The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-21
Commissioner Of Corporations
in Annual Report Asks
Widening Of Work.
BUREAU Is 10 YEARS OLD
Resale Price Maintenance and
Trust Questions Being
Investigated.

WAshiNoToN. reO sO-I no annual re-
port Of Joseph Z. Davies, Conmis sioner Of
Corporations. to the Secretary Of Com
rherce for the fiscal year ended June go
1913. was issued to-day. The last an
nual report was issued on February 49,
1913, and In certain respects covers, In
addition to the fiscal year ended June
20. 1912. the period between July I. 1912.
and February H. 1913. AS the bureau
completed the first ten years of its ex-
istence ON February II. 1919. the report
In some respects covers this additional
period.
THE question OF n fixed price for the
sesale Of commodities that 10, the liking
by manufacturer or jobber with regard
70 the commodities which ne deals in OF
The prices at which retailers must sell
such articles, is "A problem which Is at
tracing much public attention." says the
report. Some OF the legal questions con-
nected with this practice have been de-
termined By the courts. but the question
81 the economic advantages or disad-
vsntages of this practice have never been
Investigated By the Government Tha
bureau has Initiated = comprehensive
inquiry with regard TO this subject
Each State has its distinctive laws
regarding the admission to the State Of
corporations organized In other States or
countries. and their subsequent operationa
This has resulted In . wide divergence In
the legal prerequisites for and conditions
pertaining to the doing OF business In the
various States with respect to corporations
whose business is of an Interstate char
acter. which has often seriously hampered
and restricted the conduct Of business.
These AFFECT. for example. the rights OF
lien AMI other contract rights OF such
corporations
THE penalties imposed for technical
hilure to comply with such prerequs ties
ana other legal conditions are, In many
Instances. drastic and severe. The actual
money lost by corporations due to unwit-
ting violations OF the laws Of different
States il undoubtedly very large
THE bureau is engaged in a study OF
tho laws of the various States on this
subject. with view to making recon-
mendations as to the best means employed
BY the States in the regulation of foreign
corporations. and with = view to coopsrat-
ing with State legislative committees. II
desired. in the modification OF such laws,
to the end Of obtaining greater uniformity
therein.
with a view to providing useful ma
terirl in connection with proposed lsgis-
lAfior regarding trusts and corpora tons
and methods OF competition the bureau
has been making a study Of existing legis-
iatfon and proposed reforms and rs,nsdi les.
zone VI the alleged advantages claimed
~ monopoly. BY which IL 10 argued that
monopoly In Justified as an ultimate fact
IN industrial evolution. Ia the alleged
greater cheapness Ut its production. Tho
question is whether the trust form OF or
SANITATION Is really efficient. II is the
plan of the bureau to investigate this
question.
"Of almost equal Importance Is that OF
the price policy Of such large industrial
combinations as have achieved "A eubstan-
t!ol control OF the market. Those who
aliego that such industrial enterprises re-
suit IN greater economy and efficiency in
production often overlook the equally i'm
portant question whether or not they alb
sorb all the benefits OF such economies in
increased profits without conceding any
share thereof to labor In higher wages
or TO consumers In relatively lower prices
or improved quality Of goods, &C.
Both the necessities Ut the Government
IN the regulation Of interstate commerce
and the Reasonable requirements OF indi-
vtduals regarding Information ~ to the
anairs OF particular corporations, Usake Il
desirable that some governmental agency
should 90 provided with the power and
duty To obtain and keep as "A public record
certain facts with refer To AssociA-
lions and corporations which are engag ed
II Interstate commerce. This Is especially
necessary with regard TO tho larger COM
paniss.
Returns should be made annually by
such corporations in manner prescribed
by the Government, and, In connection
with the first anual return, additional in
formation regarding the original organi-
satfon. capitalization and physical val
uation OF the property Of the corporation
mtGht be REQUIRED. together with the
aEn0unts Of stock or other consideration
paid to promoters or underwriters
While there are we'll known facts and
conditions which require immediate leSis-
lat!ve consideration. Az, for example, a.
TO tnterlockinx direct0rates, holding COM
pa0.ts and definitions as to what shall
constitute unfair competition and re-
streint OF trade or monopoly. YET a care.
ful analysis and coordination Of such in.
formation would throw much light upon
Industrial conditions and would be Of
great value TO the President, to Congress
and to the public in the determination Of
further governmental policy"