The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1911-12-09

the disturbance 10 business that would
probably attend the dissolution OF these
offending trusts. ] said:
.'But such IN investigation and pos
sible prosecution OF corporations whose
prosperity or destruction affects the
I comfort NOT only Of stockholders. but
% millions OF wage carriers. employees
md associated tradeSmen. must neces-
sarily tend to disturb the confidence
~ the business community. 10 dry mp
the now flowing sources OF capital
from its plnces of boarding and pro
duce hal' 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 20 bring clearly TO the con
sIderation and discussion OF congress
Is whether. IN order 10 avoid such
possible business danger something
cannot he done by which these bust
ness combinations may be offered a
means. without great financial dis.
turbance. of changing the character.
organization aud extent OF their bust
ness into one within the lines OF the
law under federal control and super
vision. securing compliance with the
antitrust statute
"Gencrally in the Industrial comhlna-
lions called trusts The principal hnsi
ness Is the sale Of goods in many states
and IA foreign markets-in other words
che 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 combination 10 make
and sell in interstate and foreign com
MERGE the products OF useful manufac-
ture under such limitations as will Sc
cure compliance with the antitrust
law Ii IL possible so To frame n stat.
ute that while IL offers protection TO u
federal company against harmful. vex-
atlous and unnecessary invasion by the
states. II shall subject it TO reasona.
BILE taxation and control by the states
with respect 10 it's 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
authority tlms avoiding the creation
under national auspices of the holding
company with subordinate corporations
In different states. which has been
such an effective agency in the crea.
ton ~ the great trusts and monopo.
lies
III the prohibition Of the antitrust
act against combinations In restraint
OF trade l. e. bc effectively enforced
IL IS essential TINT the national govern.
ment shall provide for the creation Of
national corporations 10 carry on lie
ultimate business throughout the Unit
ed States The conflicting laws OF the
different states OF the Union with re.
spect to foreign corporations make II
difficult. If not impossible. for one cor
poration 20 comply with their require
ments so as 20 carry on business In q
number Of different states"
renew the recommendation OF the
enactment OF a general law providing
for the voluntary formation Of cor
porations 20 engage In trade and com
MERGE among the states and with for
eign nations Every argument which
was then advanced for such law and
every explanation which was az that
time offered 20 possible objections has
been confirmed by our experience since
the enforcement OF the antitrust stat.
utp has resulted I'm the actual dissoln-
tiun Of active commercial organiza
touS
II is even more manifest now than
n was then that the denuuciation Of
couspiracics in restraint Of trade
should not and does not mean the de
Mil Of organizations large enough 10
be intrusted with our interstate and
foreign trade Ii has been made more
clear now tmn II 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 m.
tional and foreign commerce
Government, Administrative Experts
Needed TO Aid Courts IN Trust
Dissolutions.
The drafting of the DEGREES 81 the
dissolution Of the present trusts. with
q view 10 their reorganization into le-
ultimate corporations. has made IL cs.
lecially apparent that the courts are
not provided with the administrative
machinery 10 make the necessary In.
quiries preparatory 10 reorganization
or 20 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 dsintegrated parts. The
circuit couu 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.
tons.