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

efficacy and innocuoNsne0D OF Judic1Al II.
functions. The companiss are en3oa1s1
from cooperation OF combinations fthey
have different managers. directors. pl1f-
chasing and SALES agents. N AL or 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 IL 30 large that such an attempt
could not well be concealed and its prime
movers and all its participants would b
ut once subject to contempt proceedings
and Imprisonment Of q summary chaE~c-
ter The immediate result Of the present
situation will necessarily DO 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 f@
Cry for Repeal OF Law.
But now that the antitrust act u sen
to be effective for the accomplishment OF
the purpose of its enactment, we are INST
for its repeal It Is said 10 be obstructive
of business progress. to be an attemptAto
restore old-fashioneds methods Of de-
structive competition between small units.
and to make impossibles those ussfNl com
binations Of capital and the reduction o1
the cost Of production that arc essential
to continued prosperity and normal
growth. .f.g.g{ s rs ,aF,g5z $h aF;is
In the recent decisions the Supreme
court makes clear that there 10 nothing
in the statute which, condemns combinar
tons of capital or mere bigness Of plant
organized to- secure economy In produce
ton and reduction Of its cost. Il is only!
when the purpose or necessary effect noS
the organization and maintenance OF the
combination hor the aggEesaticne of imT
mense size are the sitting Of competition.
actual and potential, and the enhancing
Of prices and 3estab lishinG3 imonopoly.
that the statute Is violated $500
For Federal incorporation.
In Especial message to congress on
January z, 1910. ! ventured to point OUT
the disturbance TO business that would
proba bly, attend z the dissolution 81
these offending trusts. I satd: III
But such an investigation and pos.
sible prosecution Of corporations whose
prosperity or destruction affects the
comfort not only, Of stockhold ers but Of
millions Of wage earnefs, employees.
and associated tradesmen must neces-
sarily tend to disturb the confidence OF
the business community. TO dry up the
now flowing sources Of capital from 10
places Of boarding. and produce hai ,s
in our present prosperity that Will
cause. suffering and strained ctrcum-
stances among the innocent many for
the fault OF sthe guilty few. The ques.
ton which wish in this message. TO
bring clearly to the consideration ana
discussion of congress 10 fwhether.efi II
order to avoid such a, possible. business
Danger, something cannot be done ~
which these business combinations may
be offered means, without great fnan-
cial disturbance, Of Changing the char
acter, Organisation 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.
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
federal charter to such a combination
to make and sell in Interstate and for
eign commerce the products Of useful
manufacture under such limitations az
will secure q compliance with the anti
trust law. 1t is possible SO to frame
a statute that while it offers protec-
ton to 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 thil
act should be prohibited from acQu1r.
ing and holding stock in other corpora.
tons except for special reasons, upon
ity), thus avoiding the creation under
national auspices of the holding com.
pany with subordinate corporations II
different states. which has been such al
effective agency in the creation of thu
great trusts and r1onopolies.
IF the prohibition Of the anti-trust
act against combinations in restraint
of trade Is to be effectively enforced
i: is essential that the national govern
ment shall provide for rne creation O.
national corporations to carry on {
legitimate business throughout tn,
United States. The conflicting laws o
the different states OF the Union will
respect to foreign corporations makes
it di1scult. II not impossible for nj
corporation to comply with their re
quirements 80 as to carry on business
in number Of different states"
Federal Commission Proposed.
do not set forth in detail the terms
and sections of a statute which Nigh
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 q
to their organization and procedure. in
Guiding efect1ve publicity, and TO IN
closest supervision as to the ISSUE o
stock and bonds by an executive bureau
or commission in the department o
commerce and labor, to which in times o
doubt they might well submit their pro
| posed plans for future business. It mus
be distinctly understood that incorpora
ton under federal law could not ex
empt the company thus formed and It
incorporators and managers from gprose
cution under the anti trust law for sub
sequent Illegal conduct. but the puhhcit
of its procedure and the opportunity 70
frequent consultation az to the ittmat
purpose Of its transactions would offe
it as great security against gsaocessfu
| prosecutions for violations Of the la,
2as would be practical or WISE
! recommend that the federal charter
| thus TO be granted shall be voluntary. a
least until experience Justices uandator
provisions. The benefit to b derive
from the operation Of, great businesse
under the protection Of such charte
would attract all who are anxious to kee
I within the lines of the, lave Other tlars
combinations that fail to take advantae
4 OF the FEDERAL tom Will not nav
right 70 complain Il e e i their failure 4
ascribed to unwillingness to subm,
their trAnsactionsrto 70 the careful ssfrutfnj
II ~,,novr,iuioyo 4