The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-31
The Constitution: u. S. A., Inc.
by TALCOTT POWELL

to incorporate, being careful, however, to retain
rigid control and the long end of the profits.
Tremendous drives to sell stock to the public
followed Some of the prospectuses would have
put bluessky promoter OF the nineteen-twentles
to shame One company declared that the IN
dams of Virginia used cooking utensils OF pure
gold and gave their children gems for toys Even
the clergy touted favorite securities from the
pulpit.
Massachusetts, Virginia, New York Delaware
and Georgia we're all originally colonized by cor
porations. The Massachusetts, Bay co. had five
separate stock issues with an involved system
of dividends and corporate structure nearly as
complex as that Of the insults. The artificial
person" was launched on his modern career.
DUT for centuries this legalstic device was
ID suspect. The right to use it was jealousy
guarded by the state. Chief Justice Marshall
thought that the creation Of a corporation
should be allowed only when its purpose was
definitely beneficial to the country"
In America many states fought a long and
losing battle against liberalization of the cor
porative scheme. Attempts were made to limit
the amount of capital it might hold. Missouri
the last state to abandon this method, gave it
up only in 1927.
Along with this effort at control there were
rigorous restrictions by some of the larger states
on the purposes for which a corporation might
be used. These restrictions fell when states
like Indiana and Delaware, greedy for tax rev.
enue, removed such safeguards in the granting
of cooperative charters.
The advantages of the corporation in provid
ing for collective business effort obvious, but
thinking people are beginning to question
whether the synthetic man" has not outgrown
or overreached his usefulness.
By using the corporation business has di-
vorced ownership from control. Rascals have
learned to use the vast tissue of corporate law
tn mr.
Last year 200 ncr-banking corporations con-
troled quarter of the national wealth and
were in turn dominated by only a handful of
directors.
Individuals are divided against themselves.
An officer of large corporation may, as g.
human being, have one set of ethics but as a
part of the synthetic man" he may have quite
different philosophy. Such an individual is
not necessarily hypocrite. He is merely one
person during business hours and some ore else
during the time ne spends with his family and
friends
The corporation idea has become cult like
the worship Of Baal or Nithra Its defenders
fanatically declare that those who take critical
attitude are assailing the profit system. This is
nonsense. The profit system existed for CEN
turtles before the cooperative device was i'm
agined.
Il VEN today great Titans of finance like the
II Norgans are organized not as corporations
but as partnerships in which every partner is
responsible to the last penny of his private re-
sources for his official acts.
Three modern nations with widely differing
political PHILOSOPHERS are attempting to grapple
with the problem Of this artificial man." Soviet
Russia has absorbed the corporation, made it an
integral part of the state. Fascist Italy is at
tempting to establish a cooperative state" in
which the government dominates corporate
policy.
The United States through the policies Of Mr.
Roosevelt, is apparently moving in the direction
OF gaining veto power over the corporation with
out assuming the power to initiate The Ad-
ministration wishes to be like football referee
who sees that the game is played according to
certain prearranged rules, but who does not
attempt to call the plays.
Whether the President succeeds or not is
dependent somewhat upon the ability of the con-
sentative mind to accept such a change. For
tunately the average American is resilient in his
thinking But it is we'll to remember that not
all revolutions are caused by the "have-nOts"
who wish to have. Oceans of blood have been
spilled because of futile efforts to maintain the
status quo for privileged class
Thus the present session of the Supreme
Court must not only adjust the Constitution to
the people, but it must seek to adjudcate the
wide differences existing between two classes OF
people: Those of flesh and blood and those who
are legalistic robots
Justice Louis D. Brandeis of the Supreme
Court has already foreshadowed his views when
he remarked last year, in his opinion in the
Florida Chain Store Case, that the movement
OF wealth toward concentration in corporation
Golfers was the negation of industrial democ-
racy."