The Washington herald., 1910-01-08
TAFT IN MESSAGE URGES
RAILROAD SEGREGATION
Continued from Page One.

Continued from Page One.
any additional stock whatever in compet-
ing companies controlled by them. or they
must possess 50 per cent of the stock OF
the competing company in order 10 ac-
ouire some or all OF the remaining 20 per
cent
The six railroad presidents who called
on Mr. Taft last Monday persuaded him
that such a provision as this would work
great hardship to minority stockholders
who would be robbed of the best market
for the disposal Of their stock; that is, the
company which controlled a majority Of
the stock of the roads in which these
minority stockholders have an interest
Modified His Recommendation.
AS a result of the representations made
by the railroad presidents. the message
OF the President was changed so as TO
recommend that a railroad company
holding not less than 90 per cent OF the
stock Of competing railroad could be
permitted TO acquire the balance Of the
stock OF that competing company.
One Of the important recommendations
OF the Presidents message is for the
creation of a United States court of COM
merce TO hear appeals from decisions of
the Interstate Commerce Commission.
Other recommendations are that the
Interstate Commerce Commission be en-
powered to investigate alleged excessive
rates made by railroad companies of its
own initiative without waiting for COM
rlaint 10 be fled giving shippers the
right TO demand a statement from any
railroad company of the through rate on
any shipment. and imposing a fine for
failure to comply or for misinformation;
permitting the commission TO postpone
for sixty days the time within which
an announced rate is to become effec-
tive.
Another recommendation prohibits a
railroad company from issuing capital
stock without previous payment for it
OF not less than the par value. or issu-
ing bonds or other obligations. except
one-year promissory notes. without the
previous payment OF not less than the
par value OF such bonds, or the reason
able market value. as ascertained by the
Interstate Commerce Commission.
Refers to Party Pledges.
Several times in the course Of the mes
sage the President refers to planks Of
the Republican party's national platform
of 1903. and indicates his intention of
carrying out the pledges contained In that
platform.
In that part OF his message relating
to the antitrust law. the President pre-
sents arguments. heretofore summarized.
for a belief on his part that no amend
ments to this law are necessary.
His general argument IS that the United
States Supreme Court has construed the
law in such way as 10 render unneces-
sary any legislation to exempt from
prosecution interstate business combina-
tons. which. while they may seem TO
violate the letter of the law, do not vio-
late the spirit OF il through having an
undue restraint on trade.
The President let's it be known that II
is his purpose TO have the Department OF
Justice make an investigation, through
grand juries or otherwise. into the his
tory. organization. and purposes Of all
the industrial companies with respect
to which there is any reasonable ground
for suspicion that they have been organ
ICED for a purpose and are conducting
business on a plan which is IN violation. of
the antitrust law"
An Interesting Feature.
one OF the interesting features OF the
message is Mr.. Taft's discussion Of good
trusts" and bad trusts. Apparently
he differs from the view OF his predeces-
sor that the difference between a good
trust and bad trust could be distin-
gUished.
Mr. Roosevelt believed he could make
the distinction. and pointed TO the United
States Steel Corporation as an example
of a good trust
Mr. Taft holds that the business pub
lie ought 20 rid themselves OF the idea
that such a distinction is practicable or