The Birmingham age-herald., 1908-12-27
President-EIect Taft Outlines New Scheme With Three
 Leading Features
SPECIAL BUREAU ID BE
 CREATED ID AID WORK
Secretary straus lndorses the Plan and Says 1t Will Result In Great
 Good to All Corporations
 and People Concerned.

Washington, December 26.-(special)- There was much interest shown here In special dispatches from Augusta, Ga, purportng to outline Presidents elect Taft's plan for greater control of cor porations. The plan given has three car- 1inal features
 l. Decreasing the powers of the inter- state commerce commission, clothing 1t only with quasl-judcial functions.
 2. Increasing the powers of the bureau of corporations in the department of com merce and labor by giving it administra- tive Jurisdiction over all corporations do- ing an interstate business.
 3. Creating a special bureau under the department of justice to assist the bureau of corporations on all legal and tech nical matters.
 This plan of better control of corpora tions does not include federal license, which has been recommended by the bu- reau of corporations and indorsed by Sec retary Straus of the department of labor and commerce. Judge Taft is said to favor some provision which will compel corporations to submit themselves to the most thorough scrutiny by agents of the bureau.
 Grand Scheme.
 "It is a grand. good scheme" said MT. Straus. Judge Taft's idea is splendid and is certain to result in great good. Tn my last report to Congress I pointed out the need of some central body which would have the right to deal with cor porations and combinations There has been, largely, as a result of the work of the present administration. an ad- vance of the attitude of the financial lea ders of the country and d recognition of the hduciary gliasacter of their com mereial powers. accompanied by willing ness to cooperate with the government in correcting evils. There should be d definite system os active, positive su- pervision and regulation through an ad- ministrative office. Such a system has the supreme advantage that it gets at results by cooperation rather than op- position. It is constructive not destruc- tive.
 Corporate Reform.
 "The five years experience of the bu- reau in it's dealings with corporate af- fairs has made it clear that the greatest advance toward corporate reform must come through some general system of publicity The logicalN conclusion from the work of the bureau thus far points to the imperative need of a federal com structive system for the positive super vision of interstate corporations to the primary end oL securing efficient public ity in corporation affairs.
 Tt is becoming more and more obvious that the work of the government in regu- lating corporations should not be directed at the mere existence of the corporation itself, as such; 1t should deal rather with the way in which the combination powers are used, so as to prevent as far as pos sible the misuse of these great industrial forces. Only such combinations as are formed for wrongful purposes should be brought under the condemnation of the law. It is useless to ignore the operations of economic law that have brought about ;he present concentration in business"
 Opposition Ahead.
 MT. Taft's plan for a sweeping reorgan- ization of the whole scheme of railroad control embodied in the Hepburn law will meet with opposition from the interstate con merce commission, and in Congress there will be considered the new legisla- ton to- carry 1t into effect.
 Commissioner Prouty is the only mem- Der of the interstate commerce commits sion who favors making that body a iu- dicial one purely. The question of whether a commerce court or a commission pri- mariy administrative to control the rail- roads was one of the most vexed prob lems before Congress during the consid- eration of the Hepburn bill, and the lat ter plan was determined on after a lengthy discussion. Under this bill the commission is an administrative one with quasi judicial functions
 1t has been conclusvely held that the business of fixing rates and charges is legislative, not judicial; it is the laying down of rule of future conduct and can be discharged only by the legislature or by some authority designated by the leg islature tc which certain legislative pow CTS are delegated. Courts have no power or right to make rates.
 Much Wasted Energy.
 By the new plan hopes are entertained that much of the wasted energy which is now the rule in the regulation of -corpor- ations will be done away with. At present the operations of the interstate commerce. commission, the bureau of corporations and the department of justice frequently overlap and one of the three sometimes finds that it Is only repeating the work of the other. By the new organization the powers and duties of the bureau of cor porations win be so increased that the bureau will be the originator of all cases dealing with corporations. and this will make fl impossible to have any repetition or overlapping in the work.
 
 Will Christen Battleship.
 Wilmington, Del. December 26.-Goyer-
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