Reporter and farmer. [volume] (Webster, Day County, Dakota [S.D.]) 188?-1946, 1910-01-13
President Suggests Amendments
in Message to Congress.
FAVaRS A COMMERCE COURT
Also Recommends Federal Char
ters for Corporations.

amendments to the interstate com
merce laws looking to a more effective
federal supervision of railroads and
conveying his recommendations for
the passage of federal incorporation
act was transmitted to congress and
read in the house, the senate not be,
Ing in session.
Mr.. 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. The president thinks that
an opportunity should be given the
big industrial combinations to bring
their business once more into the
zone of lawfulness" by taking out a
federal charter under certain pre-.
scribed conditions before it becomes
necessary to proceed against every
corporation about which there is a
breath of suspicion.
ut is the duty and the purpose of
the executive" says the message, ito
direct an investigation by the depart.
ment of justice, through the grand
jury or otherwise, into the history, or
ganization and purpose of all the in
dustrial companies with respect to
which there is any reasonable ground
for suspicion that they have been or
ganized for purpose and are conduct
ing business on plan which is in vio-
lation of the antitrust law"
Such a wholesale investigation and
possible prosecutions, the president
points out, however, would result in
serious disturbances and produce
halt in our present prosperity that will
cause suffering and strained circum-
stances among the innocent many for
the faults of the guilty few.
"The question which l wish in this
message to bring clearly to the con-
sideration and discussion of the con-
gress is whether, in order to avoid
such possible business danger,
something cannot be done by which
these business combinations may be
offered means, without great finan-
cial disturbance, Of changing the char.
acter, organization and extent of their
business into one within the lines of
the law under federal control and su.
.pervision, securing compliance with
the antitrust statutes"
The conditions upon which federal
charters are to be granted under the
presidents recommendations are
these:
Method Of incorporation.
The issue of stock to be to an
amount equal only to the cash paid in
on the stock, or, II stock be issued
for property, then at fair valuation,
ascertained under approval and SUI
pervision of federal authority, after a
full and complete disclosure of all the
facts appertaining to the value of the
property and the interest in 1t of the
persons to whom the stock is to be
issued
Corporations taking federal char
ters are to be prohibited from acquir.
ing and holding stock in other COR
porations except for special reasons,
upon approval by the proper federal
authorities. Full reports of operations
are to be made to the department of
commerce and labor at regular inter
walls. The federal incorporation is to
be voluntary, but the president feels
that most OF the corporations will De
glad of the opportunity to reform their
business methods II given this oppor-
tunity. Otherwise the department Of
Justice will investigate them. Moth
ing in, the federal charter is to ex-
empt any corporation from prosecu-
tion for violations Of the antitrust
law.
In that portion of his message deal
ing with changes in the interstate
commerce law the president recon-
mends:
The establishment of a United
States court of commerce of five
judges to hear and determine appeals
from the interstate commerce com.
mission, the only appeal from this
court lying in the United States SUI
preme court.
The commission is to be relieved Of
cases In the courts. this
duty being placed In 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 classifications
by railroads until an inquiry can be
made as to their reasonableness. II
found to be unreasonable the COM
mission may forbid the increase.
From and after the passage Of the
amendments 1t 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 1t may, complete the pur.
chase of all the stock. Alco in cases
where one road Is operating another
under lease of more than twenty
1ive years duration II shall have
right to acquire the demised road.
Allowing these acquisitions Of stock
does not exempt any road from prose
cution under the antitrust law.