Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1911-12-14

.oreign markets; In other words, the in
terstate and foreign business far exceeds
sne BUSINESS done in any one state. THIS
IN granting u federal charter to such a
combination to make and SELL in interstate
ana ioreign the products OF
useful manufacture under such limita-
tons as will secure a compliance with the
antitrust law. 1t Is possible SO to frame
. statute That while it offers protection to
atious. and unnecessary invasion by the
states. 1t shall subject 1t to reasonable
taxation and control by the states with
respect TO It's purely local business. . . .
Corporations organized under this act
snould be prohibited from acquiring and
hoIalns stock In other corporations lex
espe sor SPECIAL reasons. upon approval by
inc proper federal authority. thus avoid
ing the creation under national auspices
OF the holding company with subordinate
corporations in different states. which
mas been such an effective agency In the
lies.
IT the prohibition OF the antitrust act
against combinations in restraint of trade
- 10 DO effectively enforced. It IL essen
tia that the national government shall
provide for the creation OF national cor
ness throughout the United States. The
conflicting laws OF the different states of
the union with respect to foreign corpor-
atoms make 1t difficult, II not impossible.
requirements so as to carry on business
In a number of different states"
i renew the recommendation OF the
enactment OF a general law providing for
the voluntary formation of corporations to
engage In trade and commerce among the
SLATE, ra..a,a and ,, %;fh foreign NATIONS; Every cry
such q Law. and every explanation which
was at that time offered to possible OBJ
5%ections. nave been confirmed by our ex-
pertence since the enforcement Of the
antitrust statute has resulted in the act
ual dissolution of active commercial Or
CARNATIONS.
1t is even more manifest now than it
was then that the denunciation of con-
spiracics in restraint OF trade should not
and does not mean the denial of organ
izations large enough to be intrusted with
our Interstate and foreign trade. 1t has
been made moro clear now than It was
then that a purely negative statute "
the antt-trust law may well be- supple
nented by specific provisions for the
building up and regulation of legitimate
national and foreign commerce.
Courts Need Aid.
The drafting of the DEGREES in the disso-
luton of the present trusts, with n view
to their reorganization into legitimate cor
porations. has made It especially appar-
ent thst the courts are not provided with
the administrative machinery to make
the necessary inquiries preparatory to re-
organization, or TO pursue such inquiries,
and they should be empowered to invoke
the aid of the bureau of corporations in
the suitable reorganization OF
the disintegrated parts. The circuit court
md the attorney general were greatly
aided In framing the decree in the to-
bacco trust dissolution by an expert from
the bureau OF corporations.
Corporation Commission Proposed.
l do not set forth in detail tho terms and
sections of a statute which might supply
the constructive legislation permitting and
aiding the form alton of combinations OF
capital into federal corporations. They
should be subject to rigid rules as to their
organization and procedure. including pub
LEFTY, and to the closest supervision as to
the issue of stock and bonds by an eXecu-
tive bureau on commission in the depart
ment of and labor, to which in
times of doubt they might we'll submit
their proposed plans for future business.
corporation under a federal law could not
exempt the company thus formed and
IT'S incorporators and managers from
subsequent illegal conduct, but tho pub
licity of its procedure and the opportunity
FOR FREQUENT consultation with the bureau
or commission in charge of the incorpora-
ton as to the legitimate purpose of its
transactions would offer it as great Sc
curity against successful prosecutions for
violations of the law as would be practical
or wise.
Such a bureau or commission might well
be invested also with the duty already
ieieifed 70, OF alalnS courts IN the DISCO
tuition and RECREATION OF fruits within the
law. 1t should be an executive tribunal
OF the dignity and power Of the comp
.tToller OF the currency or the Interstate
Commerce commission, which now exer-
Csc supervisory power over important
classes of corporations under federal regu-
lation.
The drafting of such n federal incorpora-
ton law would offer ample opportunity to
prevent many manifest evils In corporate
~mnnagement today. including irresponsi-
bility of control in the hands of the few
who are not the real owners.
Incorporation Voluntary.
I recommend that the federal charters
thus to be granted shall be voluntary. at
least until experience justifes mandatory
provisions. The benefit to be derived from
the operation of great businesses under
attract all who are anxious to keep with
In the lines of the law. Other large COM
binat.ons that fail to take advantage Of
the federal incorporation will not rave q
right to complain II their failure is as
cribed to u~nwtllingness to submit their
transactions to the careful official scrut-
my, competent supervision and publicity
attendant upon the enjoyment of such q
charter.
Importance Of the Act.
The antitrust act Is the expression Of
the effort OF a freedom-loving people to
preserve equality Of opportunity. 1t is the
result OF the confident determination of
such a people to maintain their future
growth by preserving uncontrolled and UNI
restricted the enterprise of the individual.
his industry. his ingenuity. his intelli-
gence. and his Independent courage.
For 20 years or more this statute Is
been upon the statute book. All knew Its
general purpose and approved. Many OF
1 SuIlCQ lmQOt0nCe. 1T seemed i'm.