THE CONSOLIDATIONS CALLED "TRUSTS" 89 



The remedy, in general terms, it is not difficult to state. 

 The first thing to do is to abandon the present policy of out- 

 lawry and extermination. That policy has failed. It has 

 failed through conditions that cannot be removed by law. 

 Replace the old policy by a new, under which industrial cor- 

 porations subjected to restraint against artificial prices, 

 will be made, in organization and management, to invite, and 

 worthily invite, the confidence and copartnership of all the 

 people of the country. To suggest concrete legislation is 

 perhaps more difficult. It should include the repeal of the 

 Sherman act. Logically and impartially enforced, that act 

 forbids two grocers, on opposite corners of the street, from 

 forming a copartnership to save expenses; partially enforced, 

 it puts the industries of the land at the mercy, not of the law, 

 but of the officers of the law. The legislation that replaces 

 it should provide against artificial prices, brought about either 

 by a cornering of the supply, or by conspiracy; and also 

 against discrimination in prices as to either buyers or places, 

 except as affected by actual transportation rates. There 

 should be a provision for open books ; for stated examinations 

 by some department of the government and for periodical 

 statements to the public, as in the case of national banks 

 and many of the railroad companies. 



The new legislation should forbid the issue of primary 

 stock in excess of the cash paid in, or the real value of property 

 contributed, to make up the company's assets. Some de- 

 partment of the government should be charged — as between 

 the company and the public — with the duty to see that this 

 limitation was enforced. Provision should, of course, be 

 made for further issues of stock as the value of the property 

 increases; but such issue as is based not on subsequently 

 acquired property, but upon increased value due to manage- 

 ment and operation, should be secondary, always, to the first, 

 and should be put out only after judgment, by the appropriate 

 department, that it was justified by the earnings and standing 

 of the company. To the extent that such subsequent issues 

 represent increased value, due to management and operation, 

 I would encourage, by every feasible method, its division in 

 fair proportions between those who have furnished the capital 



