The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-05-13
THE TRADE COMMISSION.



To THE EprroR OF THE srS--Sir: The
SUNS recent article on the cost. to the
consumer. OF the proposed interstate
trade commission 10 only one small item
Of the probable total.
The total yearly cost of this commits
sion, when Congress seems determined
to create. will amount to approximately
SIS. 000. 900. all OF which ultimately must
he paid by tho consumer.
There are about 900 corporations
which filed income tax reports. and after
deducting the 1900 national banks. 1900
State and savings banks. 5000 railroad
corporations under the Interstate Com
merce Commission. and making allowance
| for corporations which do no business
across any State line. It IL estimated that
| there are about 100000 corporations
which will be subject to this enormously
named "antt-trust BILL
The commission OF five men will have
many tasks One Is ITO investigate the
organization, business. financial condition,
conduct. management and It's relation to
| other corporations OF any corporation en-
gagged In commerce. If Il investigates
one corporation and makes Its report pub
lie. II ought in fairness to investigate all
and II II does not investigate all. then
| some guilty corporation may escape. Now
II ono examiner can investigate an aver
age of one corporation each week. he
| could look after Nifty a year That would
require 1000 examiners. They, being ex-
petts. would require salaries of at least
$4,000 a year. or a total OF $9,000,000 for
this item.
Each corporation must also file annual
reports Such reports TO be useful for
the purposes of the commission must be
very specific and include copies of all
trade agreements and contracts and he
under oath and certified by public ac-
would easily cost each corporation an
average OF $50 year, or total OF
&2?.5oo,Oo0 for this item.
These reports must all be indexed. filed.
analysed and compared for traces of pos
siblc shady stock issues baseless bonds,
d-relict directors and interlocklng inter
eats OF monopolist.c tendencies. This
would take large and very competent
Office force. The cost of tabulating and
publishing the 1910 census will be $500
600. - 1t IS safe TO say that this item Of
the operation Of the trade commission
will be at least t%.50O.OO0.
Every person who is a director In two
or more corporations carrying on "A com
petitive business must either resign or
file a petition with the commission, have
hearing and try TO get an order per-
hitting him to serve in both corpora-
tons To employ attorneys. attend hear
ings in Washington and get this proceed
ing through will cost on an average 5000.
and as probably 10000 such applications
will be made the first year. this item
would cost the corporations s6.00V.00o.
All holding companies must either
dissolve or within one year make appi-
cation for permission 10 continue bust
ness. such applications will entail tedious
hearings and exhaustive evidence taking.
and will easily cos; an average OF 5 Loo
10 the corporation There are probably
10000 such corporations and to carry
sDl these n hn
porations SO. 00O. 900.
To cap the climax. Section L. provides
that where stock Is to be issued for
property the commission shall Investigate
the value OF the property and issue a GER
tihcate before the stock can Ice issued
There are at least 1000 corpora tions or
ganized each year in the various states.
which contemplate engaging in commerce
and which buy some property with stock.
AL OF these would have to submit their
inventories and appraisas to the com
mission and probably have hearings and
offer evidence. The question % valu, of
good will" would be y Very troublesome
problem. and each ~ these proceedings
would undoubtedly cost the corporation
on an average Of 5000. or total OF Sc
100000
Incidentally. with al. these duties and
many others. the commission would soon
be years behind in "a work and Tho busl-
ness men would have 10 await their turn
for relief
or course this looks absurd. and IL GER
tnin'y Is. Nevertheless It is true. and IL
this ridiculous trade commission Is
formed with rs far reaching and Pre-
posterous powers. the ordinary citizen viii
have 10 pay this p.na,tv Tive benefits
derived will h" nothing except 10 the ON
p'oyces OF tho commission. who Will
nearly All be exempt from civil service
| requirements and only need n pull" 20