necessary on a small scale, the limit depends solely upon the
necessities of business. Two persons in partnership may be a
sufficiently large combination for a small business, but if the
business grows or can be made to grow, more persons and more capital
must be taken in. The business may grow so large that a partnership
ceases to be a proper instrumentality for its purposes, and then a
corporation becomes a necessity. In most countries, as in England,
this form of industrial combination is sufficient for a business
co-extensive with the parent country, but it is not so in America. Our
Federal form of government making every corporation created by a state
foreign to every other state, renders it necessary for persons doing
business through corporate agency to organize corporations in some or
many of the different states in which their business is located.
Instead of doing business through the agency of one corporation they
must do business through the agencies of several corporations. If the
business is extended to foreign countries, and Americans are not
to-day satisfied with home markets alone, it will be found helpful and
possibly necessary to organize corporations in such countries, for
Europeans are prejudiced against foreign corporations, as are the
people of many of our states. These different corporations thus become
coöperating agencies in the same business and are held together by
common ownership of their stocks.

It is too late to argue about advantages of industrial combinations.
They are a necessity. And if Americans are to have the privilege of
extending their business in all the states of the Union, and into
foreign countries as well, they are a necessity on a large scale, and
require the agency of more than one corporation.

The dangers are that the power conferred by combination may be abused,