Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1911-12-06

and the attorney general were great
ly aided In framing the decree In the
tobacco trust dissolution by an ex-
pert from the bureau Of corporations.
Federal Corporation Commission Pro-
posed.
do not set forth In detail the terms
and sections OF statute which might
supply the constructive legislation per-
hitting and aiding the formation of
combinations of capital into federal
corporations. They should be subject
to rigid rules as to their organization
and procedure. including effective pub
licity, and to the closest supervision as
to the Issue OF stock and bonds. by an
executive bureau or commission In tho
department Of commerce and labor, to
which in times of doubt they might
we'll submit their proposed plans for
future business. It must be distinctly
understood that Incorporation under a
federal law could not exempt the COM
pany thus formed and Its incorporators
and managers from prosecution under
the antitrust law for subsequent Tile
gal conduct, but the publicity OF it,
procedure and the opportunity for fire.
quent consultation with the bureau or
commission in charge OF the incorpora-
ton as to the legitimate purpose Of it,
transactions would offer It as great Sc
curity against successful prosecutions
for violations OF the law as would be
practical or wise.
Such 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 1t 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 today. In
Guiding responsibility Of control in
the hands OF the few who are not the
real owners.
sa.is& Incorporation voluntary.
I recommend that the federal char
tiers thus to be granted shall be volun-
tary, at least until experience justities
mandatory provisions. The benefit to
be derived from the operation Of great
businesses under the protection OF
such 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 fed
eral Incorporation will not have
right to complain II their failure 10
ascribed to unwillingness to submit
their transactions to the careful scru-
tiny, competent supervision and pub
licity attendant upon the enjoyment
OF such charter.
Supplemental Legislation 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 the antitrust
law. This, statute is construed by
the Supreme court must continue to
be the line OF distinction for legitt-
mate business. It must be enforced,
unless we are to Danish individualism
from all business and reduce it to one
common system Of regulation or con-
troll Of prices like that which now pre-
walls with respect ito public utilities,
and which when applied to all bust
ness would be long step toward state
socialism.
Importance Of the Antitrust Act.
81, The antitrust act is the expression
of the effort of freedom-loving peo-
pie to preserve equality Of opportun-
ity. 1t is the result OF the confident
determination OF such people to
maintain their future growth by pre-
serving uncontrolled and unrestricted
the enterprise Of the individual, his
ingenuity, his intelligence and his In
dependent courage.
For twenty years or more this stat
ute has been upon the statute book.
All knew of It's general purpose and
approved Many of its violators were
cynical over Its assumed impotence.
1t seemed impossible Of enforce
ment. Slowly the mills OF the courts
ground, and only gradually did the ma
jesty Of the law assert itself. Many
OF its statesmen-authors died before 1t
became living force. and they and
others saw the evil grow which they
had hoped to destroy. Now, its eff
cacy is seen; now Its power is heavy;
now its object Is near achievement.
Now we hear the call for its repeal on
the plea that 1t interferes with bust
ness 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, If we only abandon this work
of twenty years and try another ex-
pertinent for another term of years.
1t is said that the act has not done
good Can this be said In the face Of
the effect OF the Northern Securities
decree?
That decree was in no way so dras-
tic or inhibitive in detail as either the
Standard Oil decree or the tobacco de-
cree; but did 1t not stop for all time
the then powerful movement toward
the control of all the railroads Of the
country in a single hand?
Such one-man power could not
have been healthful instance In the
even though exercised under
the general supervision of an inter-
state commission.
Do we desire to make such ruthless
combinations and monopolies lawful?
When all energies are directed. not
toward the reduction OF the cost OF
production for the public benefit by
healthful competition, but toward new
ways and means for making perma-
nent In few hands the absolute con-
troll Of the conditions and prices pre-
vailing in the whole field OF industry,
then individual enterprise and effort
will be paralyzed and the spirit OF
commercial freedom will be dead.
WIN. H. TAFT.