The Detroit times., 1910-01-08
wan rs COMMERCE
bOOY's POWER TO
Be SWEEPING
President Taft Urges Passage, of Leg
islation To Create Special Court
To Regulate Railroads--Aims
Blow at Stock-Watering.
Recommends Incorporation Act
Which Will Force Monopolists To
Obey or Be 0utlawed.

WASHINGTON. Jan. THE open
Ing gun In President Taits campaign
for constructive legislation was nred
Today. when his special ne sage rec
ommending amendments TO the inter
state commerce law and-legi gisiation,
supplementary To the Sherman anti
trust law was read In congress.
Foremost among the president's
recommendations are: A United states
court Of commerce; the prosecution
and defense OF cases brought Dy ana
against the interstate commerce COM
mission by lie department. oil justice
instead OF by special attorneys; pro-
vision forbidding railroads acluiiihS
capital stock In competing lines;
provision forbidding the issuance OF
capital stock without payment OF the
par value, or unlesa IL Is founded OH
ponafide physical valuation II proper
ty; and voluntary inoorpoi alton Tor
concerns engaged in interst te com
merce
In outlining the jurisdiction of tho
proposed court OF commerce ne presi-
dent provides that practically all
cases except those entaiiing the col
lection OF a penalty or the innicaon
OF criminal punishment wien Involves
the interstate commerce commission
shall be tried by the court. and tnat
its decisions shall be reviewed only
upon appeal to the United States SUI
preme court. The appointment oil hVe
additional circuit judges whose salary
while sitting In the commerce court
shall be $4,000 year. is aiso reco'n-
mended.
Distribution OF Judoee.
II Is recommended that t-ese judges
be distributed to those circuits where
there Is at the present time the
greatest volume OF bus ness, sucb as
the second, third. fourth, ~eventh, ana
eighth. When not sitting In the. coa's
OF commerce they shall De assigned W
the chief justice OF the supreme court
To work In the regular circuit courts.
The president further asks that the
interstate commerce commission De
given the power to alter rates sub
mitted by carriers. aud to prescribe
the maximum rate in case those SUI
mitted are found exc bitant. III now
ever the commission fails TO invesu'
.ate a rate submitted WITHIN sixty
days. the rate shall tase Effect.
The message also recommends that
shippers lie given the. right to select
nne or two. or More possible routes ;o'
tao shipment OF their goods.
The handling o. Interstate commerce
cases by the department OF justice Is
Lccessary. the president says. because
the present system confuses the Judi
tal. executive and legislative frnc-
tons In one body--the interstate com
.nerce commission and robs 1t OF Its
judicial attitude.
The president believes that the pro-
vision forbidding railroads from ac-
curing stock In competing lines should
not be made applicable 10 roads now
holding more than fifty per cent of
competing lines. II such roads desire
10 complete the purchase of the out
standing etock OF the already controll-
ing roads.
Restriction Of Stocks.
Stock and bond issues are discussed
pt length I'm the message and IL is
recommended that legislation be
passed iorbidding the issuance OF
stocks and bonds until their full par
value shall have been paid to the
issuing corporation. Any issues of
stocks or bonds made by corporations
reorganizing under the proposed
statutes are commended TO be placed
directly under the supervision OF toe
Interstate commerce commission.
These provisions are aimed at the very
root OF the stock-watering evil
The presidents recommendation for
federal incorporation law outlines a
voluntary measure. but one which he
says will force big corporations To one
If three things:
First they must resolve themselves
ITO their component parts In the diff