The Calumet news., 1911-12-05


determining the suitable reorganiza-
ton of the dislnteTated parts. The
4 circuit court and the attorney general
were greatly aided in framing the de-
cree I'm the tobacco trust dissolution by
an expert from the bureau OF corpora
tions.
Federal Corporation Commission Pro-
posed.
| do not set forth IN detail the terms
and sections OF statute which might
supply the constructive legislation per-
mitting 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
10 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. IL must be distinctly
understood that incorporation under q
federal law could not exempt the COM
pany thus formed and fits incorporators
and managers from prosecution under
the antitrust law for subsequent H.
legal conduct. but the publicity of its
procedure and the opportunity for fre-
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 Sc
curity against successful prosecutions
for violations Of the law as would be
practical or wise.
Such n bureau or commission might
well be invested also with the duty
already referred to Of aiding courts
In the dissolution and recreation of
trusts within the law. 1t should be 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-
ory power over important classes OF
corporations under federal regulation.
The drafting Of such a federal in
corporation law would offer ample OPP
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.
recommend that the federal char
ters thus to be granted shall be volun-
tary. at least until experience justifies
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-
tions to the careful official scrutiny.
competent supervision and publicity
attendant upon the enjoyment OF such
n charter.
Only Supplemental Legislation Needed.
The opportunity thus suggested for
federal incorporation, IL 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 busi-
ness. 1t must be enforced unless we
are to Danish individualism from all
business and reduce it to one common
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 Ant-t trust Act.
The antitrust act is the expression
of the effort of q freedom loving peo-
pie to preserve equality Of opportunity.
1t is the result of the confident deter
mination of such 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.
1t seemed impossible of enforcement.
Slowly the mills OF the courts ground.
and only gradually did the majesty of
the law assert itself Many of its
statesmen-authors died before II be
came a living force, and they and 9th.
ers saw the evil grow which they had
hoped to destroy. Now It's efficacy Is
seen: now its power is heavy; now its
object is near achievement Now we
hear the call for its repeal on the plea
that II interferes with business pros.
perity. and we are advised in most
general terms how by some other stat
ute and in some other way the evil
we are just stamping out can be cured
II we only abandon this work of twen.
ty years and try another experiment
for another term OF years.
IL is said that the act has not done
good. Can this be said in the face OF
the effect of the Northern Securities
decree? That decree was In no way
so drastic or inhibitive in detail as Of
ther the Standard Oil decree or the
tobacco decree. But did It not stoI
for all time the then powerful move