other hand that the effect ot the
Supreme Court decisions under II has beeh
such as 10 cast a shadow OH the business
methods of the country. plan Is herewith
suggested for the development OF schemo
OF legislation which may tend 10 soNe
the crux of the situation.
The American business man simply wants
10 know beyond the realm OF doupt
whether the particular business method he
is pursuing, or is desirous of pursuing. Tor
the extension Of his business and the IN
vestment of his capital is one that is
within the law He wants the fear that
1T any moment he may find himself con-
fronted with the process-servers oil tne
Department of Justice and the lying awake
nights listening for ominous sounds from
federal grand jury room to be dispelled'
incidentally the proposed scheme has the
merit Of killing two birds with one stone
with respect TO corporations liable to pay
the federal corporation tax, by putting IN
dlyldual and partnership competitors DONG
interstate business on the same plane as
TO governmental information ana contrlpu-
ton to governmental expense
Under the Constitution Congress mas
plensry power over interstate commerce.
II is through that arm of authority that
the proposed scheme which Is in the nature
OF an interstate commerce license act
is TO he exercised. The plan also does
away with the necessity Of federal In
corporatIon act and I'm no way tends TO eX-
tend national legislation into the proper
sphere of state jurisdiction.
As to the power Of Congress 20 regulate
commerce VIC have the broad definition oil
Chief Justice Marshall IN Gibbons aSt
ogden: 1t is the power 10 regulate that
is, TO prescribe the rule BY which commerce
is to be governed. This power, like all
others vested in Congress, IS complete III
itself, may be exercised TO its utmost cx-
tent and acknowledges no limitations
other than arc prescribed In the Constitu-
ton"
The fundamental idea OF the proposed
plan is to have all corporations, partner
ships and individuals engaged In inter
state commerce required to obtain federal
license for the doing of interstate business
corporations, partnerships and lndlVlduals
doing an annual interstate business OF less
than a fixed arbitrary sum should be
exempted from the license fee requirements
of the proposed act, so that the small con-
cern would In TO way be affected. AZ a
condition precedent 20 the issuance or the
federal license, the government shall deter
mine whether or not the corporation, part
nership or individual so applying Is con-
Quoting its business SO as TO constitute
violation OF the Sherman law; II in the
opinion of the authorities an applicant is
so conducting business, the license shall
be refused but the government shall state
the reasons for It's refusal I'm detail, speci-
fvinp the nature and manner In which 1t
claims the Sherman act is being violated
The decision of the government in deny
ing an application may be reviewed: pro-
vision to be made for mandamus proceed
iugs 10 compel the issuance OF license
IN a case where the applicant believes his
application has been improperly denied.
Therefore, IN a case whore there is a differ
cnce of opinion between the governmental
authorities and the applicant for the license
a mandamus proceeding will permit oil the
question being determined b. the courts.
An annual license fee based for instance,
uDon the total amount OF annual business
of the applicant shall be charged, and the
license shall he periodically renewed upon
the same terms and conditions as governed
H., original issuance: payment OF the an
nual license fee shall exempt a corporation
so paying from the federal corporation tax.
The government shall not prosecute,
under the Sherman act, any corporation
partnership or individual 10 whom ii has
granted an interstate commerce license
but shall be limited TO proceedings TO re-
woke the license; ana such Inhibition
against prosecution should apply during the
time the application is pending before the
government or before the courts OH the
maudamus proceeding. The Sherman law,
therefore. could then only be Invoked against
corporations, partnerships or individuals as
have not succeeded I'm obtaining a fed
eral license in the first instance or through
mandamus proceedilss. and such concerns
would be amenahs to the provisions of
the Sherman law. Holding companies. not
being concerns engaged In business OF in
terstatc commerce, would also still remain
amenable 10 the provisions of the Sherman
Law I'm case they were designed to per
petuate business inimical to the provisions
of that act Hence, the Sherman law
would serve its purpose in those cases for
which II vas designed to operate, including
contracts inter parties, without casting the
sb,dor of doubt on business enternrisss
generally.
By providing fines and penalties against
corporations, partnerships or individuals en-
gs ging in interstate commerce without a
federal license all concerns within the
puryiew ct the proposed act would readily
be brought within its operation. All fed
eral licensees would be required to make
reports to the government for the periodic
renewal Of tho license, and proceedings on
the part OF the government to revoke q
license might be brought at any time with
or without notice. When complaints are
made the government could require addi-
tional reports and investigate as to whether
the concern complained Of was operating
within the Jaw.
or course the foregoing plan IS only the
merest rough suggestion. but apparently
II is one which can be made thoroughly
practical and would serve tn imbue invest
ment capital which renewed spirit of
enterprise and remove the CRIME and dust
from the business machinery OF the coun-
try which have settled upon 1t by reason Of
the Sherman Law. MARTIN SANE.
New York, Nov Q, 1911.