228 JEREMIAH W. JENKS 



under it. If it were made compulsory, they would employ 

 every device to avoid doing interstate business, and com- 

 paratively little would be accomplished. Should congress, 

 on the other hand, make a law of such a nature that it would 

 be advantageous for corporations to organize under it, the 

 result would be quite different. The chief objections that 

 have been made to the plan are : 



(a) That it would bring about a high degree of central- 

 ization in all of our important business, and that it would, 

 by the transference of much business from the state courts, 

 grievously overburden our federal judiciary; and 



(b) That were congress to propose the enactment of such 

 a law, the influence of the corporations would be such that 

 the law, when made, instead of being restrictive, would prob- 

 ably be even more liberal than our present state laws. The 

 corporations, then, instead of being under better control, 

 would be practically placed beyond control. 



If in such a federal corporation act, following the prec- 

 edent of the national banking act, provision were made, if 

 necessary, that suits might be brought in either federal or 

 state courts, there need be, and probably there would be, no 

 great increase in the activity or power of our federal courts. 

 If congress were to follow the precedents already established 

 with reference to corporations in Porto Rico and in the case 

 of the national banks, its law would probably not be too 

 liberal. It would be made of necessity under the pressure 

 of an awakened public opinion, and attempts to give too great 

 privileges would probably be checked. Such a law, if passed, 

 should provide for a high degree of publicity as regards the 

 organization and management of corporations, should im- 

 pose rigid provisions regarding capitalization and manage- 

 ment, and might readily, if it seemed wise, forbid discrimina- 

 tions in prices or make any other conditions that seemed 

 reasonable. 



Compulsory severe legislation is always hard to enforce. 

 In the present difficult case it would be extremely desirable 

 so to legislate as to put on the side of the law the great cor- 

 porations which are trying to do a fair, honorable business, 

 which is in the public interest (the "good trusts")? while stop- 



