Norwich bulletin., 1911-12-06

enable the government to shorten its task by prosecuting single misdemean- ors instead or an entire conspiracy and on the other hand to serve. the purpose Of pointing out more in derail to the business community what must be avoided
 Federal Incorporation Recommended.
 In a special message to congress on Jan- .. 1910. ventured to point out the disturbance to business that would probably attend the dissolution of these offending trusts. I said:
 But such an investigation and pos sible prosecution of corporations whose prosperity or destruction affects the comfort not only of stock holders. 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 hoarding and pro duce 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 1 wish in this message to bring clearly to the con sideration and discussion of congress is whether, in order to avoid such a possible business danger, something cannot be done by which these busi- ness combinations may be offered a means. without great financial dis turbance. of changing the character. organization and 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 fal exceeds the business done in any one state This fact will justify the fed eral government in granting a federal charter to such a combination to make and sell in interstate and foreign com merce the products of useful manufac- ture under such limitations as will se. cure a compliance with the antitrust law. It is possible so to frame stat ute that, while it offers protection to a federal company against harmful, vex atious and unnecessary invasion by the states, it shall subject it to reasona- ble taxation and control by the states with respect to it's purely local busi- ness.
 Corporations organized under this act should be prohibited from acquir ing and holding stock in other corpo ratons 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 an effective agency in the crea' ton of the great trusts and monopo- lies.
 If the prohibition of the antitrust act against combinations in restraint of trade is to be effectively enforced it is essential that the national govern ment shall provide for the creation of national corporations to carry on le- gitimate business throughout the Unit ed States. The conflicting laws of the different states of the Union with re- spect to foreign corporations make it difficult. if not impossible, for one cor
  ments so as to carry on business in a number of different states"
 I renew the recommendation of the ena ctment of a general law providing for the voluntary formation of cor porations to engage in trade and com merce among the states and with for eign ati0ns. Every argument which was then advanced for such & law and every explanation which was at that time offered to possible objections has been confirmed by our experience since the enforcement of the antitrust stat ute has resulted in the actual dissolu- ton of active commercial organiza- -ions
 It is even more manifest now than t was then that the denunciation of in restraint of trade should not and does not mean the de- 1ial of organizations large enough to De intrusted with our interstate and i 'oreign trade. It has been made more | Hear now than 1t was then that a purely negative statute like the anti- l rust law may well be supplemented ! y specific provisions for the building | ID and regulation of legitimate na- I ional and foreign commerce.
 Government Administrative Experts |
 Needed to Aid Courts in Trust
 DissoIutions-
 The drafting of the decrees in the dissolution of the present trusts, with
 view to their reorganization into le- sftimate corporations, has made it es- 'ecially apparent that the courts are Iot provided with the administrative nachinary to make the necessary in- uiries preparatory to reorganization r to pursue such inquiries, and they hould be empowered to invoke the i'd of the bureau of corporations in etermining the suita ble reorganiza- ion of the disintegrated parts The ircuit court and the attorney general 7ers greatly aided in framing the de rec in the tobaccostrust dissolution by n expert from the bureau of corpora- ons.
 ederaI cerperstien Commission Pro-
 posed
 do not set fortfs in ,desaii the terms nd sections of a -sta<nte which might x,xsfv fhn EoS