Los Angeles herald., 1910-01-08
fsnecial 70 The HeraId.l

MI ASHINGTON, Jan. 7.-President
w Taft's much-anticipated special
" message relative to antitrust
and railroad legislation was submitted
to congress today.
The message to everyone but the
Republican regulars" was pro-
nounced disappointment. 1t was ex-
pected even by the insurgents that the
president at least would concede the
necessity of drastic antitrust leg1sla-
ton. but insurgents who have analyzed
the message carefully say tonight that
it is "a weak and Objectionable com
promise of the promises made to the
people in the Republican platform on
which he was elected"
Leading Republicans say Taft has
not kept his promises. The message IS
commonly declared to be ''spineless -
practically meaningless.
The message follows closely the fore
casts that have been made from time
to time, and in the suggested legisla-
ton as to railroads embodies all of the
suggestions that the president mas
made in his speeches on the subject.
MIR. Taft suggests no changes in the
Sherman antitrust law at this time.
The antitrust feature of the message
deals solely with the subject of federal
charters. Inc pIGSiAGllb SAAlAAAAS S4AHNS
an opportunity should be given the big
industrial combinations to bring their
business once more into the zone OF
lawfulness" by taking out federal
charter under certain prescribed con-
ditions before it becomes necessary 10
proceed against every corporation
about which there is breath of sus-
picion.
1T is the duty and the purpose of the
executive" says the message, to dl-
rect an investigation by the depart
n1ent of Justice through the grand jury
or otherwise, into the history, organl-
zation and purpose of all the Industrial
companies with respect to which there
is any reasonable ground for suspicion
that they have been organized for
purpose and are conducting business
on a plan which is in violation of the
antitrust law"
Would Cause Halt
Such a wholesale investigation ana
possibly prosecution, the presldent
points out, however, would result IN
serious disturbances and produce a
halt in our present prosperity that VIII
cause suffering among the lhhocehc
many for the faults of the guilty rev..
The conditions upon which iederdl
charters are to be granted undeT tle
nresident's recommendations are these:
THE issue of stock to be to an amount
eoual only to the cash paid in on the
stock or if stock Q issued Tor prop
er+v then at d fair valuation, ascer-
famed under approval and supervisor
of federal authority, after a luil anu
eomplete disclosure OF all the IdCts dp-
,,ortainine to the value of the property
prl p,6 the interest in it of the persons
~ whom the stock is to be issued.
f.orhorations taking out federal chdf-
t,,rs are 70 be prohibited from acqulr-
ing and holding stock in other corpora
tie9,e avceDt for special reasons upon
.,nrrovaI bv the proper federal authorl-
ties. Full reports of operations are To
he made to the department OF collllI @ &c
and labor at regular Intervals. ne
federal incorporation is to be voluntary
1,,1+ tbe nresident feels that most of the
rornorations will be glad of the oppor-
t,Initv TO reform their business methods
if given this opportunity. OtherWlse
the department of justice will lnVestl-
cate them. Nothing in the federal
charters is to exempt any corporation
from prosecution for violations of the
trust law.
To Establish Court
Tn that portion of his message deal
ing with changes in the interstate com
merce laws, the president recommends:
The establishment of a United States
court of commerce of five judges 10
hear and determine appeals from the
interstate commerce commission, the
only appeal from this court lying in
the United States supreme court.
The commission is to be relieved Of
prosecuting cases in the courts, this
duty being placed with the department
of justice.
Pooling arrangements as to rates to
be allowed under direct supervision Of
the commission.
The commission to be empowered to
pass upon freight classifcations.
The commission to be empowered to
hold up new rates or classiticatiOns by
railroads until an inquiry can be made
as to their reasona bleness. If found to
be unreasonable the commission may
forbid the increase.
Shippers to be given the choice of
established routes on through freight.
From and after the passage of the
amendments it is provided that no
railroad shall acquire any stock or
interest in a competing line except
that where a road already owns so
per cent or more of the stock of an
other road it may complete the pur-
chase of all the stock. Also, in cases
where one road is operating another
under a lease of more than twenty
five years duration it shall have a
right to acquire the demised road. Al
lowing these acquisitions of stock does
not exempt any road from prosecution
under the antitrust law.
Stocks must be issued at par value
for money paid or for property or
services, rates at full value, under an
inquiry by the federal authority, who
shall supervise all stock and bond
issues.
Following is the message: