The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-23


nuircction."' STANDARD Sanitary Man
ifacturing Company, " l.. s.. 80 &. s.,
20 4yD
In the face of this history how can
II be said with accuracy that the busi-
ness of the country Is suffering because
IL cannot obtain further and more eX-
plicit legislative definition of the policy
and meaning of the existing antitrust
law?
1.-THE President, however. considers
the time ripe for additional legislation.
Fortunately he says. mo measures OF
sweeping ar novel change are neces-
sary.' Thcrcupon he recommends the
passage Of
"DD Laws to prohibit and prevent I'M
terlockings of the personnel Of the d.
rectorates of great corporations, banks
and railroads. Industrial commercial
and public service bodies.
"l2) \ law comforting on the inter-
state Commerce Commission the power
to supcr,ntcnd and regulate the finan-
cial operations 10y which railroads are
henceforth to he supplied with the
money they need for their proper de-
velopment, &c.
Wilson Would DEFINE Monopoly.
"t3) a law explicitly and item by
item forbldding things which expert
cncc has shown have resulted in re-
straint of trade and effort at monopoly
in such terms as will practically elm
mate uncertainty, the law itself and the
penalty being made equally plain
"(I) The creation of an Interstate
Trade Commission, which is apparently
to be a sort of clearing house for in
formation aud publicity. and also tn act
in the dissolution Of unlawful combina-
tons and which is also to give the busi-
ness men OF the country definite guid-
ance and information. but when snail
not he empowered TO make terms with
monopoly or in any sort To assume con-
troll Of business as if the Government
made itself responsible.
",5) \ law imposing penalties not
upon corporations nor necessarily upon
officers of corporations, but upon those
individuals at whose command or upon
whose initiative acts are done by cor
porations In violation of the sherman
and the new antitrust laws. tThe
general conspiracy statutes ana the
laws against accessories To crime would
seem to meet this case without need OF
any new lcgislation)
"t6) a law prohibiting holding COM
panies.
80 Some law whereby one who owns
stock in two or more competitive cor
porations may " compelled to vote as
stakeholder in but one OF them: ana
"ts) \ law providing that Judgment
against all unlawful combination at the
suit of the Government shall be avail
able to any private litigant suing for
damages by reason of the unlawful acts
4. nd no hsa
OF limitations shall not run against him,
except from the date Of the recovery OF
such Judgment.
"These are the suggestions Of which
the President says. Fortunately, no
measures of sweeping or novel change
are necessary
Back "a HamiltOm Theory.
alexander Hamilton. who first
formulated the doctrine of the implied
mowers of the Federal Government, for
more than "A century bas been the OBJ
iect of systematic attack by members OF
the Democratic party. although only by
the consistent application OF his theory
Of implying from the express grant OF
enumerated powers to Congress In the
Constitution such additional powers as
were necessary to carry out those ex-
pressly granted has the national Gov
eminent been enabled effectively to
meet and solve the national problems
arising with our expanding growth ana
progress. But Hamilton himself would
long have hesitated to present a pro-
Rramme of Federal legislation such as
our Democratic President submits to a
Congress largely controlled by Southern
Democrats, involving the enactment OF
laws prohibiting any individual to be at
once q director In State rai'~oad cor
poration, and In a bank or banking IN
etitution, State or national, and IN an
Industrial corporation organized under
q State law, or in any two OF such cor
porations; prohibiting one state corpo-
ration to hold stock in another and re-
stricting the right Of a citizen to vote
shares OF stock owned by him in one
State corporation because he also owns
that Of another State corporation which
may be competitive in its business Win
the first.
I'm all OF these cases the Presidents
suggestions deal with corporations or
xanizcd under State laws, and he pro-
poses that the Federal Government
shall, by legislation, exercise control
over their corporate powers. the per-
sonnet of their officers and stockholders,
and the exercise by the stockholders OF
their voting rights.
Constitutionality Doubted.
"What Emile Faguet calls LHorreu'
De Ia Responsablite' seems TO restrain
the President from recommending tn
adoption by Congress of a law for TN
incorporation of companies to engage II
Interstate commerce. As part OF sucl
n law all of the provisions suggested by
the President might be enacted. but. con
sdercd as Independent legislation, II Ger
tainly Is open to serious doubt whethe
an act of Congress would be const'tu
tional which should undertake to resu'
late the stock ownership and interna
management Of State corporations in IN
manner suggested by the President.
THE regulation of stock and bond IL
sues by interstate railroad companie
was first recommended by the RepuDl
can national platform OF 1905 and Wa
embodied also In President Tafts mes
sage to Congress in 1910 and again IL
December 1911. Provisions designed q
carry out these recommendations were
embodied in the railroad bill of 1910, bu
because of the great colnpexity result
ing from endcavorng SO 10 frame legts
lation for the future as not to impair tn
NaIue ,f enormous issues of stock an,