Bureau's work is essentially constructive rather than in the nature of prosecution or of attack. It also tends to bring about a better understanding and freer exchange of ideas, and, all in all, is a much more satisfactory basis than formal legal process. At the same time, this method, particularly in the case of a limited number of corporations which are indifferent or hostile to the Bureau's work, or in the case of certain classes of information which there is an indisposition to furnish, has at times resulted in extended delay. Indeed, no small part of the delay in completing certain investigations has been due to the continued and persistent temporizing or refusal of some corporations to furnish desired information. It is a debatable question whether in the long run the Bureau has lost more by such delays than it would have lost by strictly enforcing its legal rights; and this subject is raised here not with a view to a positive recommendation for the more extensive use of the compulsory process, but rather to point out the desirability of careful consideration of the subject. Any increased use of the compulsory process should be made only after careful consideration in each specific case of the question of the immunity thereby conferred. In this connection, one practical handicap in using compulsory process is the lack of any provision in the funds allotted the Bureau itself for the payment of mileage, etc. This expenditure must be met entirely from the contingent fund of the Department. Whether the compulsory process is to be used extensively or not, it would seem that a more satisfactory provision should be made which would facilitate its use where desired. Extension of Bureau's power to require desired information.-As already pointed out, the work of the Bureau thus far accomplished has been handicapped by the necessity of making laborious investigations in each case with practically no fundamental general knowledge of conditions except such as may have been gathered in a more or less incidental way in connection with other work. The failure to provide for the automatic submission to the Bureau of at least certain elementary data by the large interstate corporations is striking in view of the fact that several years before the Bureau was organized the desirability of such a provision was clearly recognized. Thus, the Industrial Commission, in its report as early as 1900, suggested that the larger corporations should be required to publish annually a properly audited report showing in reasonable detail their assets and liabilities and their profit and loss, such report and data, under oath, to be subject to Government inspection: The purpose of such publicity is to encourage competition when profits become excessive, thus protecting consumers against too high prices, and to guard the interests of employees by a knowledge of the financial condition of the business in which they are employed. The request for such publicity has been echoed in practically every annual report of the Bureau thus far issued, but nothing tangible has yet been accomplished in this direction, and, broadly speaking, no information from the large interstate corporations comes to the Bureau in an automatic way. It is true that requests of the Bureau for information have very generally met with courteous response from the large corporations under investigation. In fact, as a rule, it is proper to extend much credit to the business interests of the country for their attitude in this respect. Nevertheless, this method of securing information is tedious and laborious, while, moreover, there is a marked lack of standardization. It seems that there should be no further postponement of such legislation as will insure the automatic submission to the Bureau, by at least the larger corporations engaged in interstate trade, of reasonably complete data as to capitalization, properties, valuations, earnings, and personnel, at regular intervals and without further initiative by the Bureau. The exact character of the information to be required by such statute is a matter for careful consideration. In the use of such data, and in the inspection of such records, due precaution obviously should be used against the unnecessary disclosure of information of a strictly confidential or private character, the publication of which would serve no useful purpose. There should also be a complete statement of the facts relating to the original organization, and the properties or services for which the capitalization was issued. This information would put the investing public on notice as to what the capital securities actually represented, and, what is more important, would give the public at large an idea as to the character of the assets or services upon which profits were being earned. Very respectfully, To Hon. CHARLES NAGEL, LUTHER CONANT, Jr., Commissioner of Corporations. Secretary of Commerce and Labor. PRESENT STATUTORY POWERS OF BUREAU OF CORPORATIONS. The statute creating the Bureau of Corporations and defining its jurisdiction and the powers and duties of the Commissioner of Corporations can be set forth in the following graphic arrangement: BUREAU OF CORPORATIONS. Powers and Duties of Commissioner, under the Direction of the Secretary of Commerce and Labor. 1. To make diligent investigation into the organization, corporation, conduct, and of the business of any joint stock company, or management corporate combination the several States and with foreign nations, 2. To engaged in commerce among excepting common carriers subject to "An act to regulate commerce." (a) gather information and data to enable the President to make recommendations to Congress for legislation for the regulation of commerce; (b) report such data to the President from time to time, as required; (c) the information so obtained, or as much thereof as the President may direct, shall be made public. 3. For the foregoing purposes the Commissioner shall have in respect to corporations, joint stock companies, and combinations the same powers and authority as (subpoena and compel the at is conferred upon the Interstate Commerce Commission in re tendance and testimony of witnesses, spect to common carriers, so far the production of documentary as the same may be applicable, including the right to evidence, and administer oaths. The same requirements, obligations, liabilities, and immunities imposed or conferred by the interstate commerce act or act of February 11, 1893, are made applicable. 4. To gather, publish, and supply useful information concerning interstate commerce corporations, including insurance companies. 5. To attend to such other duties as may be hereafter provided by law. 16 REPORTS ISSUED BY THE BUREAU. ANNUAL REPORTS. These consist of brief statements of the character of the Bureau's administrative work for the year for which each report is made, statements as to fiscal affairs, appropriations, personnel of Bureau, and such brief discussions of general questions of policy and recommendations affecting the general corporate situation as the Commissioner may care to make. They are small pamphlets of only a few pages, and do not discuss any particular industry or corporation, nor facts intended to be covered by special reports. Annual Report of the Commissioner of Corporations for 1904. 71 pp. Same, 1905. 8 pp. Same, 1906. 7 pp. Same, 1907. 7 pp. Same, 1908. 10 pp. Same, 1909. 8 pp. Same, 1910. 7 pp. Same, 1911. 6 pp. Same, 1912. 24 pp. SPECIAL REPORTS ON INVESTIGATIONS. Report on the Beef Industry, Mar. 3, 1905. xxxvi+315 pp., 15 diags. 1905. Chap. IV. Comparison of the prices of cattle and of dressed beef. Chap. V. Profits of the beef industry. Chap. VI. Private car lines of the large packing houses. Report on the Transportation of Petroleum, May 2, 1906. xxvii+512 pp., 40 maps and diags. 1906. Chap. I. General conditions of oil transportation. Chap. II. Middle Atlantic States. Chap. III. Atlantic coast territory. New England. Chap. IV. North Central States. Chap. V. Western and Northwestern States. Chap. VI. South Central States. Chap. VII. Southwestern States. Chap. VIII. Kansas-territory field. Chap. IX. California. This report disclosed numerous and flagrant discriminations by railroads in favor of Standard Oil Co. and its affiliated corporations in transporting petroleum, by secret rates, by discriminations in open arrangement of rates, in classification and rules of shipment, and in treatment of private tank cars. Report on the Petroleum Industry. Part I: Position of the Standard Oil Co. in the Petroleum Industry, May 20, 1907. xxi+396 pp., 8 maps. Chap. I. Introduction. 1907. Chap. II. History and organization of the Standard Oil Co. Chap. III. Production of crude oil. Chap. IV. Description of pipe lines and proportion controlled by the Standard Oil Co. Chap. V. Effect of the Standard's pipe line monopoly. Chap. VI. Cost of pipe-line transportation in comparison with pipe-line rates. Chap. VII. Refining of oil. Chap. VIII. Control of marketing and marketing facilities. Report on the Petroleum Industry. Part II: Prices and Profits, Aug. 5, 1907. xlv+965 pp., 3 maps, 71 diags. 1907. Chap. I. Introduction. Chap. II. Crude-oil prices. Chap. III. Prices of illuminating oil. Chap. IV. Margins between prices of illuminating oil and crude oil. Chap. V. Prices of by-products, and margins. Chap. VI. Margin between prices of crude petroleum and petroleum products in general. Chap. VII. Relative movement of foreign and domestic oil prices. Chap. VIII. Comparison of absolute level of foreign and domestic prices. Chap. IX. General criticism of export policy of Standard Oil Co. Chap. X. Discrimination in illuminating-oil prices among States and sections. Chap. XI. Discrimination in illuminating-oil prices among towns. Chap. XII. Discrimination in prices of gasoline. Chap. XIII. Profits of the Standard Oil Co. Chap. XIV. Costs and profits for individual Standard refineries. Chap. XVI. Prices paid by railroads for lubricating oils. Report on Cotton Exchanges. Part I: Methods of Establishing Grade Differences for Future Contracts, May 4, 1903. xxi+369 pp., 11 charts. 1908. Chap. I. General nature of future trading and functions of cotton exchanges. Chap. II. Nature of future contracts in cotton. Chap. III. Effect of errors in differences on parity between spot and contract prices. Chap. IV. Periodic versus commercial differences with respect to the parity between spot and contract prices. Chap. V. Charges of intentional abuse of power by revision committees. Chap. VI. Other complaints against periodic-difference system. Chap. IX. Proposed changes in methods of establishing differences at New York. Same. [One volume, two parts.] Part II: Classification of Cotton. Part III: Range of Grades Deliverable on Contract. May 29, 1908. xvi+217 pp., 1 illus. 1908. Part II. Classification of Cotton Chap. I. Complaints against character of New York stock and of overclassification. Chap. II. Alleged severity of New Orleans classification. Chap. III. Discussion of suggested changes in methods of classification. Part III. Range of Grades deliverable on Contract— Chap. I. General Arguments for and against present broad contract. Same. [One volume, two parts.] Part IV: Effect of Future Contracts on Prices of Cotton. Part V: Influence of Producers' Organizations on Prices of Cotton. Dec. xxii+362 pp., 24 charts. 1909. 6, 1909. Part IV. Effect of Future Contracts on Prices of Cotton Chap. I. Effect of abnormal discounts of future prices on spot prices in central markets. Chap. II. Effect of abnormal discounts in future prices upon prices paid cotton producers. Chap. III. Disastrous effect of abnormal discounts in future prices upon hedging operations. Chap. IV. Fallacy of the contention that the New York Cotton Exchange must have a 'calculable" contract. 66 Chap. V. Permanent differences. Chap. VI. Analysis of complaints against commercial-difference system. Chap. VII. Duty of New York Cotton Exchange to adopt commercialdifference system. Chap. VIII. Conflicting views of the influence of speculation upon spot prices of cotton. Chap. IX. Fluctuations in cotton prices before and since introduction of future trading. |