Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-12-05

authority. thus avoiding the creation
under national auspices of he 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-
Ultimate business throughout the Unit
ed States. The conflicting laws Of the
different states Of the Union with re-
| spect to foreign corporations make 1t
difficult, If not impossible, for one cor
poration to comply with their require
ments so as to carry on business in
number of different states"
I renew the recommendation Of the
| enactment 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 nations. Every argument which
was then advanced for such a 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-
tons.
1t is even more manifest now than
it was then that the denunciation of
conspiracies in restraint of trade
should not and does not mean the de-
NAL of organizations large enough to
be intrusted with our interstate and
foreign trade. 1t has been made more
clear now than 1t was then that a
purely negative statute like the anti
trust law may well be supplemented
by specific provisions for the building
up and regulation of legitimate ma
tional and foreign commerce.
GOVERNMENT EXPERTS NEEDED.
The drafting Of the DEGREES in the
dissolution of the present trusts. with
view to their reorganization into le-
ultimate corporations. has made it es-
pecially apparent that the courts are
not provided with 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 reorganiza-
ton of the disintegrated 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
! lions.
do not set forth in detail the terms
; and sections Of a statute which might
!, supply the constructive legislation per
: hitting and aiding the formation OF
: combinations of capital into fedora
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 al
executive bureau or commission in the
J department of commerce and labor. t.
which in times of doubt they NIGH
well submit their proposed plans fol
future business. 1t must be distinctly
understood that Incorporation under &
federal law could not exempt the com
T pany thus formed and its incorporation
and managers from prosecution unde
the antitrust law for subsequent II
legal conduct. but the publicity Of 1t,
procedure and the opportunity for FIRE
Quent consultation with the bureau o.
commission in charge of the incorpora
ton as to the legitimate purpose of IT.
transactions would offer 1t as great &c
rurity against successful prosecution
FOR violations OF the law as would bt
l practical or wise.
Such a bureau or commission nigh
well be invested also with the dut,
already referred to of aiding courts
In the dissolution and recreation O.
trusts within the law. 1t should be al
executive tribunal Of the dignity ant
power of the comptroller of the cur
rency or the interstate commerce com
mission. which now exercises supervis
DRY power over important classes o
: corporations under federal regulation.
The drafting of such a federal In
corporation law would offer ample op
Z portunity to prevent many NANTES