The advocate. [volume] (Charleston, W. Va.) 1901-1913, 1911-12-07

up association with other man
rfacturers. and, numerous kindred
meth DDS for sitting competition and
tenecttug monopoly. should be des-
crtbed with sufficient accuracy in a
criminal statute on the one hand to
enable the government to- shorten
1ts task by prosecuting single mis-
| oemeanors instead OF an entire con-
spfracy, and, ON, the other hand, to
serve the purpose Of pointing our
more In detail to the business com
munity what must be avoided.
Federal Incorporation Recon- 49,
! IT,. mended. ...-..--.... .,~
| r. In a special message to congress
on, January z, 1910, ventured to
point out the disturbance to bust
ness that would probablyaattend The
dissolution of these offending
trusts. said:
| But such an investigation and
possible. prosecution Of corporations
whose prosperity or destruction af-
fects the comfort not only. of stock
holders but millions Of wage earn-
ers, employees, and associated trades
men must necessarily tend to dis
turb the confidence Of the BUSINESS
community, to dry up the now flow
Ing sources Of capital from it's places
or .hoarding, and produce halt in
Jour present prosperity that will
cause suffering and strained circum-
stances among the innocent MANY
FOR the-faufts- of the guilty few.~The
question which T wish in this mes
sage to bring clearly to the. consfd-
Grafton and discussion of congress
us whether, In order to avoid such a
possible business danger, something
can not be done by which these bus
mess combinations may be offered d
means, without great financial dis
lturbance, of changing the character,
organization, and extent of their
business into one within the lines of
the law under Federal control and
|supervision, securing compliance
with the antitrust statute.
i Generally, in the industrial COM
binations called trusts the prin-
clpal business is the sale of goods
in many states and in foreign mar
kets; in other words, the Interstate
and foreign business far exceeds the
business done in any one state. This
tact viii justify the, Federal govern
ment in granting a Federal charter
20 such q combination to make and
sell in interstate and foreign COM
merce the products of useful manu-
facture under such limitations as
i will secure a compliance with the
antitrust law. 1t is possible so to
frame statute that while it offers
protection to a Federal company
against harmful, vexatious, and I'M
necessary invasion by the States, it
shall subject 1t to reasonable taxa
t1on and control by the states with
respect to. its purely local business.
Corporations organized .. under
this act should be prohi bfted from
acquiring and holding stock in
other corporations Except for spe-
fc1al reasons, and upon approval by
| the proper Federal authority, thus
iaVoiding the creation under national
; auspices of the holding company
with subordinate corporations in diff
I tereht states. which has been such
an effective agency in the creation
}of the, great trusts and monopolies.
| III the prohibition of the anti
trust act combinations in restraint
OF trade is to be effectively enforced,
/ it is essential that the National Gov
eminent shall provide for the crea-
ton of national corporations to car
| ry On legitimate business through
out the United Stateas. The con-
ficting laws of the different States
or the Union wit respect to foreign
i corporations make 1t difficult, If not
Dossibie,=for-one to
comply with their requirement so as
to carry on business in a number of
different States.''
= ] renew the recommendation of
the enactment of general law
providing for the voluntary forma-
ton Of corporations to engage in
TRADE and commerce among the
states and with foreign nations
Every argument which was then adj
Vanced for such a law, and every ex-
PLANTATION which was at that time Of
fered to possible objections, have
! been-confirmed- .by-our-- experience
tsince the enforcement Of the anti
TRUST statute has resulted in the ac-
tual dissolution Of active CONNER
cial organizations.
1T Is even more manifest now than
ut was then that the denunciation
Of conspiracies in retraint Of trade
should not and does not mean the
denial Of organizations large enough
Ito be entrusted with our interstate
and foreign trade. 1t has been
made more clear now than 1t was
then that a purely negative statute
like the antitrust law may we'll be
| supplemented by specific provisions
for the building up and regulation Of
| legitimate national and foreign COM