Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-01-07
IN MESSAGE TO CONGRESS HE
URGES FEDERAL CONTROL
AND PROTECTION.
DECLARES STATE LAWS
CONFLICT AND CONFUSE
Would Put All Corporations and
Trusts Engaged in Interstate Com
merce Under Government Charter
and Eliminate State controI-says
There Are Good and Bad Trusts to
Be Dealt With.

-D
Washington, Jan. 7.-President Taft's
special message dealing with amend
ments to the interstate commerce laws
looking to a more effective federal SUI
pervision of railroads, and conveying
his recommendations for the passage
Of federal Incorporation act was sent
to congress today.
The message embodies all of the sug-
gestions the president made in various
speeches or the subject. He 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 presi-
oent thinks opportunity should be CIV
en- big industrial Combinations to bring
their business once more into the zone
OF lawfulness" by taking out federal
charter under certain prescribed con-
dltlons, before it becomes necessary to
proceed against every corporation
about which there is a breath of sus-
p1cion. Briefly summerized, the condi-
tions upon which federal charters are
to be granted under the presidents
recommendations are:
Issue of stock to equal only the cash
paid in on a fair valuation of the prop
erty upon which issued.
Corporations prohibited from acquir-
ing and holding stock in other corpo-
rations except upon approval of fed
eral authorities.
Federal incorporation to be volun-
tary, but such Incorporation will not
exempt corporations from prosecution
of violations of antitrust laws.
The president says in part:
There has been a marked tendency
in business in this country for forty
years last past toward combination of
capital and f,iaiits III manufacture sale.
and transportation. The moving causes
have been several. First it has render
ed possible great economy; second, by
a union Of former competitors it has
reduced the probability of excessive
competition; and, third, if the combi-
nation has been extensive enough, and
certain methods in the treatment of
competitors and customers have been
adopted, the combiners have secured
monopoly and complete control of
prices or rates.
Some Good Trusts.
1T Is possible for the owners of a
business of manufacturing and selling
useful articles of merchandise so to
conduct their business as not to violate
the inlibitions of the antitrust law
and yet to secure to themselves the
benefits of the economies of manage
ment and of production due to the con-
centration under one control of large
capital and many plants. If they use
no other inducement than the constant
low price of their product and its
good quality. to attract custom, and
their business is a profitable one
| they violate no law. If their actual
| competitors are small in comparison
with the total capital invested, the
prospect Of new investments of cap
ital by others in such profitable bus
mess is sufficiently near and potentia.
to restrain them in the prices at which
attempt by use of their preponder-
ating capital and by sale of theil
goods temporarily at unduly low prices
to drive out of business their compet-
itors, or If they attempt, by exclusive
contracts with their patrons ani
threats of non dealing except upor
such contracts, or by other methods
of similar character, to use the
largeness of their resources and the
extent of their output compared with
the total output as a means of com.
pelling custom and frightening off com.
petition, then they disclose a purpose
to restrain trade and to establish q
monopoly and violate the act.
The object Of the antitrust law was
to suppress the abuses of business O.
the kind described.
Seeks Federal Control.
| I therefore recommend the enact
ment by congress of general law pro.
viding for the formation of corpora.
tions to engage in trade and commerc,
among the states and with foreign ma
tions, protecting them from undue in
i reference by the states and regulat tins
| their activities, so as to prevent tn,
| recurrence, under national auspices, o
| those abuses which nave arisen unde
state control Such law should pro
vide for the issue Of stock of such cor.
porations to an amount equal only t,
the cash paid in on the stock; and /
1
at fair valuation, ascertained unde
approval and supervision Of fedora
authority, after full and complet
disclosure of all the facts pertaining t.
the value of such property and the in
terest therein of the persons to whom
1t is proposed to issue stock in pay
ment Of such property. 1t should sub
ject the real and personal propert
only of such corporations to the sam
taxation as is imposed by the state
within which 1t may be situated upol
other similar property located therein
and it should require such corporation
to file full and complete reports of thei
operations with the department. q
commerce and labor at regular inter
walls. Corporations organized unde
this act should be prohibited from ac
curing and holding stock In other cor
lnorations fAxn>.s s~- ~---'-a '---->-