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."
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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."
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