Los Angeles herald., 1909-12-27
FEAR OPiNi0NiN
OIL TRUST CASE
TAFT BELIEVES ADVERSE DE-
CISI0N WILL BE HARMFUL
WANTS REMEDIAL LAW BEFORE
FINAL JUDGMENT
President Would Have Congress
"VaccInate" Body Corporate in
Advance Of Supreme Courts
Verdict on Appeal
Associated pressl

WASHINGTON Dec. &C. - Serious
| consideration. it was announced today,
is being given by President Taft and
leaders in congress to the question of
enacting a federal Incorporation act in
advance of a final decision of the Stan
dard Oil dissolution case.
There appears to be an important
difference of opinion between Mr.. Taft
and his advisers. who want him to
withhold the message which he had
announced he will send to congress.
1t is understood Mr.. Taft fears busi-
ness generally will suffer If the SUI
preme court afflrms the finding of the
circuit court i'm the dissolution case
and he strongly favors what might be
| termed vaccination" of the body cor
porate by the administration of legis-
| latiVe remedy before the evil appears
on the other hand, congress leaders
| fear such a course would merely sup
| ply ammunition to opponents of the
administration by giving them an eX-
cuse to charge that the force of the
| Taft regime is being directed toward
creating shelter for monopolies.
| If the president should submit his
recommendation soon after congress
reconvenes, and should follow what is
said to be his present inclination, he
would ask for the passage of a federal
corporation law without delay, on the
ground that honest business is men
aced under the Interpretation of the
| Sherman antitrust act given by the
circuit court decision In the Standard
! Oil case.
Serious Opposition to Change
While the presidents view is shared
| by congressional leaders, they recog-
nize there will be serious opposition to
| any legislation apparently calculated to
narrow the scope of the sherman law
They believe this opposition is so
strong there would be protraoted
! contest over such measure. and it
! would be the part OF wisdom, there
fore, to await the decision of the su-
preme court.
Mr.. Taft it is said. has reviewed per-
sonally the evidence i'm the standard
Oil case, with the result he believes the
decision correctly interprets the law. If
so he presumably expects the decree
will be sustained by the supreme court.
The understanding Of those with
whom Mr.. Taft has discussed the case
| is he could recommend the enactment
of federal Incorporation tax without
! becoming amenable to a charge he was
seeking to prejudice the supreme court.
That the present is an unpropitious
| time to send such a message to con-
gress and that no matter how cautious
the president might be in the word
ing of his recommendation, political is
sue certainly would be made of 1t, is
the opinion of Republican leaders.
These do not all agree that the su-
! pTeme court win sustain the decision
without mitiagting the force OF that
Interpretation of the Sherman law.
Clause Ineffective
They point to the fact the supreme
court sustained the fight of congress to
enact the legislation contained in the
commodities clause of the Hepburn
law. but that It did so in a manner
such as to make it virtually nonef-
| fective.
1t is suggested as not impossible a
decision with the edge dulled" in like
manner might be handed down in the
Standard Oil case.
Decisions by the supreme court in
cases brought under the Sherman
antitrust law, have in the main, con-
hrmed the constitutionality of the law
and have given to 1t the broadest ap-
plication. 1t is argued nevertheless, in
view of the far-reaching effect of the
recent decision in the Standard oil
case on corporations generally, both
| good and bad, congress may well be
asked by the president to modify the
force Of the act.
The record in the Standard oil case
| probably viii reach the supreme court
| by January 3, and counsel for the
government and the company prob
ably will concur in a request FOR its
advancement on the docket, so it may
be argued early in March. This would
give Just time to the attorneys to pre-
pare for the arguments and give the
court time to consider the matter be-
fore it's adjournment in May.
If dispatch is shown in getting final
adjudication. it is probable there still
would be opportunity for congress to
consider remedial legislation in the
present session.