The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-12-05
an expert from the bureau of corpora

an expert from the bureau or corpora
tons.
Federal Corporation Commission Pro.
posed.
do not set forth In detail the terms
supply the constructive legislation per-
hitting and aiding the formation of
combinations Of capital into federal
corporations. They should be subject
to rigid rules as to their organization
and procedure. including effective pub
licity, 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. 1t must be distinctly
understood that Incorporation under a
federal law could not exempt the COM
pany thus formed and its incorporators
and managers from prosecution under
the antitrust law for subsequent H.
legal conduct. but the publicity of its
procedure and the opportunity for fire.
quent consultation with the bureau or
commission in charge Of the incorpora-
ton as to the legitimate purpose of its
transactions would offer it as great &C.
curity against successful prosecutions
for violations of the law as would be
practical or wise.
Such a, bureau or commission might
we'll be invested also with the duty
already referred to Of aiding courts
in the dissolution and recreation of
trusts within thea law It Should se-an
executive tribunal of the dignity and
power Of the comptroller Of the cur
rency or the interstate commerce COM
mission. which now exercises supervis-
DRY power over important classes Of
corporations under federal regulation.
The drafting of such a federal in
corporation law would offer ample OBJ
portunity to prevent many manifest
evils in corporate management today,
including responsibility Of control in
the hands of the few who are not the
real owners.
incorporation Voluntary.
I recommend that the federal char
tiers thus to be granted shall be volun-
tary. at least until experience justi6es
mandatory provisions. The benefit to
be derived from the operation Of great
businesses under the protection Of such
charter would attract all who are
anxious to keep within the lines Of the
law. Other large combinations that
fail to take advantage Of the federal
incorporation will not have a right to
complain If their failure is ascribed to
unwillingness to submit their transac-
lions to the careful official scrutiny,
competent supervision and publicity
attendant upon the enjoyment Of such
charter.
Only Supplemental Legislation Needed
The opportunity thus suggested for
federal incorporation, it seems to me
is suitable constructive legislation
needed to facilitate the squaring of
great industrial enterprises to the rule
Of action laid down by the antitrust
law. This statute as construed by the
supreme court must continue to be the
line Of distinction for legitimate bust.
ness. 1t must be enforced unless we
are to Danish individualism from all
OuSAASoS anu kCuuNS IL W OAc SOA1uOIl
system of regulation or control OF
prices like that which now prevails
with respect to public utilities and
which when applied to all business
would be long step toward state so.
cialism.
Importance Of the Anti trust Act.
The antitrust act is the expression
of the effort Of freedom loving peo-
pie to preserve equality OF opportunity.
1t is the result Of the confident deter
mination OF such a people to maintain
their future growth by preserving un-
controlled and unrestricted the enter.
prise OF the individual. his industry.
his ingenuity. his intelligence and his
independent courage
For twenty years or more this stat
ute has been upon the statute book.
All knew its general purpose and ap-
proved Many Of its violators were
cynical over its assumed impotence.