Evening star., 1938-01-04

have their own way. These figures
only prove the point made q little
while ago that the huge corporations
are in fact collectivist economic states.
For the purposes Of this discussion,
We may admit that they are eficient,
we may acknowledge the integrity and
good faith Of their management, but
when all Is said and done, they are not
private enterprises. They are public
enterprises with which free, independ-
ent, private enterprise cannot hope to
compete.
Year by year they have grown in
magnitude and importance. Year by
year they have absorbed competition.
Year by year their influence has ex-
panded from ocean to ocean and across
the sea. Some Of them are not only
richer and more powerful than many
OF the States In the Federal Union,
but than many Of the nations on the
globe.
Let no one interpret what say Is
An attack on business. It is not. It Is
merely an analysis Of condition
which must be understood If we are
even to make a beginning in the solu-
ton Of our present dilemma. Let me
assert here my own personal belief
that most Of the executives OF all
these corporations are men of good
will. In practically every one of them
you will find the positions Of author
ity Allied, for the most part. by men
who fought their way up from the
bottom without the aid Of money or
family. I rejoice In their success.
I'm proud Of their achievement. II
will not question their honor or their
patriotism. But that does not blind
me to the fact that the corporations
they represent dominate the economic
life Of the people Of America. 1 be-
lieve that these agencies and the hun
dreds Of thousands Of small corpora
tions which receive only IA per cent
Of all corporate income can be made
the instrumentalities by which pros
perity may be achieved for all our peo-
pie. But this know, the only way
by which that may be accomplished
Is by means Of Federal incorporation
law. Neither the big corporations nor
the little ones can thrive while 8,O00,-
900 to 100000 persons are unem-
ployed. Every business executive re-
alizes now that increased prosperity
depends upon increased consumption,
which In turn depends upon increased
purchasing power among the masses
We know now that this purchasing
power cannot be built up by Govern
ment deficit-spending. There is only
one way to do it, and that is by stimu-
lating free, independent, private en-
terprise.
Federal Law Is Needed.
The first step in this direction Is
the adoption OF national law which
will allow the Federal Government,
which has the duty Of regulating in
terstate commerce. rather than the
State government from which that
power was withdrawn. to write the
contracts which define the powers,
duties and responsibilities of inter-
state corporations.
But some one says such law would
increase the power Of the Federal bu-
reaucracy and increase Government
meddling In private business. It
would do nothing Of the Sort The
law have in mind like the Law rec
commended by Woodrow Wilson, would
not clothe any Government function
ary with discretionary power. Within
the four corners of the law would be
set forth clearly just what was re-
quired Of the corporation. Its virtue
would lie not In any new authority
granted to Government agents but in
closing the avenue-the loose State
charter-by which public responsible
ity has been evaded in the past. It
has been the lack of such law that
has caused the expansion OF bureau
cracy. Because . few States have
been willing to issue blanket charters
by which the prohibitions Of the Fed
eral antitrust laws could be avoided,
Congress has been forced to create
the vast establishment which now
overcrowds the city of Washington
Obviously If corporations did not have
the corporate power to commit the
abuses which have caused the people
to complain, 1t would not be necessary
to appoint an army Of supervisory and
prosecuting agents to keep them in
line.
A national incorporation law may
be drafted which can be as easily
enforced As the National Banking Act.
There was 4 time when there were no
national banks. All such institutions
were created by the State governments.
But when national commerce had
grown to such . point and the national
interest was such that it seemed neces-
sary, the National Banking Act was
passed. Who will now say that that
act was not a proper and normal result
of the growth of the country?
Corporations Dominate Field.
The same situation exists now with
respect to commerce and industry.
Fully 81 per cent Of the entire ma
tional income is produced by corpora-
tionS. The significance OF this fact
will be better realized when it Is re-
membered that "a pei cent Of al agri-
cultural activity is incorporate in
character. The corporation dominates
the field in finance, trade, transporta-
ton, public utility, manufacturing and
mining. The developments Of science
have been such, improving the means
Of transportation and communication.
that State lines have practically ceased
to exist commercially. Corporations
created In one State do business in
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