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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Jan. 28, 1910)
W W '3?W?Sf?Pr 6 044. Thoy arc Bubutnntlally contained in the arguments I havo gone ovor. For thoBO reasons, the Industrial commission rocommondod tho third plan, that under which tho national government is now proceeding, supervision and regulation by the public, ilioro nro two methods or doing this recommended by tho commission, only ono of which has yet been triod. Ucsldos theso two methods, other things havo boon suggested, such as forbidding obnox ious corporations tho use of the malls, and tho administration of monopolies directly by tho government; but neither of theso remedies was thought advisable. The two recommended were: First, supervision and regulation by the method of roports and investigation by the bureau of corporations in tho department of commerco which itsolf was rocommended by, and created an a consequence of, this very report. Under this romody, wo include that of publicity with all consequent advantages. Secondly, thoy recommendod a franchise tax to be Imposed by tho federal, mvorn.nont upon corporations en gaged In interstate commerco. As part of tho machinery of raising this tax, It would bo pos sible to got at all tho Information now obtained through tho bureau of corporations by direct In quisition, and It would bo Indirectly obtained. It probably would not havo subjected tho govern ment to tho falluro of Its prosecution of ob noxious trusts, as has recently happened In ' Chicago. Congress at Fault Tho Industrial commission therefore directly rocommended by a unanimous vote tho adoption of this third plan and further recommended: That tho district attorneys of tho United States bo authorized and required to Institute proceed ings for violations of tho federal anti-trust laws or tho othor legislation contemplated by tho rocommondatlon; that thero should bo uniform legislation recommended as to combinations and conspiracies; that tho laws of Massachusetts should bo followed as to public service corpora tions against tho watering of stock; that thero should bo an annual franchlso tax calculated on tho gross earnings of tho corporation from Interstate business; and that tho bureau of cor porations should bo created. This last alono has been done Congress, however, instead of passing tho law recommended by tho commis sion, that tho examination, Investigation and re ports should bo made by and required from all corporations oqually, left tho law in such a shape that It was optional with tho executive officer or commissioner of corporations what corporations ho should Investigate, if indeed, he should In vestigate any at all. None of tho taxation rem edies, as I have said, wore used at all. Mr. Phillips, tho former chairman of the commission, concurrod in all this roport, his apparent mi nority report merely consisting in tho addition of still further remedies. Only Big Corporations Favor Federal Incorporation Now, whom do wo find in favor of federal in corporation among tho thousand witnesses ex amined by this commission and in tho nineteen volumes of evidence and discussion by tho com mission and its exports? The legal and economic advisors of tho commission in tho main con curred with its results. In fact, tho commission roport was probably based somowhat upon their tostlinony. Among them wore Messrs. Frank L Stetson, J. R. Dos Passos, and other loading lawyers of Now York; Professors Jeremiah W Jonks and Ernest W. Hufford of Cornell Uni versity, thon and sinco employed as an exnert In all economic investigations by tho govern ment; and many other advisers. These were against federal incorporation. Now who were the w tnosses In favor of it? They will be found in Vol. 1, page 230 of the commission's report qtnnSrnntr- Archbolf vlco president of the Standard Oil company; Mr. Rogers, president of tho National Transit company; Mr John n Rockefeller, then president of tho Standard Oil mmYaMr- Gates' chairman of tho American S eel & Wire company; Mr. Pan, general counsel of tho American Steel & Wire company Mr Dill a corporation lawyer from Now Yo"rk author of the present New Jersey corSoratton laws; Mr. White, president of the National Salt S iV??, 0'Senator Drylen, head of the Pru dential Life Insurance company Md?Ubts' thorofor. as to this revolutionary change in our economic and political condition resolve themselves into four princi nles whiJh t will state in tho inverse order ofueirimnnr tance: First, the deprivation to the sate ofPaH tho revenues now derived from the taxes on corporations othor than their tangible property The Commoner. and the loss of such revenue also by cities and towns Secondly, tho fact that I would rather have tho Standard Oil trust, for instance, re nJain at the mercy of forty-five state legislatures besides the national congress than have all power to control it relegated to congress itself. Third ly, that I am unwilling to take from tho people of the states in their several localities the con trol of their own legislatures, town councils and boards of selectmen over all these instrumentali ties which, more and more, are going to do tho major part of all business; and to take from the state courts, tho state boards, the state commis sions, tho' state police authorities, all regulation over the bulk of our industrial life; and finally, and most of all, because I fear to entrust these vast powers to Washington; because I dread doing away with that system of national and state power which has carried us safely so far. I have no doubt of the virtue of the United States congress. I do not question that in the main, they are patriotic and far-seeing men hav ing only tho interest of the whole people at heart and never tho interest of any particular industry or any particular locality; but you should not strain their virtue too far. The cen tralization brought about by this system would be something only paralleled in the government of tho czar. England is a small country, com pared with ours. GENESIS OP NATIONAL INCORPORATION Our valued contemporary, the New York Globe, has performed a real public service in locating the father of the idea that a' national incorporation law should be passed as a harbor of refuge for tho trusts. This father is a ven erable and well-known man. He is a personage of largo property interests, philanthropic ten dencies and oily manners. He became suddenly famous, in the recent presidential campaign, as tho mentor and benefactor of a distinguished republican senator from Ohio. His office is at 2G Broadway. We see that you have already guessed his name. And you are right. John D. Archbold is the father of the federal incorpora tion scheme which is now presented to congress in a message written by President Taft and a bill drafted by Attorney General WickerBham. Before the Industrial commission of 1900 Mr. Archbold, while on the witness stand, gave this testimony: Q. You have stated that you would favor the formation of national corporations. Would you have the capital of those incorporated unlimited? A. I would have it unlimited, but would put upon the Issue such restrictions as to value in volved as would fairly protect the public; I mean the general public. Q. You would have these national corpora tions subject to the supervision of the commis sion, or some other governmental authority? A. Undoubtedly, as is the case under the Eng lish corporation law. Q. Do you think tho formation of national corporations would overcome most of the objec tions that are now raised to corporations com monly called trusts? A. I do. I believe it would do away with all talk of monopoly, make every business free to all comers within the law and under the provi sions as now made. Q. Favoring national charters and national supervision as you say, would you go to the ex tent of favoring inspection of the books and af fairs of each concern, as the national banks are Inspected by government officials? A. I have not made a study of the subject so as to make a1 statement in detail as to what the supervision and restriction should be I should say that is a question that ought to be carefully considered before expression is made, and I could hardly answer it today. On general principles I favor all fair supervision and making of statements that would enlighten the public It will be noted that Mr. Archbold, ten years ago, fa r y covered the essential features of the Ml which Mr. Taft now champions. He favored al owing these federal corporations to be capi talized at any figure they might desire, but "with such restrictions as to value as would fairly protect the public;" he would have them "su jected to the supervision of government m, thority," and he favored their bling reZ?red to make such statements as would 'lnlighten th public." And he believed that this format on o national corporations would overcame he objections to the trusts and "do away with all talk of monopoly." n aii Mr. Archbold, of course is much more devoted to -the federal incorporation idea now-thS The' nMf? y?rS aie0 For ;thepresident has pointed out, unless such a-law-is passed $ VOLUME 10, NUMBER 3 Standard Oil monopoly will soon have to dis solve, along with the sugar trust and the tobacco trust and other like oppressive combinations, or their officials will bo subjected to the indignity of a penitentiary sentence. But if they can get their federal charters they can continue to do business as before, subject, of course, to "gov ernment supervision." The only thing we are unable to understand Is that some people refer to the federal charter bill as an "anti-trust" measure. Omaha1 World-Herald. TIMELY QUOTATION Peace, war, legislation, finance what have tho people to do with such things? Of course tho peo- Slo havo to pay; of course tho people havo to servo; ut that should suffice them. They haVo a placo In policy; from themcome two essential things, tho army and the budget. To bo liable to con tribute, and to bo liable to serve; is not that enough? What more should they want? Thoy are tho military and tho financial arm. A magnificent role. The people givo their blood and their money, in return for which they are led. To wish to lead themselves! What an absurd idea! Thoy require a guide; being ignorant, they are blind. Victor Hugo. The Commoner will be glad to have its read ers suggest for publication in this column some quotation that may be serviceable just now to the American people. SHARING PLUNDER Speaking at Omaha, former Governor Joseph W. Folk of Missouri said something that de serves a place in every well regulated scrap book. Governor Folk said: "If it be said that the protective system is wrong, but as long as it is allowed we might as well get a share of the plunder for our own state, the answer is that sharing in the pro ceeds of robbery could as well be justified by f claiming that since men will rob we might as well profit by this weakness of mankind. The real purpose of protection Is to stifle competition, and to that extent help monopoly. The time has come to protect the people from monopoly instead of protecting monopoly from the people. It is claimed that under the protective system money is distributed by drip ping down to the people from the overflowed pockets of the protective tariff barons; if that were true, the people would simply be getting back a part of that which was taken from them unjustly. Whenever a few men obtain more than they ought to have through privilege, thero must be some who will have less than they should have. To say that when everybody pays too much for everything everybody is benefited Is to state an absurdity. If the privilege of protection could be accorded to all alike, it would in the nature of things benefit no one. It is because it gives a few special privileges at the expense of the many that these-few clamor so loudly for it, and it is for that reason the many should not submit to it." ' - - ) A VETERAN REPUBLICAN'S OPINION A special dispatch to 'the Omaha World-Herald follows: Clermont, la., January 21. At a quiet dinner party, where were present a few relatives and intimate friends, former Governor William Larrabee celebrated his 78th birthday yesterday. Many con gratulatory telegrams from all parts of the state were received. The former governor, who is a red hot progressive, had no hesitancy in making known his views on the present administration. He declared in a letter sent to Freeman R. Conway of Ames, in reply to a letter of congratulation, that very few people in the east are satisfied with Mr. Taft. Mr. Larrabee has recently returned from an extended trip in the east, where he declares there is the same dissatisfac tion in politics as exists in the west. Here are a few extracts from the letter: I found the political feeling among the rank and file the same as here. very iew are pleased with Taft. 'Roosevelt is still a favorite. n. w 0e WJ!! have t0 g0 and with him a lot of machine followers. 'onn?tice that 2awsn flees from-the fK. COime' We can 8pare mor of the same class. ''It would not be strange if the demo crats controlled tho next house." 0 0 0 0 0 0 0 0 ' '. . , 0 0 sw"R'wra!s6i"--"j tj iJt-t.,M "I i I t"t T Ijil tfin I