Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1911-12-07

Of American law has decree more 6.
Iectivs for such Q purpose been entseo1
by court than that against the T0bacco
trust
It has been assumed that the present
and common oWnsrship In al
these companies by FORMER stockhaldssD
Of the trust would insure Q, continuance
companies into which thss1trust has b.
decree bsen disinteEratsd. This 10 sF-
roneous and 10 based upon the assumed in
efficacy and innocuousness Of judicial ln-
functions. The companies are en30iAod
from cooperation or combination; they
have different managers. directors. pur-
chasing and sales agents. II all OF any
Of the numerous stockholders. reaching
into the thousands. attempt to secure
concerted action Of the companies with
view to the control Of the market, their
number 10 80 large that such IN attempt
could not well be concealed and Its prime
movers and all Its participants would DO
at once subject to contempt proceedings
and imprisonment of a summary charac-
ter. The immediate result Of the present
situation will necessarily be activity BY
all the companies under different man
ayers and then competition must follow.
or there will be activity by one company
and stagnation by another.
Cry for Repeal OF Law.
But now that the antitrust act 10 seen
to be effective for the accomplishment OF
the purpose of its enactment. we are met
by q cry from many different QuarterD
for its repeal. 1t is said to be obstructive
Of business progress. to be an satternptAto
restore old-fashioned: methods Of de-
structive competition between small units,
and to make impossible those useful COM
binations Of capital and the reduction Of
the cost of production that are essential
to continued prosperity and normal
growth. .,5gt sf sahza ass
In the recent decisions the Supreme
court makes clear that there IL nothing
in the statute which condemns combina-
tons of capital or mere bigness Of plant
organized to secure economy In produce
ton and reduction Of Its cost. It. is only
when the purpose or necessary effect ct
the organization and maintenance Of the
combination s,or the aggregaticn Of Inn
mense size are the sitting Of competition.
actual and potential, and the enhancing
of prices, and establishing q monopoly,
that the statute is violated.
For Federal Incorporation.
In special message to congress on
January Z, 1910, I ventured to point OUT
the disturbance to business that would
probably attend the dissolution Of
these offending trusts. said:
But such an investigation and pos
sible prosecution OF corporations whose
prosperity or destruction affects the
comfort not only OF stockholders but OF
millions Of wage earners. employees.
and associated tFadesmen must neceS-
sarily tend to disturb the confidence OF
the business community, TO dry up the
now flowing sources Of capital from it,
places Of boarding and produce halt
In our present prosperity that Will
cause suffering and strained ctrcum.
stances among the innocent many 10Y
the fault of the guilty few. The ques-
ton which I wish. in this message to
bring clearly to the consideration ana
discussion of congress is fwhether.s IL
order to avoid such a possible business
Danger, something cannot be done by
which these business combinations may
be offered means, without great fnan-
cial disturbance, Of changing the char"
acter, organization and extent of their
business into one within the lines OF
the law under federal control and SUI
pervision, securing compliance with the
antitrust statute.
Generally, in the industrial combi-
nations called Trusts the principal
business Is the sale Of goods In many
states and in foreign markets; In other
words, the Interstate and foreign bust-
ness far exceeds the business done In
any one state. This fact will justify
the federal government in granting q
federal charter to such a combination
to make and sell in interstate and for
eign commerce the products of useful
manufacture under such limitations al
will secure compliance with the anti
trust law. It is possible so to frame
a statute that while it offers protec-
ton to a federal company against
harmful, vexatious and unnecessary
invasion by the states 1t shall subject
it to reasonable taxation and control
by the states with respect to it's pure
ly local business.
"Corporations organized under this
act should be prohibited from acquir-
ing and holding stock in other corpora
tons Except for special reasons, upon
approval by the proper federal author.
ity), thus avoiding the creation under
national auspices of the holding COM
pany with subordinate corporations In
different states. which has been such an
effective agency in the creation OF the
great trusts and E1onopolies.
IF the prohibition Of the antitrust
act against combinations in restraint
of trade is to be effectively enforced.
!: is essential that the national govern
ment shall provide for the creation OF
national corporations to carry on a
United States. The conflicting laws OF
the different states OF the Union with
respect to foreign corporations makes
it di1scult. If not impossible, for ne
corporation to comply with their re-
quirements so as to carry on business
in number Of different states"
Federal Commission Proposed.
do not set forth in detail the terms
and sections of statute which might
supply the constructive legislation permit
ting and aiding the formation of combina-
tons of capital into federal corporations.
They should be subject to rigid rules az
to their organization and procedure. in
Guiding effective publicity, and to the
closest supervision as to the issue Of
stock and bonds by an executive bureau
or commission in the department Of
commerce and labor, to which in times Of
doubt they might well submit their pro-
posed plans for future business It must
be distinctly understood that incorpora-
ton under a federal law could not ex-
empt the company thus formed and its
incorporators and managers from prose-
cution under the anti trust law for sub
sequent Illegal conduct, but the publicity
Of it's procedure and the opportunity for
frequent consultation aa to the legitimata