The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-12-09
THE wAToHMAN AND sOUTHRoN, DECEMBER O. ie11

probably attend the dissolution Of these
offending trusts said:
But such an investigation and pos.
. sible prosecution Of corpora tions whose
prosperity or destruction affects the
comfort not only Of stockholders, but
OF millions OF wage earners. employees
and associated tradesmen. must neces-
sartly 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 halt in our present prosperity
that VIII cause 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 and discussion Of congress
Is whether. in order to avoid such
| possible business danger. something
! cannot be done by which these busi-
ness combinations may. be offered
means. without great financial dis
turbance. OF changing the character.
organization and extent Of their busi-
ness into one 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 bust
ness Is the sale of goods in many states
| and In foreign markets-in other words,
the interstate and foreign business far
| o6C hn
state. This fact will justify the fed
eral government in granting federal
charter to such combination to make
and sell In interstate and foreign COM
merce the products Of useful manufac-
ture under such limitations as will Sc
cure compliance with the antitrust
law. 1t Is possible SO to frame stat
ute that. while 1t offers protection to a
federal company against harmful. vex-
at1ous and unnecessary invasion by the
states 1t shall subject it 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-
lies.
IF the prohibition Of the antitrust
act against combinations in restraint
Of trade is to be effectively enforced
1t Is essential that the national govern
ment shall provide for the creation CT
national corporations to carry on a le-
| gitimate business throughout the Unit
ed States. The conflicting laws of the
| different states of the Union With re-
spect to foreign corporations make it
difficult, If not impossible. for one cor
pOration to comply with their require
ments so as TO carry on business in q
number Of different states''
| | renew the recommendation OF the
enactment Of general law providing
for the voluntary formation of cor
porations TO engage In trade and com
merce among the states and with for
eign nations. Every argument which
was then advanced for such 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-
tiOns.
1t IS even more manifest now thG
1t was then that the denunciation of
conspiracies in restraint of trade
should not and does not mean the de-
| nial of organizations large enough to
| be intrusted with our 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 we'll be supplemented
by specific provisions for the building
up and regulation Of legitimate ma
tional and foreign commerce.
Government Administrative Experts
Needed to Aid Courts IN Trust
Dissoiutions.
The drafting Of the DEGREES in the
dissolution Of the present trusts. with
a view to their reorganization into le-
gitimate corporations. has made it es-
pecially apparent that the courts are
not provided with the administrative
machinery to make the necessary in
Qu1ries preparatory to reorganization
or to pursue such inquiries. and they
should be empowered 70 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
tions.