Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-12-09
MESSAGE OF
THE PRESIDENT


clear now than II was then that Q
purely negative statute like the anti
trus. law NAV well be supplemented
By specific provisions for the building
~ 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
q view TO their reorganization into le-
climate corporations has made Il es
pecially apparent that the courts are
net 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-
oree In the tobacco trust dissolution by
an expert from the bureau OF corpora
tions.
Federal Cooperation Commission Pro-
posed.
do not set forth in detail the terms
and sections of statute which might
supply the constructive legislation per-
uniting 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
kcity. 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
wen 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 IL as great Sc
curity against successful prosecutions
for violations Of the law as would be
practical or wise.
Such 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 pow exercises supervis-
cry 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 irresponsibifity OF control in
the hands OF the few who are not the
real owners.
incorporation Voluntary.
recommend that the federal char
tiers thus to be granted shall be voiun-
tary, at least until experience justifies
mandatory provisions. The benefit to
be derived from the operation Of great
Businesses under the protection of such
q 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 right to
complain IL their failure is ascribed to
unwillingness to submit their transac-
tons 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 Ii must be enforced unless we
are to hanish individualism from all
business and reduce 1t 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 Anti trust Act.
The antitrust act il 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 I'M
controlled and unrestricted the enter
prise of the individual. his industry.
his ingenuity. his intelligence and bis
independent courage.
For twenty years or more this stat
ha~