Dewey County advocate. [volume] (Timber Lake, S.D.) 1910-1913, 1911-12-08

"a IN accomplish the purpose ~ and
a ciear path for honest lnere . 30 that |
BUSINESS men to follow. my sub |
such a plan will be evolved, Nv. been
NIT that the discussions winch ths tear
hroupht out in recent days ny .nti-
~ continued execution OF the III.
t-,,.t low have produced nothing uu' -.
terino eeneraiities and have one ton
line NJ distinction or rule OF acuon a.. On.
yite and as clear as that WHICH ~.
nreme court itself lays down III e"A
the statute. A..
SUPPLEMENTAL Legislation Neeoeo-
Repeal or Amendment.
see no objection-and indeed oa at
decided advantages-in the emu sanounce
a law which shall describe ana oe ,,nTair
methods of competition. wnicn :, rurpose
Announced ~ the antitrust law. inc
temnt and purpose to suppress connp IN
TOR nv underselling him at price ...s..
nrofltable as to drive him out OF uus' .,,,tr
or the making of exclusive cohtr0o0e ,,;rsd
customers under which they arc ranu.
70 give IN association with otnef me-"
facturers. and numerous kindred meInoe'
for sitting competition and enec.ne TT
nopoly. should be described Win ora
accuracy in a criminal statute on ~" hort.
hand to enable the government ~ .isde.
en- its task by prosecuting s'ns sr,racv.
and on the other hand. to serve the pul
pose Of pointing out more IN oetall ~ -
business community what must
avoided.
Federal incorporation Recommended
In q special message to congress ".
January Z, 1910, ventured to point ous
the disturbances to business that woulo
probably attend the dissolutio" Va
these OFFENDING trusts. said:
"But such an investigation ana pos-
sible prosecution Of corporations Whoss
prosperity or destruction anects 'ns
comfort not only Of stockholders out u
millions Of wage earners. empioyes
and associated tradesmen must hece
sarily tend to disturb the commence "
the business community. TO ory up .no
now flowing sources Of capital from lts
places OF boarding. and produce ha,,
in our present prosperity that Will
cause suffering and strained clrcun-
stances among the innocent many LUZ
the fault Of the guilty few. Ihe ques-
ton which l wish in this message 10
bring clearly to the consideration anu
discussion of congress is whether IN
order to avoid such possible business
Danger. something cannot be Done ny
which these business combinations may
be offered a means without great imam
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 su-
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 busi-
ness far exceeds the business done IN
any one state. This fact will justify
the federal government in granting
federal charter to such a combination
to make and sell in interstate and for
eign commerce the products OF useful
manufacture under such limitations as
will secure a compliance with the anti
trust law. 1t Is possible so to frame
a statute that while 1t 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 its 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 monopolies.
IF the prohibition Of the antitrust
act against combinations in restraint
Of trade IL to be effectively enforced
it is essential that the national govern
ment shall provide for the creation Of
national corporations to carry on a
legitimate business throughout the
United States. The conflicting laws Of
the different states OF the Union with
respect to foreign corporations makes
II dihcult. II not impossible. for one
corporation to comply with their re-
quirements SO as to carry on business
in a number Of different states"
Federal Corporation Commission Pro-
posed.
I do not set forth in detail the terms
and sections Of a statute which might
supply the constructive legislation permit
ting and aiding the formation of combina-
lions of capital into federal corporations.
They should be subject to rigid rules as
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 we'll 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 antitrust law for SUBJ
sequent Illegal conduct. but the publicity
Of its procedure and the opportunity for
frequent consultation as to the legitimate
purpose Of its transactions would offer
1t as great security against successful
prosecutions for violations Of the law
az would be practical or wiDe
Such a bureau or commission might
well be invested also with the duty al
ready referred to. of aiding the courts
in the dissolution and recreation of trusts
within the law. 1t should be an execu-
tive tribunal Of the dignity and power Of
the comptroller of the currency or the
Interstate commerce commission. which
now exercise supervisory power over i'm
portant classes Of corporations under fed