Waterbury evening Democrat., 1907-11-20
GOVERNMENT LICENSE.
President Will Recommend It for
 Some of the Corporations,

Washington, Nov 2O,-In addition
 to a strong recommendation for tinan-
 cial legislation, which, for the mo-
 ment, is the paramount question,
 President Roosevelt will recommend
 in his annual message to congress that
 ali corporations doing an inter state
 business, perhaps of a specified mag
 nitude, shall be required to take out
 government charter. Such a char
 ter, or license would be issued by the
 government on the basis of the capi-
 talization of the corporation, methods
 of business and such other rcstric-
 tions as might be deemed essential to
 the security and welfare of the peo- pie.
 The president already has suggested the government charter plan to con gress. He recommended it two years ago and repeated the recommendation last year. He is convinced that the plan will be of immense advantage to the people, as we'll as to the corpora tions doing inter state business. In two instances. the plan of supervision of corporations has worked admir- ably. It is Mir Roosevelt's belief that the application of the system of fed eral supervision as to all corporations doing an inter state business will operate advantageously as has the su pervision of the meat packing indus try and the enforcement of the na- tional pure food and drugs act. It is pointed out that the government as- surance given of the purity and whole someness of American meat products has increased tremendously the sale of those products: and it already has been demonstrated that government supervision of the sale of foods and drugs has been of advantage to hon. est manufacturers and has given con fidence and security to the people.
 With more than years experience in the enforcement of the so-called Hepburn law-the new act under which the inter state commerce con- mission is operating-it has appeared that the law is not entirely adequate to meet the needs of the railway sit uation. The president and his advis- CTS believe that the powers of the con- mission ought to be extended so that the commission may have supervision over the issuance of stock and bonds; and a recommendation to that effect doubtless will be made. It is clear to the president, too. that pooling ar- rangements between railroads ought to he sanctioned in some instances and within certain limitations. These zs-, .1Farr raF,as.. N- ,zN kx A. division of profits. but as to the main- | tenance of certain rates for specified | service. The authority to sanction | such proper pooling. the president be- | lieves. ought to he conferred upon the | inter state commerce commission.
 It is quite certain. also. that the | president will recommend the amend | ment of the Sherman antitrust law so as to prohibit only such combina- l tlons in restraint of trade as shall be pronounced by the courts to be un. fair and unwarranted.
 Just now, the president is interested | in the government char ter scheme. He believes that govern- ment inspection and supervision of in- ter state cOropration securities will be of immense advantage ~o them. as 1t will give to the people assurance of their value and safety for investment purposes. Such supervision. too. it Is believed. would tend to check 1nwise speculation and ~balIoOning" in se- rurities of that kind. which. in tho rast- has operated to the detriment of real investment buying.