HOW CONGRESS MAY CONTROL TRUSTS 229 



ping the evils of the others. An attractive measure would 

 be to combine with the rigid restrictions above mentioned, 

 which would destroy many if not most of the evils, a provision 

 that federal corporations should be exempt from state taxa- 

 tion except as to property actually situated within the several 

 states. Now the large corporations fear and oppose and evade 

 state corporation taxes. The variations and complications 

 arising from different systems are troublesome; in many cases 

 lawyers say, probably with some exaggeration, that corpora- 

 tions are subject to " strike" bills and to blackmail where dis- 

 cretion is left with minor officials. They would be willing to 

 pay a federal tax even heavier than their present taxes if it 

 were alike on all and fairly and honestly levied. Such an 

 exemption provision — and possibly others which might check 

 too hostile legislation by separate states — might easily prove 

 so attractive that the sound corporations would readily organ- 

 ize under the law and aid in its just enforcement. A federal 

 corporation law, if enacted, should certainly at first be made 

 permissive rather than mandatory. There would thus be no 

 danger of a revolution in business ; the courts and the business 

 community would adapt themselves gradually to the new line 

 of organization. If the law were reasonable, even though 

 very strict, the best corporations would come under it at once. 

 The others would soon feel the pressure of public disapproval, 

 if the federal law were distinctly the best. If experience 

 showed that it were necessary to extend the scope of the act, 

 though that is not probable, it would be comparatively easy 

 later on to force, by taxation or otherwise, other state cor- 

 porations engaged in interstate traffic to incorporate under it. 

 The three plans indicated are not contradictory; they 

 are rather progressive along the same line. Either act could 

 be passed alone, or all of them might be passed together. If 

 the first law discussed were enacted, it would doubtless give 

 us valuable experience and decisions, and would be, with the 

 exception of one point, a distinct step in advance, possibly 

 all that should be taken at first. But, so far as has appeared, 

 it is practically entirely compulsory in its nature, and could 

 be readily evaded. The other two measures seem more 

 drastic, and doubtless would be more rigid in many ways; 



