The Birmingham age-herald., 1912-07-29

voluntary federal incorporation shall be provided for lesser organizations. me day has gone by when any niceties or his- torical policy should be permitted 10 blind us to the economic oblteraton or states lines.
 We recommend the establishment or an interstate commission of industry which shall have control over all corpora ri6ns operating under an United States charter This control shall be similar to that which is exercised by the interstate commerce commission over the railroad comuanies and shall insure the requisite publicity.
 ..Whenever the price charged by an United tSates corporation for one of us products shall have been found to be uh- reasonable by some competent authority to he determined hereafter. we recommend that 1t shall be the duty of the interstate ecmmjssicn of industry to make pubic declaration of the fact and to recommend nrice in lieu of that found unreason- able.
 Must Recapitalize Correctly
 eve recommend taat all corporations when they acquire an United States char ter snail be required to reeapitalize at an amount not to exceed the true value or their assets, In the valuation or their as sets we recommend that nothing be reck- oned for so-caled monopoly value, or value which arises merely from their eX- clugive ma rity or substantial control or the industry in which they are engaged. We recommend that interlocking direc- torates in United States corporations shall be forbidden except when licensed by the interstate commission of industry. eve recommend that so-called holding , co,npanies shall be forbidden except when licensed for temporary purposes or reor- yanization by the interstate commlssioh of industry. should the powers which we suggest prove insufficient to enable the interstate commission of industry to exercise a saiu- | tary control over unitea S,a.es 1o, i noratlons. we recommend that further leg I islatlon be enacted bestowing on the com mission a carefully guarded power to hN <, a maximum price in lieu of any price ad- .iudged to be unreasonable
 The minority admits that the last recom- mepdation will find disagreement among | both students of politics and economy.
 and anticipating this. the report says;
 New Situation Needs New Remedies | "We are fully alive to the fact that this I recommendation runs counter to the time honored doctrines of the greatest English l speaking political economists Of the past. It even runs counter to much historicai lexperlence Nevertheless, we are also
 
 of the past contemplated no situation sueh | as now confronts us, In this twentieth century combinations, international in their scope, have by their immense pre- ponderance of power distorted the opera ton of general economic laws.
 l After the most serious deliberation, with a profound consciousness that this I doctrine will offend many deep student of public aaffirs, with sincere hope that | such step may not prove necessary. 1 nevertheless 1t is our belief that we ought not to shrink from violating our tradi- Il tional policy If experience shall convince us that the trust problem cannot other- wise be met
 Representative H, o. Young of Michigan I in signing the report said that he be- I lieved the interstate commerce commission and the state railroad commissions are clothed with sufficient power to remedy all evils growing out of ownership of com | mon carriers by industrial corporations.
 .I am not conviVfd" says Mir. Young, | .that the power to.fix prices is necessary to the efficiency of federal control. Should
 exper.ence. however, demonstrate that l
 au, ,y.ong in tais conclusion. should