The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-11-24
LEGISLATION ON TRUSTS
PRESIDENT WILL GIVE PROMINENCE
TO RECOMMENDATIONS.
Industrial Commission VIII Make Re-
port Favorinu the Granting of Federal
Charters to Industrial Combines.
Especial to The Post.l

Washington, November 23.--lt is quite
probable that the president will give an
important place in his message TO trusts
and interstate commerce II is known, in
fact, that he will urge vigorously the ne
cessity for publicity in the affairs OF great
combinations of capital and he will call
attention to the inadequacy Of the present
interstate commerce law. What he has 20
say will be awaited with especial interest,
in view Of the opposition which has APP
pearcd In the Northwest 20 the proposed
merging Of the great transcontinental rail-
roads This question is already under
consideration in department of justice
The contention of the organizers OF the
Northern Securities company Is that, like
the steel trust, it violates no Federal OF
state law, but the department of justice
sees one marked difference between the
two concerns. The railroads which thc
Securities company control are quasi-pub-
Tic corporations, with charters from the
States
The existence Of the industrial commits
sion terminates on December IS. and on
that date the report Of the commission,
with its recommendations, will be submit
ted. While the commission is still di-
vided over some aspects of the trust ques
ton the members have agreed on the basic
proposition that the trusts should be
brought under Federal supervision similar
10 that exercised over the National banks f;
that is, that the books OF the great cor
porations shall be open 90 inspection by
Federal officers.
The commissioners think that the great
est popular objection 10 trusts Is that they
are enabled to crush competition by under
selling their competitors in one part Of the
country, making mp their losses BY increas-
ing the cost Of their products in other
parts of the country where they are free
from competition. Another strong objec-
tion 10 trusts is the amount of water in
troduced into their stock usually when the
trust is formed. By bringing the trusts
under Federal supervision the commission
ers think they can be compelled 10 exhibit
what their assets warrant It is substan-
TALLY settled that the commission will
therefore recommend that the trusts In
some manner be brought under Federal
control.
The commission says that In organizing
the National banking system congress lev
led n tax of 10 per cent on the notes Of
the State banks and offered special in
ducements to them 70 become National
| banks, the State banks thus being forced
/ on one hand and coaxed on the other to
submit TO Federal control. They are con-
sidering in what manner a similar plan
can be made applicable 70 the trusts, so
that they will be more DESTROYS Of be-
coming Federal corporations than remain
! ing under State laws. Such a plan in
cludes a National charter law enabling
congress or one Of It's departments, prob
ably that Of commerce and industries
should the latter be created TO charter
corporations for interstate commerce. To
make it undesirable for the trusts 10 re.
main outside il Is proposed TO place a
Federal tax either on the products OF a
corporation with q capitalization above a
certain figure, when sold in State wher,
they were not produced, or OH the cor.
poration themselves. II is thought thai
the constitution covers this subject in Civ
ing congress the right 70 regulate inter
state commerce.
The members are In accord in the belle
that the prices Of trust products should b'
uniform throughout the United States, witt
proper allowance for fpo'ght charges anc
other legitimate expenses, and should no
depend upon the ability of the trusts q
crush competition and TO force the peopi
to pay a higher price in one place wher
there is no competition, while granting
special low price 10 other communitie
where there is competition.