The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1911-12-08


init that the discussions which have been
brought out in recent days by the fear
OF the continued execution OF the anti
trust law have produced nothing but gilt
tering generalities and have offered no
line OF distinction or rule OF action as den
mite and as clear as that which the SUI
preme court itself lays down In enforcing
the statute.
Supplemental Legislation Needed-Nos
Repeal or Amendment.
I see no objection-and indeed can see
decided advantages-in the enactment OF
a law which shall describe and denounce
methods OF competition. which are untar
and are badges OF the unlawful purpose
denounced In the antitrust law. The at
tempt and purpose TO suppress compeu-
tor by underselling him at price so un-
profitable as 20 drive him out OF business
or the making OF exclusive contracts WIN
customers under which they are required
TO give up association with other manu-
facturers and numerous kindred methods
for sitting competition and effecting mo-
nopoly. should be described with sutncient
accuracy in a criminal statute on the one
hand 10 enable the government 10 snort
en- its task by prosecuting single mlsoe-
meanors instead OF an entire conspiracy,
and. on the other hand. 20 serve the pur-
pose OF pointing out more In detail TO the
business community what must De
avoided.
Federal Incorporation Recommended.
In a special message TO congress on
January I. 1910. ventured 10 point OUT
the disturbance 10 business that would
probably attend the dissolution OF
these offending trusts l said:
But such an investigation and pos
sible prosecution OF corporations whose
prosperity or destruction affects the
NJ ~ holders
millions OF wage earners. employees.
and associated tradesmen must neces-
sarily tend 10 disturb the confidence OF
the business community. 20 dry up the
now flowing sources OF capital from It's
places OF boarding. and produce halt
In our present prosperity that VIII
cause suffering and strained circum-
stances among the Innocent many for
the fault OF the guilty few. The ques-
tion which | wish in this message TO
bring clearly 10 the consideration ana
discussion OF congress IN whether. In
order TO avoid such "A possible business
dauger, something cannot be done py
which these business combinations may
be offered "A means without great imam
cial disturbance. OF changing the char
acter, organization and extent or their
business into one within the lines or
the law federal control and SUI
pervision. securing compliance with the
antitrust statute.
Generally. I'm the Industrial combi-
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 busi-
ness far exceeds the business done In
any one state. This fact will justify
the federal government in granting n
federal charter TO such combination
20 make and sell In Interstate and for
eign commerce the products or useful
manufacture under such limitations as
will secure a compliance with the anti
trust law. II is possible so TO frame
"A statute that while II offers protec-
tion TO federal company against
harmful. vexatious and unnecessary
invasion by the states. II shall subject
it 10 reasonable taxation and control
by the states with respect TO It's pure
ly local business.
Corporations organized under this
act should he prohibited from acquir-
ing and holding stock In other corpora
tions Except for special reasons upon
approval ny the proper federal author
ity), thus avoiding the creation under
national auspices OF the holding com
pany with subordinate corporations In
different states. which has been such An
effective agency In the creation OF the
great trusts and monopolies.
III the prohibition OF the antitrust
act against combinations in restraint
OF trade is TO be effectively enforced.
Il IS essential that the national govern
ment shall provide for tne creation OF
national corporations TO carry on "A
legitimate business throughout the
United States. The conflicting laws of
the different states or the Union with
respect TO foreign corporations makes
II dihcult II not impossible. for one
corporation 10 comply with their re-
quirements so as 10 carry on business
in number Of different states"
Federal Corporation Commission Pro
posed.
7 do not set forth In detail the terms
and sections OF "A statute which might
supply the constructive legislation permit
ting and aiding the formation OF cOmbina-
tlons OF capital into federal corporations.
They should be subject 70 rigid rules as
10 their organization and procedure. In
Guiding effective publicity and 90 the
closest supervision as 20 the issue ~
stock and bonds by an executive bureau
or commission I'm the department OF
commerce and labor. 20 which in timos Of
doubt they might we'll submit their pro-
posed plans for future business. II must
be distinctly understood that incorpOrt-
ton under a federal law could not exc
emut the company thus formed and rs
incorporators and managers from prose-
rutiou under the antitrust law for SUBJ
scquedt Illegal conduct. but the publicity
OF its procedure and the opportunity Tor
frequent consultation as 90 the legitimate
purpose Of its transactions would Off"r
u as great security against successful
prosecutions for violations 81 the law
as would be practical or wise.
Such a bureau or commission might
well be Invested also with The duty a'-
ready referred TO- OF aiding the courts
iu the dissolution and recreation % trusts
within the law. 10 should be an eE"ra-
tive tribunal 81 the dignity and power o.
the comptroller OF the currency or ths
interstate commerce commission. which
now exercise supervisory power over inn
portant classes of corporations under fed
eraI regulation.
The drafting Of such a federal irc1rp0r-
alton law would offer ample opportunity
90 prevent many manifest evils in corpgr-
Ate management today. including ire
spons.bIIlty Of control ln tho. hands %
the few who are not the real owners.
Incorporation Voluntary.
T recommend that the federal charters
thus 20 b. granted shall BE- vOluuffrv. AZ