Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-08
THE SPECIAL MESSAGE.

President Taft, in his special Mes
sage to Congress. on the Interstat,
Commerce act. defines the term
trust" states the Intention OF tn,
Sherman antitrust act of 1880; cx.
plains the meaning of the expression
Combination In restraint OF trade
gives a brief history OF prosecutions
under the law; suggests a number OF
amendments. and states tho future
antitrust policy OF the government
The Message is really an essay, ir
which a great deal of information Is
given on topic OF ovcrshadowing i'm
portance.
President Taft takes the view that
combination per Sc is not prohibited by
law. and should not be. because 1t IS
possible for the owners of a business
OF manufacturing and selling useful ar
ticlcs of merchandise so 10 conduct
their business as not to violate the in
hibitions of the antitrust law and yet
to secure themselves the benefits or
the economies OF management and OF
production due to the concentration rn-
der one control of large capital and
many plants. But the Message says.
III they attempt by use of their pre-
pondcrating capital and by sale of
their goods temporarily at undue low
prices. to drive out OF business their
competitors; OF, II they attempt by ex-
elusive contracts with their patrons
and threats of nom dealing except upon
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 n means of compelling Gus
tom and frightening off competition.
then they disclose purpose to restrain
trade and to establish 4 monopoly, and
violate the act. The object OF the anti
trust law was to suppress the abuses of
business of the kind described. 1t was
not to Interfere with a great volume
of capital which concentrated under one
organization. reduced the cost of pro-
ductlon and made Its profit thereby.
and took no advantage of its size by
methods akin to duress TO stife compe-
titlon with it d"
Accordingly. the Message recon-
mends the enactment. by Congress. of
corporations to engage In trade and
commerce, protecting them from undue
interference by the states, and National
regulation to prevent abuses. The law,
it says. should provide for the issue
OF stock to an amount equal only to
the cash paid In on the stock; and If
the stock be issued for property, then
al fair valuation, ascertained under
approval OF federal authority 1t should
also provide that corporations organ
lied under this net should be prohibit
ed from acquiring and holding stock In
other corporations Except for special
reasons upon approval by the proper
federal authorlties). The antitrust
law against combinations In restraint
OF train can be effectively enforced only
when the national government shall
provide for the creation of national
corporations to carry on a legitimate
business throughout the United States
The Message has number of re-
concentrations relative to the Inter
s,ate Comme:oe law. One Is that
United States Court of Commerce be
established clothed with jurisdiction
over certain cases now heard by the
Interstate Commerce Commission. 1t
recommends that all litigation affect
ing the government be under the di-
rect control of the department of
Justice, and that all proceedings affect
Ing orders and decrces of the interstate
commerce commission be brought by
or against the United States 60 nomine
nnG be placed in charge OF an as
sistant encouragement acting under
the direction OF the attorney general
Pooling agreements between rail-
roads arc not condemned. unless they
operate In restraint OF trade, but it
recommends that the Commission be
empowered to investigate any NO. ase
in rates and to 0x medium. Anoth-
er Important recommendation is this
that while existing holdings of stock
be not lntcrtered with. the law should
prohibit. In the future. any company
subject TO the Interstate commerce
commission from. directly or Indirect
ly acquiring any interests of any kind
in capital stock or purchase or lease
any railroad or any other corporation
which competcs with 1t respecting bus
iness to which the interstate COM
merce act applies
The Message. finally. states the
policy of the Government:
Tho Government Is now trying to
dissolve some OF these combinations
and IL Is not the intention of the Gov
ernment TO desist in the leaEt degree in
Its effort TO end these combinations
which are today monopollzlng the
commerce OF the country; that where Il
appears that the acquisition and con-
centration OF property go To thc OK
tent OF creating monopoly or OF sub
stantinlly and directly restraining in-
tcrstate commerce. IL is not thu inten-
ton Of the Government 10 permit .Eis
monopoly 10 exist under feccrll iacor-
poration or 10 transfer to the protect
Ing wing OF the Federal Government
the state corporation now violating the
Sherman act But It Is not. aud
should not be. the policy Of the Gov
ernmcnt 10 prevent reasonable conccn-
traIion OF capital which Is necessary
to the economic development OF manu-
facturc. trade and commerce."
The Message will commend itself to
the American people as cmbodying a
safe policy. 1t discriminatcs betveen