The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-12

Of Representative Hutchinson (North
Dakota) for the regulation Of cold stor-
age warehouses probably would be un-
CONSTITUTIONAL
The bill Is modelled on the State laws
Of New Jersey prohibiting n long period
OF storage, which was referred to by
President Wilson in his recent address
- Congress as n means of bringing
Down present prices. Mr. Morrill,
thought that while such a law could be
enforced as q State law Congress would
not have authority to enact such a
Federal law except as IL applies to 'inter-
state commerce. This would not be
effective. he said. because it could be
evaded by establishing branch storage
warehouses in the respective States over
which. In case the food was shipped only
within that State, the Federal Govern
ment would have no Jurisdiction.
Houston's Delay Criticised.
The testimony Of Mr.. Morrill, also re-
voaled that while the present prices have
been in force for several months the
Department of. Agriculture has framed
no definite plan for meeting the situation.
but IL hoping to present one within a
couple Of weeks This delay was criti-
cised severely by Chairman Haugen
(Iowa) and Representative Tincher
(Kan.).
Mr.. Morrill, suggested his belief the
most feasible plan to force food out Of
storage would be for Congress to use
It's taxing power. placing taxes on food
according to the time above a certain
period-about eight months-it Is kept
In storage and indicated that the De-
partment bill will be along those lines.
Bills to provide such taxation already
have been introduced In the House.
Chairman Haugen indicated to-day
that the House committee will not neces-
sarily extend the Lever food control act
after the proclamation Of peace, as the
president suggested. but rather will in
corporate new act embodying all pow
<ers necessary to control prohteering In
food supplies.
THE President has all the power he
needs to control foodstuffs and bring
prices down." said Mr.. Haugen. "and
there should be no haste in extending the
food control act until after peace Is de-
clared, at which time a new law should
be passed"
The House Judiciary Committee will
meet tomorrow to consider bills carry-
ina out the Presidents request for the
stamping of the cost price on all COM
modities and the creation of a board to
investigate capital issues before these
oAo cu W Iio pupho.
Senate Committee Named.
The Senate Committee on Interstate
Commerce authorized Chairman Cum
minis to-day to name a subcommittee Of
five to consider all recommendations in
the Presidents address. which fall in the
jurisdiction OF the committee. He
named Senators Townsend (Mich. y,
chairman; La Toilette (wis), Watson
Ond.). Underwood (Ala) and Smith Is.
CO. The subcommittee will meet early
this week and begin work.
Senator Kellogg's bill providing for
Federal licensing OF all great corpora
tons engaged in interstate commerce Is
designed as q means to bring them under
Federal control with the purpose of reg
ulating prices. In explaining his bill
Senataor Kellogg said:
Some years ago, after the prosecu-
ton of the Standard OIL Company BY
the Government, became convinced that
other means were necessary to regulate
trusts and combinations in restraint of
trade. At that time 1 prepared a bill
embodying some of my Views, but moth
ing was ever done with II. / since have
revised 1t, and I now submit IL to the
consideration Of the Congress as a sug-
gestion.
I'm view Of present conditions, ] think
/ should wish to make some amendments
and changes in II, but these can be
considered by committee.
'The bill requires all corporations en-
gagged in interstate commerce and hav-
ing capital or assets OF $10.00O,0 900 or
over, to take out Federal license, and
provides that when the license is issued
by the Federal Trade Commission, such
corporation shall be presumed to be a
legal corporation and shall have the right
20 engagein interstate and foreign
-e~lilIii~- &c., uIiess The license Is revoked,
as provided in the bill.
Forfeiture Provided For.
1T further provides for a forfeiture
OF the license IL the corporation shall
enter into any contract, combination or
conspiracy in restraint Of trade or shall
monopolize commerce, or attempt to
monopolize it This would give the
commission a supervisory Jurisdiction
over the corporations, and their license
would be subject to forfeiture II they
engage in a combination to raise or fix
prices. engage In unfair methods OF
competition for the sake of crushing out
their competitors, or any OF the other
abuses which have been in the past
commonly employed to monopolize COM
merce.
1T may be that $4,000 900 is ex-
-cessive and that smaller t.rporations
should be covered by the Bal 1t was
my view at the time prepared this bill
that the danger of monopolization of
commerce arose with regard to those
large corporations having business all
over the country capable of exerting
their power
ut is my opinion that prosecution
under the present antitrust act is not
sufficient remedy. There should be de-
partment of the Government having
power of supervision, not necessarily in
terfering with the business of the coun-
try, but possessing the power to investi-
gate, publish facts, and take immediate
action to revoke license II corpora
ton abuses Its power. With this power
in the Federal Government, there will be
less likelihood Of price fixing agreements.
The bill provides, however, the license
10 forfeited, the corporation may pro-
tect its rights in the courts.
Vagueness in Present Law.
II would not give to any executive
board of the Government the absolute
power to bar a corporation from en-
gaging In interstate commerce. On the
other hand, under the present law, many
corporations do not know whether or
not they are lawfully transacting bust
ness or whether they are legally Or
ganized. Lawyers and courts differ on
the subject. They should be licensed
and know whether their business is law
full In fact, as this bill provides, they
should have the right to apply to the
commission and have It determined in
advance whether any proposed action 10