Imperial Valley press., 1913-11-29
OR COMPETITION?
WE ARE NOW TO GET FACTS
BY Frederick NJ. kerby

By Frederick M. kerby
! Washington, Nov. 29.-"What we
must have for the ultimate and cor
rect solution are the facts"
That is the way Joseph E. Davies
of Wisconsin, President Wilson's new
commissioner of corporations, sums
up the question of "What to do with
the trusts?"
"This does not mean that congress
sional action is to be put off," he de-
clares. Certain facts are definitely
known and certain evils are very clear,
and congress will undoubtedly address
itself to these Immediately.
"But it is clear that one particular
object now is to see to it that the
competitive system is preserved. The
eggs are being scrambled so very fast
that if this condition be permitted to
continue we will find the greatest diff
Guilty in their unscrambling, even
though such a scrambled condition be
finally proved to be the greatest Of
evils.
Certain facts we do know now:
That stocks have been 'watered;' that
stock dividends have been declared
upon which dividends are again paid
without the corporation receiving val
ue; and that public must pay for the
products of such company in exorbi-
tant costs to pay dividends upon wa
ter that one of the most potent
agencies in creating monopoly and
raising prices lies in an interlocking
ownership and directorates.
at is generally recognized that
there should be some legislative def
milton, if that be possible, of what
constitutes reasonable or unreason-
able restraint of trade. These and
similar conditions are clearly defined
and known, and remedies will doubt
less be applied by congress in the
near future"
Commissioner Davies said that
whether or not congress sees fit to
amend or supplement the Sherman
law, or establish an interstate trade
commission, two fundamental things
remain to be done by some govern
mental agency-presumably the bu
reau of corporations.
First" he said, "some department
of government must obtain the facts
as to the present constitution of the
entire business world. Every corpora
ton doing an interstate busines:
should furnish to the government, fol
purposes of record, facts in the shape
of reports at stated intervals, showing
/ the amount and character of its stocl
issue; both the present real value OF
/ its assets and the real value of its
assets upon organization; the amount
of promotion stock issued; the amount
and character of bonds issued; the
kind and character of dividends de
clared; whether it holds stock in any
other corporations and directs theil
policies, or whether its stock is HEX
by some other corporation which di
rects it's policy; the names of the of
ficers and directors of the corporation
the names of other corporations IL
which its officers hold interests or OF
fee, directly or indirectly; and othel
facts which will disclose or tend tt
disclose what it has to earn dividendi
upon; and whether it is affiliated will
and controls or is controlled by othel
interlocking interests.
eve would then have the facts.
publicity itself is great correc
tive agency and deterrent. The bu
reau of corporations has the powe
in its organic act to do this work, IL
my judgment, and in the absence o
other action by congress looking t.
some other agency for doing thi
work, we would hope to address our
selves, if granted sufficient appropria
ton, to this task.
"Second, back of whatever may b
done now, there remains fundament
al problem, and that is-which form
of industrial organization, the monop
olistic or the competitive form, cal
produce articles the most cheaply con
sistent with other beneficial condition
to society.
"That is, society wants to kno,
whether the trust is really efficient"