Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1914-01-08
WASHINGTON LETTER
Observation-Disclosures
BY JOHN M. NELSON
Representative in Congress frpm the Thru
Wisconsin District
THE TWILIGHT ZONE.


Wisconsin District.
THE TWILIGHT ZONE.
Besides propositions to strengthen the
Sherman Law, group of proposals
seek to solve the trust problem through
the control of the state corporations
Thee aim to do away with the triplet
of corporate abuses: stock watering
interlOcking directorates, and holding
companies.
In seeking to deal with these great
corporate evils we find ourselves in the
twilight zone between state and nation
al powers. The states have the sole
right to create corporations. Congress
relies wholly on the commerce clause
of the constitution, ALREADY stretched to
the breaking point. The Knight case,
holding that the formation Of the Sugar
Trust was not directly an interference
with the interstate commerce, always
stares us in the face
The engine that is to strike down
these evils cannot work on ii miry
foundation. To prevent these evils we
must clear up the question of constitu-
tional power. There is no reason why
the federal government should take
away the right Of the states to deal
with their corporate creatures, except
as to evils with which they cannot cope
There should be clear and positive
power lodged in Congress to prevent
such evils.
To give Congress such powers, and
yet not to interfere with the great
body of the corporations doing bust
ness in the states, | have proposed an
amendment to the constitution, by
which congress is expressly given the
power ito define, prevent, and sup
press monOpolies, conspiracies, combin-
ations, and agreements in restraint of
trade
Some would erect the engine of fed |
eral incorporation or of federal regis
tration ard license, to deal with the
evils of monopoly
The first of these proposals is almost
certain to be lost in the mire of uncon-
sttutionality; and the last two are I'M
necessary. If congress has the power
to restrict these evils by refusing to
register or license, it has, also, the
power to prescribe these restrictions di
rectly in general law.
Can congress under the commerce |
clause reach stock watering? We can
not say until the Supreme Court has
spoken. Yet we cannot tolerate the !
tremendous burden which has been
placed upon the present and unborn
generations by the billions of dollars of
stock issued without a thing in the
world back of them except the monopo
ly privilege of taxing the American
people.
And conceding that the colrts will
hold that Congress may prohibit hold |
ing companies, and it's kindred evil of |
interlocking directorates, what good
will be accomplished When the SUI
preme court declared this holding COM
pany form of trust unlawful, the |
Standard oil company, with joint stock
ownership as before, simply became IA
% headed octopus. AS Long as the
courts sanction the common ownership !
of stocks prohibiting holding compan-
les and interI0Cking directorates will do
little good. The owners of the stock
will control all the % heads of the oc-
topus, and will only be put to the
trouble of electing dummy directors.
1t will not help matters to suppress
the evil in ors form and leave open
other ways of doing the same thing.
Congress must have power to deal with
the whole subject in its every aspect. |
am convinced, therefore, that we must !
pass constitutional amendment I
which, without interfering with state
corporations doing business honestly, /
will yet give the national government
the fullest possible power of destroying
these huge Frankensteins, which now
threaten the very lie of the nation.
JOHN NJ. NELSON.