The Washington herald., 1911-12-06

trust law for subsequent Illegal conduct,
but the publicity OF its procedure and
the opportunity for frequent consultation
with the bureau or commission in charge
of the incorporation as to the legitimate
purpose of its transactions would offer
It as great security against successful
prosecutions for violations of the law as
would be practical OF wise.
Such a bureau or commission might
| Well be invested also with the duty al
! ready referred to. of aiding courts in
the dissolution and recreation of trusts
within the law. II should be an eXeCu-
tive tribunal of the dignity and power
of the Comptroller of the Currency or
! the Interstate Commerce Commission,
which now exercise supervisory power
over important classes of corporations
| under Federal regulation.
The drafting of such a Federal incor-
! pOratiOn law would offer ample Oppor-
! tUnity to prevent many manifest evils in
! corporate management to-day, including
! responsibility of control in the hands
Of the few who are not the real owners.
Incorporation Voluntary.
I recommend that the Federal charters
thus 10 be granted shall be voluntary,
at least until experience justifes manda-
| tory provisions. The benefit to be de-
| rived from the operation of great busi-
| nesses under the protection of such a
| charter would attract all who are anxious
| to keep within the lines of the law.
| Other large combinations that fail to
| take advantage of the Federal incOrpora-
| ton will not have a right to complain if
their failure Is ascribed to unwillingness
| to submit their transactions to the care
| full official scrutiny, competent super
vision, and publicity attendant upon the
enjoyment of such a charter.
Only Supplemental LegIsIatIon
Needed.
The opportunity thus suggested for
Federal incorporation, it seems to me, is
suitable constructive legislation needed to
facilitate the squaring of great industrial
enterprises to the rule of action laid
down by antitrust law This statute
as construed by the Supreme Court must
continue to be the line of distinction for
legitimate business. 1t must be enforced.
unless We are to Danish individualism
from all business and reduce 1t to one
common system of regulation or control
of prices. like that which now prevails
with respect to public utilities, and which
when applied to all business would be a
long step toward State socialism.
Importance of the Antitrust Act.
The antitrust act is the expression of
the effort of a freedom-Ioving people to
preserve equality of opportunity 1t is
the result of the confident determination
OF such people to maintain their fu-
ture growth by preserving uncontrolled
and unrestricted the enterprise of the in
dividual, his industry, his ingenuity, his
intelligence, and his independent courage
For twenty years or more this statute
has been upon the statute book All
knew its general purpose and approved.
Many of its violators were cynical over
its assumed impotence. 1t seemed i'm
possible of enforcement. Slowly the mills
OF the courts ground. and only gradually
did the majesty of the law assert itself.
Many of its statesmen-authors died be-
fore 1t became living force, and they
and others saw the evil grow which they
had hoped to destroy. Now its efficacy
Is seen; now its power is heavy; now
It's object Is near achievement Now we |
hear the call for its repeal on the plea |
that II interferes With business prosperity, /
and We are advised in most general /
terms, how by some other statute and /
In some other way the evil we are Just /
stamping out can be cured. II we only 1
abandon the work of twenty years and
try another experiment for another term
OF years.
1t is said that the act has not done
good Can this be ssl1 in the face of
the effect Of the Mort 1eru Securities de-
cree? That decree Was in no way so
drastic or inhibitIve in detail as either