Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-07
FEDERAL REGULATION
Of BIG CORPORATIONS
Bill Introduced Creating Com.
mission Authorized to Is
sue Licenses.

bill creating an Industrial commits
sion and requiring all corporations hav-
ing capital of 81 .OOO, 900 or more to take
out q federal license was introduced in
the House today by Representative Mar
tin Of Colorado.
Federal License Required.
The bill requires that all corporations
having a capitalization Of 81 100000 or
more. engaging in Interstate and foreign
commerce. after january, 1913, must
first obtain a license from the Industrial
commission created by the proposed act.
An Industrial commission of five men,
bers is created in the Department of
Commerce and Labor, with equal dignity
and power regarding the control Of in
dustrial corporations as that held and
exercised by the interstate commerce
commission regarding common carriers.
The commissioners are to be appointed
by the President, with the advice and
consent of the Senate, and not more than
three commissioners can be appointed
from the same political party. Their term
OF office is to be six years, one commits
sioner vacating each year, and the salary
of the commissioners is to be $1,000 per
annum. They are given full power Of
investigation, to subpoena witnesses and
compel testimony, and in all respects to
consider and determine questions within
their Jurisdiction, with the same force
and effect as now exercised by the inter-
state commerce commission in matters OF
transportation. Although within the De-
partment of Commerce and Labor for
matters of convenience and to avoid du-
plication of work now authorized to be
done by the bureau Of corporations, the
industrial commission is. nevertheless, to
be an Independent body and will make its
reports direct to Congress.
Must Show Clean Bill.
Before a corporation can obtain a Ii
cense to engage In interstate and foreign
commerce 1t must show to the satisfac-
ton Of the commission that it is not over
capitalized and that it is not an unlawful
trust or combination in violation of the
anti-monopoly law. II after obtaining IL
cense the corporation shall violate the
provisions Of the antitrust laws of the
United States. this will work 8 forfeiture
of its right to engage in interstate COM
merce, which forfeiture must be enforced
by the federal courts see -
The commission Is given authority to
suspend the license of any corporation
If upon investigation and hearing 1t shall
reasonably capitalized or Is operating IN
violation Of the anti-monopoly laws
Penalty Provided.
1t is made misdemeanor for corpora
tions to engage in interstate commerce
either without a license or during the
suspension Of license, and for such of
Tense the corporation and it's officers may
be fined not to exceed 10000 and i'm
prisoned not to exceed one year. In case
Of continuing violation each day shall
be deemed separate offense.
Annual reports are required of each cor
poration engaging in interstate commerce.
covering such matters pertaining to their
operation. capitalization and business
methods as the industrial commission may
require. Special reports may also be re-
Quired from time to time by the commits
sion.
The bill does not propose a repeal or
modification of the Sherman antitrust
Law, but the regulation of the industrial
commission is to be in furtherance of the
anti-monopoly principles of the Sherman
law. The difficulty with the efforts to
enforce the antitrust laws by the courts
alone is that many years are consumed
before a monopoly can be brought to final
decree in the courts, and meantime the
people must pay a very large tribute on
fictitious stock by reason Of the monopo-
listic control Of prices. The purposes OF
this bill is to prevent the operations Of
monopoly at the beginninc and to ex-
clude unlawful combinations from taking
part in interstate commerce at all.