The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1910-01-14
MESSAGE DEALS
WITH TRUSTS
Urges Closer Control Of Rail-
roads and Combinations
Asks COURT OF COMMERCE

Commerce Commission, Which
Should BE Granted More Power
Regulation Of Trusts by National
charter-Ne Change In Sherman
Anti Trust Statute Is Contemplated
Washington. Jan. 5.-President
Taft in his message to congress pro-
poses a strengthening of the inter-
state commerce law and the Sherman
antitrust law. In both cases one aim
of his suggestions is to prevent the
delay in the execution of justice now
possible. For expediting the admin
istration of the interstate commerce
law he proposes United States court
of commerce. In regard to the hand
ling of trusts he urges voluntary"
federal charter for corporations. The
court of commerce, which is to be
composed of five judges, is to be
given original jurisdiction in all cases
| for the enforcement of the orders of
/ the interstate commerce commission;
to enjoin or set aside an order of the
commission; to enforce the Elkins act
and all mandamus proceedings under
the interstate commerce law.
The president further recommends
that the power Of the commission to
initiate and defend litigation be taken
from it and lodged in an assistant at
he
troll OF the department Of justice.
President Taft favors allowing rail-
roads to make agreements specifying
| classifications OF freights and the
rates, fares and charges for the trans
portation OF passengers and freights,
subject to all of the provisions Of the
interstate commerce law. He would
compel carriers on a written demand
OF q shipper to give in writing the rate
or charge. Refusal omission or mis-
statement by the carrier should be
punished by a fine Of $3.50.
In the future no interstate road
shall directly or indirectly acquire
stock interest or puchase or lease any
other competing road except that any
road which at the passage Of this pro-
half OF the stock Of road may ac-
quire the remaining stock, and road
operating an another road unds- a
lease may acquire the ownership there
OF.
No railroad shall issue capital stock
/ iii cir Ia 1o
ment to IL OF not less than the par
value OF such stock, bond or other
obligation; or IL issued below par of
the reasonable market value thereof;
and no other thing than money shall
be taken In payment for stock, ex-
cept at fair valuation determined by
the commission. ,Improvident and
improper issue of short time notes
should be prevented and the amount OF
stocks and bonds to be issued by a
road upon reorganization should be
passed upon by the commission.
President Taft does not propose any
change in the Sherman antitrust law.
The law has been so strengthened by
recent decisions of the supreme court
that now it is an effective weapon in
the hands of the government to curb |
combinations. But the president ar
CUES that the spirit of the Sherman |
law was to prevent absolute monopoly |
and direct restraint of trade, and not |
to stand in the way of the concentra-
ton of a great volume of capital re-
ducing the cost of production. To
permit this proper organization of
capital he suggests a federal charter
for interstate corporations. This
would protect a corporation from
harmful and vexatious state interfer-
ence and only subject II to a reason
able state tax for purely local bust
ness. The corporation accepting fed
eral supervision under the. proposed
charter could carry on its own BUSH
mes in peace, always within the limits
set down by the Sherman law. Those
corporations not taking out a federal
charter would have the threat of the
ch-strengthened Sherman law
hanging over them.
This proposed law provides for the
formation of corporations to engage in
Interstate and foreign business: pro-
7ides for the issue of stock, equal only
o the paid in capital; If stock be is
iued for property then at fair valua-
ion determined under federal author
ty. The real and personal property
4 the company should be subject to
he same taxation as is imposed by
he state within which It may be sit
ated upon other similar property To-
ated therein; It should file full and
omplete reports of operation with the
apartment Of commerce and labor,
nd should be prohibited from acouir-
~ and holding stock I'm other corpo-
atoms. except such as are approved !
y federal authority.
This does not repeal the Sherman I
w, and does not permit wrongs !
hich II is the purpose of that law to
revent; but permits a continuance '
nd advance Of the highest individual r
Hciency, without permitting individ-
II abuse. The government will con- r
,ua Ste aAcrfc ~ dfre,r,o -. L n