The Lee County journal. (Leesburg, Ga.) 1904-19??, 1910-01-14
President Would Protect Corpor-
ations from State Interference.
MODIFIES TRAFFIC IDEAS
Taft Would Prevent National Combines
From Acquiring Stock Of Competitors
Except by Consent.


y. Washington, D. C.--President Taft's
special message, dealing with amend
ments to the interstate commerce
laws, looking to a more effective fed
eral supervision of railroads, and con-
veying his recommendations Tor the
passage OF a federal Incorporation
act, was transmitted to congress and
read in the house, the senate not be-
ing in session.
The message followed closely the
forecasts that have been made from
time to time and in the suggested
legislation as to railroads, embodies
all of the suggestions that the presl-
dent has made from time to time in
his speeches on the subject
Mr. Taft suggests no changes in
the Sherman antitrust law at this
tiY.e. The antitrust feature OF the
message deals solely with the cub
ject of federal charters. The presi-
dent thinks that an opportunity
should be given the big industrial
combinations to bring their business
once more into the zone OF lawful
ness'' by taking out federal char
ter under certain prescribed condi-
lions before it becomes necessary to
proceed against every great corpora
ton about which there is a breadth
of suspicion.
Duty and Purpose.
sit is the duty and the purpose OF
the executive say the message, TO
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
gained for d purpose and are con-
Quoting business on plan which is
in violation of the antitrust law"
" Such a wholesale investigation and
possible prosecution, the president
points out, would result in serious
disturbances and produce halt IN
our present prosperity that Will cause
suffering and strained circumstances
among the innocent many for the
faults of the guilty few
1.-The question which | wish IN this
message to bring clearly to the con-
sideration and discussion OF congress
is whether, in order to avoid such
possible business danger, something
cannot be done by which these busl-
ness combinations may be offered
means, without great financial dis
turbance, of changing the character,
organization and extent of their bust
ness into one within the lines OF
the law under federal control and
supervision, securing compliance
with the antitrust statutes"
Conditions Made.
The conditions upon which federal
charters are to be granted under the
recommendations are
these. The issue of stock to be an
amount equal only to the cash PAID IN
on the stock, or If stock be issued
for property, then at fair valuation,
ascertained under approval and super
vision of federal authority after full
and complete disclosure OF all the
facts appertaining to the value OF
property and the interest in it OF the
persons to which the stock is to be
issued.
Corporations taking federal char
ters are to be prohibited from ac-
Ouiring and holding stock in other
corporations, except for special rea-
sons upon approval by the proper
federal authorities. Full reports OF
operations are to be made to the
department Of commerce and labor
al regular intervals The federal in
corporation is to be voluntary, but the
president feels that most OF the cor
porations will be glad Of the oppor-
tunity to reform their business meta
DDS if given this opportunity Other
wise the department Of justice will
investigate them. Nothing in the fed
eral charters is to exempt any cor
poration from prosecution for viola
tions of the antitrust law.
In that portion OF his message deal
ing with changes Of the interstate
commerce laws the president recon-
mends:
Special Court.
The establishment Of a United
States court of commerce Of five
Judges to hear and determine appeals
from the interstate commerce commits
sion, the only appeal from this court
lying in the United States supreme
court.
The commission is to be relieved |
OF prosecuting cases in the courts,
this duty being placed in the depart |
ment of justice.
The commission To be empowered |
to hold up new rates or cIassiilcations
- .og1~oodo until an fnaufrT can he |