Polk County observer. (Monmouth, Polk County, Or.) 1888-1927, 1911-12-05

probably attend the dissolution OF tnese
offending trusts. said
"But such an investigation and pos
sible prosecution of corporations whose
prosperity or destruction affects the
comfort not only of stockholders, Dus
of millions of wage earners, employees
and associated tradesmen, must neces-
sarilv tend to disturb the confidence
of the business community, to dry up
the now flowing sources OF capltal
from its places of boarding 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 ] 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 bus1-
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 far
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 Sc
cure a compliance with the antitrust
law. 1t is possible so to frame stat
ute that, while it offers protection to
federal company against harmful, vex-
atious and unnecessary invasion by the
states, it shall subject it to reaSona-
bic taxation and control by the states
with respect to its purely local bust
ness.
Corporations organized under this
act should be prohibited from acquir-
ing and holding stock in other corpO-
rations Except for special reasons,
upon approval by the proper federal
thus avoiding the creation
under national auspices of the holding
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
If trade is to be effectively enforced |
t is essential that the national govern
nent shall provide for the creation of |
national corporations to carry on le-
Ultimate business throughout the Unit
ID States. The conflicting laws Of the |
lifferent states of the Union with re-
;pect to foreign corporations make it
litiicult, if not impossible, for one cor
JOl bllOll W NOblDlS WIN luNAl iCAuilN~
nents so as to carry on business in
lumber Of different states"
l renew the recommendation of the
enactment of a general law providing
or the voluntary formation Of cor
)orations to engage in trade and com
nerce among the states and with for
ign nations. Every argument which
vas then advanced for such a law and
very explanation which was at that
ime offered to possible objections has
'een confirmed by our experience since
he enforcement of the antitrust stat
te has resulted in the actual dissolu-
ion Of active commercial organiza-
IONS
1t is even more manifest now than
was then that the denunciation of
in restraint Of trade
hould not and does not mean the de-
ial Of organizations large enough to
e intrusted with our interstate and
Dreign trade. 1t has been made more
lear now than it was then that
urely negative statute like the anti
'ust law may well be supplemented
Y specific provisions for the building
p and regulation of legitimate ma
onal and foreign commerce.
oVernment Administrative Experts
Needed to Aid Courts In Trust
Dissolutions.
The drafting of the decrees in the {
ssolution Of the present trusts. with :
view to their reorganization into le- ,
innate corporations, has made it es-
ecially apparent that the courts are I
)t provided with the administrative ,
achinery to make the necessary in 7
liries preparatory TO reorganization I
to pursue such inquiries. and they '
iould be empowered to invoke the I
d Of the bureau of corporations in '
'termining the suitable reorganiza- c
'n Of the disintegrated parts. The
rcuit court and the attorney general
ere greatly aided I'm framing the de-
ee in the tobacco trust dissolution bv
expert from the bureau OF corpora.