Perth Amboy evening news., 1911-12-05

" sstft<HSUa VI WE#r #aEH8F2z &zAf#&4f]4&@
and associated tradesnnsn, must rscss-
sariIy tend to disturb the confidence
OF the business community, TO dry up
the now flowing sources of capital
from Its places Of boarding and pro-
duce a halt In II present prosperity
that will u Suffering and strained
circumstances among the innocent
many for the faults Of the guilty few.
The question which / wish In this
message to bring clearly to the con
sideration ana discussion of congress
IN whether. ia order to avoid such a
possible business danger. something
cannot be done by which these bust
ness combinations may be offered q
means. without great financial dis
~turbanee, OF changing the character,
organization aud extent of their bust
ness into a within the lines of the
law under federal control and super
vision, securing compliance with the
antitrust statute.
Generally In the industrial combina-
tons called 'trusts' the principal busi-
ness Is the sale Of goods in many states
and In foreign marksts-in other words,
the interstate aud foreign business far
exceeds the business done I'm any one
state. This. fact will justify the fed
srai government In granting a fedora,
charter to such a combination to make
and sell in interstate and foreign com
merce the products of useful manufac.
tv1xr ,.rHo~ ur,ob Hp,{tofion. 90 viii 90
cure a compliance with the antitrust
law. 1t is possible SO to frame a stat.
ute that, while 1t offers protection to a
federal company against harmful. yex.
atious and unnecessary invasion by the
states. 1t shall subject 1t to reasona-
Bile taxation and control by the states
with respect to its purely local busi;
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. thus 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 of the great trusts and monopo-
Hes.
sIf the prohibition of the antitrust
act against combinations In restraint
OF trade Is 30 be effectively enforced
It Ia essential that the national govern.
naent shall provide for the creation OF
national corporations to carry On . L.
climate business throughout the Unit
ID States The conflicting laws Of the
different states Of the Union with re-
apect to foreign corporations make II
d~i1acult, IL not Impossible. for one cor
poration To ce3Hply with their require.
nasnts 10 ~ to saxry or business In a
nxmber OF ainessMt statea."
I renew the Recommendation Of the
enactment Of q nsesraI law providing
for the voluntary formation of cor
porstions to engage IN trade and com
rnercs among the states and with for
efgn nations. Every argument which
was then advanced for such a law and
every explanation which was at that
time offered to possible objections has
been confirmed by our experience since
the enforcement of the antitrust stat
ute has resulted in the actual dissolu-
tion of active commercial ~organiza-
lions.
1t is even more manifest now than
1t was then that the denunciation of
conspiracies In restraint of trade
should not and does not mean the de-
niaI OF organizations large enough to
be intrusted with eur interstate and
foreign trade. 1t has been made more
clear now than 1t 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 ma
tionai and foreign commerce.
Government Administrative Experts
Needed to Aid Courts In Trust
D~issoiutions.
The drafting OF the DEGREES in the
dissolution of the present trusts, with
a view to their reorganization into le-
gitimate corporations, has made 1t es-
pecially apparent that the courts are
not provided with the administrative
machinery to make the necessary in
quiries preparatory to reorganization
or to 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 ~disintegrated parts. The
circuit court 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.
Federal Corporation Commission Pro-
posed.
l do not set forth In detail the terms
and sections Of q statute which might
supply the constructive legislation per-
hitting and aiding the formation of
combinations Of capital into federal
corporations. They should be subject
to rigid rules az to their organization
and procedure. including effective pub
lefty. 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 proposed plans for
future business. II must be distinctly
understood that incorporation under a
federal law could not exempt the COM
pany thus formed and Its incorporators
and mauaQ ars from p~rosecutfon under