INVESTIGATING THE TRUST PROBLEM 119 



the corporation law of the various states in the United States. 

 The report of Professor Jenks in volume eighteen gives the 

 laws relating to corporations in foreign countries, especially 

 England, Germany and Austria. Professor Jenks's report is 

 especially valuable, showing, as it does, the effectiveness of 

 foreign legislation in checking the growth of speculative cor- 

 porations, limiting their power, and directing their activities 

 within legitimate channels. The examination of the wit- 

 nesses who testified in regard to the corporation law of New 

 Jersey, Delaware and West Virginia, shows the weakness of 

 our present corporation law under changed economic condi- 

 tions. The present law was formulated and enacted for the 

 government of small corporations, working under the laws of 

 competition. These laws are entirely inadequate to govern 

 the large corporations, some of which have a certain degree 

 of monopolistic power. This investigation of state corpora- 

 tion law calls attention to two aspects of the problem that 

 ought not to be neglected. First, the control of the corpora- 

 tions by means of improving the statute laws of the various 

 states, and, second, the control of corporations through a fed- 

 eral corporation law. The testimony regarding the corpora- 

 tion law of those states in which the great corporations are 

 chiefly formed show how inadequate are the present laws to 

 control corporations whose business is world-wide. Both the 

 public and the lawmakers are beginning to see the folly of 

 granting charters with no restrictions upon the operations of 

 the giant corporations and afterwards filling the statute books 

 with drastic laws attempting to curb the creatures which have 

 grown strong on the favors given them. If the report of the 

 commission should have no other effect save that of calling 

 attention to the absolute necessity of revising the corporation 

 laws to fit the changed economic conditions, it would be justi- 

 fied in its existence. The investigation of the Industrial com- 

 mission directs attention to the desirability of changes in the 

 state laws or to the adoption of a federal corporation law. 

 The difficulties of the latter step are fully discussed by Pro- 

 fessor Huffcut in his paper "on the constitutional aspects of 

 the federal control of corporations." Its advantages and dis- 

 advantages are considered by such attorneys as James B. 



