Evening star., 1938-01-04
CORPORAT|ONCURB
IS HELD ESSENTIAL.
0'Mahoney Cites Need for
Control to Preserve Free
Competition.

Competition.
The following address on ways Of
curbing trusts and monopolies was de-
livered last night by Senator Joseph c.
OMahoney, Democrat, OF wyoming,
speaking on the National Radio Fo-
rum, arranged by The Star and broad
cast over a Nationwide network Of
the National Broadcasting Co.:
For more than $50 years the Ameri-
can ideal has been a system Of free
individual enterprise In a competitive
market. Every man was entitled to
the rewards he could win in fair
field without favor. To protect him
tn this right the Constitution and the
laws were so drafted as to shield him,
on the one hand from too much gov
ernment interference and on the
other from private interference by
those who would. by unfair device,
deprive him OF his opportunity.
That is still the American ideal, but
We have come to such pass that nine
years after the worst depression in
history, after the expenditure of bill
lions Of dollars borrowed on public
credit, we are told by Government
agent, who was specially appointed
to find out, that there are in the
United States between 100000 and
10000 persons, anxious and willing
to work, who are without employment.
This is a condition which threatens
the very survival of the American
ideal. 1t calls for something more
than epithets 1t calls for sober think
ing, patriotic cooperation and Wig
orous action. More than anything
else, 1t calls for restoration of pub
he confidence in the good will and
honest purpose of both our political
and commercial leaders.
Fecause, with Senator Borah of Ida
no, I have offered a bill asserting
Federal authority to define the power
and the public responsibilities of all
corporations engaged in interstate
commerce, must make it perfectly
clear at the outset that the purpose Of
this bill is not to increase but to de-
crease Government interference in pri-
vate business. not to restrict business
but to set it free.
Some Form Of Law Needed.
1 Strange as know it sounds to many
ears, have no hesitation whatever in
asserting that the American ideal of
free, independent private enterprise
cannot endure without some form of
Federal incorporation law. Unless
this principle is adopted 1t will be diff
41cult, If not impossible, to avoid some
sort of collectivist state The expert
ence Of the whole world teaches this
lesson and We shall be blind indeed to
what is going on about us If We fail
70 heed it.
THE central fact which, in the face
Of warnings by eminent and thought
3ul leaders, we have ignored for fully
30 years is that the modern corpora
tion is itself . collectivist state
sort Of absolute government which
fntervenes between the teople and
their historic institutions, government
which is not responsive to the ideals
Of democratic control which is not
conscious Of public responsibility, but
which is unable of itself to solve the
problems to which its very existence
gives rise.
Let me mention a single example
the American Telephone & Telegraph
Co-because 1t is known to every one,
Is generally believed to be well and
honestly managed and has not been
involved in any of the recent emotional
f1ioE ~
this as private enterprise, but Is it?
What private person owns it? Its
owners are its stockholders, numbering
In excess of $4,000 persons, more than
there are inhabitants in several States.
If We were to add to the number Of
stockholders the number of employees,
We would have an economic state, the
population of which Is exceeded by
that Of only four cities in the whole
United States.
The American Telephone & Tele-
graph Co. bears q more vital and init
mate relationship to all of the people
of the country than any single State
government. 1t is national in its
scope. It collects its revenue from
VSCly III lAlC ldlu. 1Ct ~
came into existence to do business in
interstate commerce, the regulation of
which was committed to the Federal
Government by the Constitution, with
cut 20 much as saying by your leave"
70 that Government"
= Creature Of Government.
= Precisely here is the point which
Is q people we have persisted in mis-
understanding. Precisely here Is the
point which has been the cause of
most Of our economic ills. We seem
unable to get away from the idea that
corporations, no matter what their
eize, should be judged by the same
standards and clothed with the same
right as natural fiesh-and-b blood
persons. What natural fesh-and-blood
person in his own right and in his own
name could span the country with q
Communication system like that of the
American Telephone Il Telegraph Co.?
Again let me say that cite this par
ticular organization without the
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