Show SELIGMAN ON TRUST PROBLEM To S S Sed k to Abolish Abols Trusts Trl as asS Such S ts Is Vt VI Vie lon ry TO REGULATE CORPORATIONS By Ry to hi l 1 aNti I I f i VAl Awl Ml Chicago Oct O J Tha second day tF o othe of it the the National CIVIC th convention of or t federation w a devoted to t t tip tl t e r atlon tk of Tho Tb O pral lu Its I Oon COR 0 K tract Ion and The ff cheat h e Se the tb program and ad the th subjects abject d wire wen w M as follows follow follo folloW I 1 W Jenks leon C vet The T Trust Truit Tt edgar Ir A Bancroft Chicago Ci De n versus verll Re n L LeJa to Isaac 11 N New Mew Tot Tork Th Th The Trust Trl Irving Irvine Fisher New Raven R Over Overcapitalisation Ove capitalisation ELOIAN Too Tb T address by b Mr 1 hima wa Wee In Incie chief cie part in follow ro That lt are ars eVIls or dangers eon con 1 d wih wilts Ith th the traits trait tl R in is I but bil the 11 way a to 10 remedy ly that W is 1 to seek ek by b appropriate Uon to tf cure cur eu th t teU the evil eU white while ble maintaining the Ih benefits Ine To Toek eek ek I to abolish abollah trusts tr an as 1 such nuch in is vision visionary visionary ary ar to seek ek to t curs cure Il some nine of the evils ei of o trusts la ii perfectly reasonable I I It la is worthy orth of or note that In no other country 1 of or the ti world orld la is I there the nay any ar such Ich tal I 1 as a the Sherman law lw NATIONAL N A NOL It U appears ap to me m beyond any an tea rea dt that tbt a rea 11 regula ila ton of our oar 0 Is desirable and yen oven essential It U is I desirable an ove In the th Interests ln ur f t the tf O them the selVi elv I s It ls is I difficult I to Conceive of the lh possibility of establishing any uniform Intelligent regulation of ot corporations I If every fer law lawa Iw tat tate Is I to t na 1 pass It I its own owls With the thi ti ever ft growing magnitude of nt our or modern mo commercial lal and Indus Industrial IaU trial processes th the Inactivity of ot the Uie t central would nouH woul some 1 elates t to I attempt a regulation for foi Mch toe t i are g eminently unfitted be ho bem b m nf Of f t Intern i tt character of or the tho pra t I inn 11 I firmly believe that th tb or of a l franchise fanch or o II U IIi Un i ens n to engage enl In II lt commerce tend Ind full tulI 1 to ret ct t urh torn com l as a il at the law lan la an would defend nd th Ihn in front from the tbt h hl harass r neat mont It by I M 4 rt le FAVORS KAVOR FA VOR I 1 b v advocated dv publicity ia Ii a d of or affairs alai of trust t or op o oe or ar e combinations I to t n me to be b b on if aoi permanent antidotes I reen way J tha ih tame iame me which ta hi I already a applied 1 to saving v vin banks lk and a west mat by the t es and to tolu hanks bank lu a d tap be Up t foder r l nt not n bo t 4 1 p y F especial lal tr I t tsp t the t Suing i il cation n of regu rp rpm lir 2 m I rules rue and il it t Drio ha extent et I to t I which wb a corporation be required rul to tl expose It its af taft NS it te the scrutIny of o the tue need nd not necessarily be a v vur very r detailed one What W has h been done don on voluntarily by bythe b bythe ti the United States Stat tat Steel corporation be taken tAn perhaps p pa as an example of ot wat ought to be b made ma obligatory on all aB a trusts Their Ther established policy pol of o giving Iv monthly mO ly quarterly and ad an annual annu annual nual nu statement to the public acUmen authenticated tented by b chartered accountants has I strongly ly appealed to the judgment Jut and nd confidence of tin the public and nd has baa done much to give glA C the corporation its Ita lt de deservedly U high hl imputation WILL WIL AROUSE OPPOSITION It I la is I true tr sand and It will wUI In all al rb Ib ability remain true Iru that attempts attempt aU i to tm m pose p regulation upon u certain kinds kind of f business l u will wil always arouse certainly at t the bo be b beginning ginning The Tl attempt to turn tur the light licht of If f publicity on a combination that has hax h been making laIge profits In tn the th past pa nil 1 h y be b bitely bitterly opposed b by th tIm and n e even en n perhaps th the ur its Ity Iv holders holder But Bil 1 tIll I fact remain that some Ir v holy isely IMI cond l 1 is advisable slid and a IhM th the Ih central gov government ov Iov la is I butter better lter qua qualified 1 fe i II mm enact Na Naw wise w and cint laws than tha th Ih the i eral pral states state National regulation lalo ought I t apply app to 10 all corporations nf or more tr than it is 1 er certain re tale tain Slav shin Iota doing Interstate A ADI ADMINISTRATION POLICY The Thi T th anything more m than endeavor to 10 seure UN publicity ought ol to be b attempted I is mi an ln on It I li I d the Ih national administration has hns been tn non oon On a which Is i 1 o novel 1 nov in Its I nn all n y V It 0 prevent a trust trual m at lt i he Alm tIm s price pr for fOI pih sent f 1111 1 I sI I I V a m In I n different mesh localities ties tie I It I l I is u i that ithe th present nl Sherman Mn a 11 act t Ia w nn pr nde ss to I make mk such Uch n a f criminal offense Much uch an In lion dome d nut not ap appeal enl to my Judgment There ire are u many man perfectly i r n Jn nn why h It may become e to reduce u prices below blow ghe th b nominal nom level 1 at certain Il places pice pe fUt SALES ABROAD ARAD Of a similar sheller character to Is the tie tieton sug suggestion g ton that t in some mm way w the t trusts trust lu must bo be b prohibited from fm sailing ln their tha goods 8 5 abroad d at HI lower lown rates rate rt than U are I charged for the same mine ae goods at home honie This ne to is dr certain c cn a perfectly form fora ron of o ordinary Ity business 1 e m In I order r to 11 extend eit nd t and aM thus thu to 1 Increase It materially their prosperity It Is I not peculiar to tol tle no l sib the trust trait It Is not nt dependent upon the Ut tariff tl and Ud th u the attempt to t prevent pet till this method mth of or doing business which h I is universally 40 fl throughout Khe te he civilised world rl would old simply pimply be b to put American enterprise at t a dIsadvantage o I Amen tM CAPITALIZATION The question of capitalisation n In Inthe Inte inthe the te case of the th trust tr to Is I one oe that primarily pm manly marily ml aCetta alecta tet the Investigating pub public lie lic li entirely too tO much In my opinion opinion has b been bean b made de of overcapitalisation of or Industrial enterprises enterprIse So 8 tat far f as th the control con of or capitalisation to is I Intended to tor safeguard r the th investor I 1 can Ia only ou re ye record cord my conviction that tt tt the t Judgment u t tor of or the market Invariably discounts the tb nominal capitalisation of the tM company n I I this tle capitalization capitalisation Is 1 larger la than the f facts warrant tt the ut sell I at it ata ita t ta a discount if I smaller mar they sel I at a premium The actual l basis bl of or such ouch market valuation to Is I not the par valueS value not yet YI the lbs tb actual assets Sets t to earning el of o the ta company capacity hut but It I la ii I in I every e case The Th antitrust policy should ld not proceed faster than tb I is I compatible b with public J welfare The Te t pubic public have too ten tl much Interest In such securities MU MUI tile I and md the tl shock hok to business Intal outs eats M to is too violent The Te law la should be b so a modified If as to reach reoh rM only those thoas th who wl have baye really real admitted n a 1 crime against the Interest of ofIr the Ir community as a whom whole The Thu T at attempt attempt 1 tempt vigorously to enforce a law lw which wh lh Is II bReed b l upon erroneous ert prom prem premises fall fail but In Inthe Inthe inthe Ire I Is III bound wt l only to the meantime to create havoc CONFIDENCE IN ADMINISTRATION Individually I t have every ee confidence In the th Intention of the present pa admits admin administration a to tn art act t fairly trl and n reason reasonably reasonably ably toward corporations There Te Is i 4 my nay opinion more danger eUc to 1 bo be feared fer from the Hie le ordinary tendencies of or the various 11 state thin than from the national administration or o any U future national administration while W ee we may never reach the Ideal Id goat goal there ther is I every ever reason In to believe blie that dt a under de pro proper p proper per safe corporations will wi be he hemore more mora secure IU under td an effect I vand run rea reasonable national Incorporation law lawthan lawthan than Ihan various at t states present under the te laws I of 0 the t nEW ARE OP or CORPORATIONS The Tb of O the ti bureau of corporations has h usa donS done do touch much mich to t point pint out the tbt prevent present p nt dangers la to our system tm Whet What I la is now needed nee to is f a molon of ot the tho Hh Sherman law the tho repeal of ot its Ita It and unreasonable provisions and i their theli replacement by b sections providing fur u a reasonable publicity and n for t a are reasonable re I regulation of ot all tl is o ration rU doing do an nit state b aMuses Many Mam 38 reforms fon have already been tut d and anet we wo need have no misgivings has an tat whIsh w his has ac ae a so ao will tall faa in securing e e more lUG fur tor l r the tb white jao jeo r the busts ha the of t which to Is aa se sew w 1 I III tile taa the tM aak aaker er era were eN Oros sg at Chicago Cb who U cI airTh I It of 0 a corporeal ami el 1111 Frank FVank B Kotlas AC f St Paul Paw and aM aV E B Press Pruss Pressins ins Ing I of |