Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-02-20
TRUSTS AN ISSUE
A CENTURY AGO
Newly Discovered Essay by
President of Madison Shows
His Views of Problem.

NEW YORK, Feb. 20.-That James
Madison, fourth President of the
United State one hundred years ago
urged the Importance of checking
monopoly and curbing the spread or
corporation control became known to-
CAY with the publication, in Harper
Magazine for March. of an hitherto
unpublished article by him. The ar
tjefe, which President Madison called
-Monopolies. Perpetuities, Corpora
tions Ecclesiastical EndOwments,
vas not included in the collection
called 1.-THE Madison Papers when
the government purchased from MIS-
Madison.
Gaillard Hunt. chief of the division
Of manuscripts in the Library OF Con
press. writes an introduction to the
Madison essay in Harper's Magazine,
In which he says:
Madison retired from the Presl-
dencv in 1877 and died in 1885, nine
teen years later This was the grow
ing period of American nationality
and it was during these years that an
enduring attachment was formed LOT
tho frame of government under when
the growth took place. So. as Madi-
son had been the master-builder OF
the government, he enjoyed eXtraordl-
nary prestige. and whatever he said
on public questions was regarded as
oracular. He felt the weight of the
responsibility and expressed his views
carefully. realizing that he was ad-
dressing posterity."
Madison's Own Words.
President Madison's essay contains
the following views on monopoly and
the means of checking 1t:
''Monopolies though in certain cases
useful ought to be granted with eau
ton. and guarded with Strictness
against abuse. The Constitution Of
the United States has limited them to
two cases-the authors of books, and
of useful inventions. in both VIII oh
they are considered as a compensa-
ton for a benefit actually gained to
the community as a purchase OF
property which the owner might
otherwise withhold from public use.
There can be no just objection to a
temporary monopoly in these cases;
but it ought to be temporary because
under that limitation a sufficient
recompence and announcement may
be given.
"'rhe limitation is particularly
proper in the case of inventions, be-
cause they grow SO much out of pre-
cedtng ones that there is the less
merit in the authors and because, for
the same reason. the discovery might
be expected in a short time from
other hands.
I'm all cases of monopoly, not lex
cepting those in favor of authors and
inventors, it would be well to re-
serve 10 the State a right to eXtin-
glIish the monopoly by paying a
kpecified and reasonable sum. Thisi
would guard against the public dis
contents resulting from the eXor
bitant gains of individuals, and from
the inconvenient restrictions COM
bined with them. This view of the
subject suggested the clause in the
bill relating to j. Rumsey in the Z
Virginia legislature in the year 1874, |
providing that the State might cancel
his privilege by paying him 100000.
The Bank Monopoly.
One objection to a bank is that it |
involves a qualified monopoly. and
the objection certainly has weight in
proportion to the degree and duration
OF the monopoly.
perpetual monopolies of every sort
are forbidden not only by the genius
of free governments, but by the i'm /
perfection of human foresight. /
(Anlong such monopolies cannot be in
cluded the grants in perpetuity Of
public lands to individuals, the grants
being made according to rules of i'm
partiality, for a valuable considera- /
ton; and all lands being held equally
by that tenure from the public, the
vital principle of monopoly is lost. |
The benefit is not confined to one or
q few. but is enjoyed by the whole
or a majority of the community.
"The evil of an excessive and dan (
gerous emulation of landed property
in the hands of individuals is best
precluded by the prohibition of en-
tails, by the suppression of the rights
of primogeniture and by the liability
of landed property to the payment of
debts. In countries where there is a
rapid increase of population, as in
the United States. these provisions
arc evidently sufficient; and in all
countries would probably be found
SOL Where charters Of incorpora
ton, even the common ones to towns
for the sake of local police, contain
clauses implying contracts, and ire
vocable, they are liable to objections
of equal force. The ordinary limita-