should be required to publish annually a properly audited report, showing in reasonable detail their assets and liabilities, with profit or loss; such report and audit 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. From the testimony given before the Commission, and herewith submitted, it has been proved that, before the passage of the Interstate Commerce Act, discriminating freight rates were frequently secured by large shippers. Other evidence herewith submitted, to be supplemented by additional testimony which will be laid before the Congress shortly, seems to show that like discriminating favors are even now granted. Believing that these discriminations clearly tend toward the control of business by large combinations, your Commission further recommend : (a) That the Interstate Commerce Commission be given authority, not only to prescribe the methods of keeping accounts of the railroads and to demand reports in such detail as it may require, but also to inspect and audit said accounts; (b) That the Interstate Commerce Law be so amended as to make the decisions of the Commission operative at a day fixed in the decisions and until reversed by the United States courts, on appeal ; (c) That the Interstate Commerce Commission be authorized to prescribe classifications of freight articles, and to make rules and regulations for freight transportation, throughout the United States; and (d) That penalties for violations of the Interstate Commerce Act should be appropriate fines against the carrier, and not imprisonment of officials. JAMES H. KYLE, Chairman. J. J. GARDNER (as to trusts). L. F. LIVINGSTON. M. D. RATCHFORD. * I concur in the recommendations of the Commission on industrial combinations, but withhold my judgment on transportation corporations until testimony now being compiled by Commission is submitted to Congress, with recommendations. WM. LORIMER. † I concur in all, except paragraph marked (b), page 238. It seems to me better that rates fixed by Interstate Commerce Commission should not go into effect in case of appeal until affirmed by court, and that trial on appeal should be expedited. ALBERT Clarke. APPENDIX C* PLAN OF BIRD S. COLER, COMPTROLLER OF NEW YORK CITY, FOR THE REGULATION TRUSTS + OF Whatever the State creates it should either supervise or control. Government was created for the protection of all and not that the representatives of the people should barter away the public rights and utilities in perpetuity. Every corporation should have a definite period of existence and the right of renewal should rest with the state and not with those in interest. Business that requires secrecy of management and manipulation of securities is not entitled to the protection of the State, and should be refused corporate powers. No corporation should be allowed to issue securities except for actual value, and these should not be placed upon the public market until the end at least of one actual business year, and then only after public reports by cer *The arguments and comments are omitted, as in the other appendixes. The plan is given in full. +"Congressional Record," Fifty-sixth Congress, first session, V. 33, p. 6,926. tified accountants under employment of the state and bearing its seal. This to check stock jobbing and to foster legitimate business and investment, and also to provide definite information upon which to base assessment and taxation. Places of business and location of factories should be named at time of incorporation, and no removal of same should be allowed without consent of the State. From its beginning the accounts of every corporation obtaining a charter privilege from a State government should be open at all times to examination and regulation by properly appointed public officers. . . Chartered companies should be compelled to confine their investments and development to the legal and proper conduct of the business for which they were created and for the prosecution of which they have received from the government special privileges and powers. Uniform laws compelling publicity of important matters of management, frequent examinations by State officials prescribing honest systems of keeping accounts, and such other restrictions as exigencies may require for the good of all, including the protection of such communities as have been built up by the establishment of business concerns and the forbidding of their abandonment without the consent of the State authorities and for adequate reasons shown, |