The San Francisco call., 1909-12-27
FAVORS MODIFYING
ANTITRUST LAW
Taft Believes Congress Should
Enact Federal Incorporation
Act at Once

WASHINGTON. Dec. 24-Serious con-
sideration, it was announced today, is
being given by President Taft and lead
ers in congress to the question of at
tempting to enact a federal incorpora-
tion act in advance of-a final decision
in the Standard oil dissolution case.
There appears to be an important diff
ference of opinion between Taft and
his advisers, who want him to withhold
the message which he has announced
he will send to congress.
1t is understood Taft fears business
generally will suffer if the supreme
court affirms the finding of the circuit
court in the dissolution case, and that
he strongly favors what might be
termed vaccination" of the body cor
poraate by the administration of legis-
lative remedy before the evil appears.
WOULD AID ENEMIES
on the other hand, congressional
leaders fear such course would merely
supply ammunition to opponents of the
administration by giving an excuse
to charge that the force of the Taft
regime is being directed toward Great
ing 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 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
While the presidents view is shared
By congressional leaders, they recog
nize that there will be serious opposi-
tion to any legislation apparently cal
culated to narrow the scope Of the
sherman law. They believe this oppo-
sition is so strong that there would be
q protrs cted contest over such a meas
ure and that it would be the part OF
wisdom, therefore, to await the deci-
sion of the supreme court.
BELIEVES DECISION CORRECT
Taft. it is said, has reviewed person
ally the evidence in the Standard oil
ca Sc. with the result that he believes
the decision correctly interprets the
law II so he presumably expects the
decree will be sustained by the supreme
court The understanding of those with
whom Taft has discussed the case is
that he could recommend the enactment
of a federal incorporation law without
becoming amenable to a charge that
he was seeking TO prejudice the su
preme court.
That the present is ar unpropitious
time TO send such message to con-
gress and that no matter how cautious
the president might be in the wording
Of his recommendation, political issue
will certainly be made oftit is the opin-
ion of republican leaders, These do not
all agree that the supreme court will
sustain the decision without mitigating
the force Of that Interpretation Of the
Sherman law They point to the fact
that the supreme court sustained the
fight of congress TO enact the legisla-
ton contained in the commodities
clause of the Hepburn law, but that 1T
did so in a manner such as to make IT
virtually noneffective
1t is suggested as not impossible that
decision with the edge dulled" in
like manner might be handed down in
the STANDARD oil case.
SEEKS MODIFICATION OF LAW
Past decisions by the supreme court
in cases brought under the Sherman
antitrust laws have. in the main, con-
firmed the constitutionality of the law
and have given to it the broadcast ap-
plication. 1t is argued, nevertheless, in
view of far reaching effect of the
recent decision in the Standard oil case
upon 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 case prob
ably will reach the supreme court by
January 3, and that counsel for the
government and the company will con-
cur in q request for its advancement on
the docket so that it may be argued
early in March. This would give time
to the attorneys to prepare for the
arguments and give the court time to
consider the matter before its adjourn
ment in May.
If dispatch is shown in getting final
adjudication, it is probable there still
would be opportunity for congress to
consider rem eaial legislation in the