Omaha daily bee., 1910-01-08
ALI Certificates Should Represent
Cash or Its Equivalent.
OPPORTUNITY FOR COMBINATION
Big Corporations Should Be Given
Chance to Change Methods.
SHERMAN LAW Is TO STAND
Present Act 20 BE supplemented by
Measure for Federal IncOrpOrR-
tiOn of Large Interstnte
Companies.
The fun text Of the presidents message
will be found on pages IL ana Ia.

Will be found on pages IL ana IL.
WASHINGTON Jan 7.-President Tafts
special message to congress recommending
amendments to the interstate commerce
and the antitrust laws was laid before
A. tho house Of representatives today.
y The reading of the document was begun
without delay and members on both the
republican and democratic sides followed
the clerk closely. Unusual quiet prevailed
during the reading
Representative Townsend of Michigan,
who was among the most attentive listen
ers, understood 10 nave in mis- pos
session the administration bill amending
the interstate commerce law in accordance
with the recommendations of the president
This win be introduced next Monday.
The message was referred to the appro-
pirate committees.
The message followed closely the fore
casts that have been made srom time to
time and in the suggested legislation as
to railroads embodies all of the suggeS-
tions that the president has made from
time to time in his speeches on the sub
ject.
No Change in sherman Law.
A 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 combina-
tons to bring their business once more
into the zone Of lawfulness'' by taking
out a federal charter under certain pre-
scribed conditions before 1t becomes necss-
sary to proceed against every corporation
. about which there is a breath Of suspicion.
1T is the duty and the purpose Of the
executive" says the message Ito direct
an investigation by the Department of
Justice, through the grand jury or other
wise into the history, Organization md
purpose of all the Industrial companies
with respect to which there is any reason
able ground for suspicion that they nave
been organized for purpose and are 5on-
Quoting business a plan which Is In
violation Of the antitrust law"
EFFECTS of Wholesale Prosecution.
: Such wholesale Investigation and pas-
' sible prosecution, the president points cut,
however, would result in serious disturb
ances and produce a halt in our present
prosperity that will cause suffering aid
strained circumstances among the inno-
cent many for the faults of the guilty
Few.
''The question which I wish this message
10 bring clearly to the consideration and
discussion OF congress is whether in order
(o avoid such possible business danger,
something cannot be done by which these
business combinations may be Offered a
means, without great financial disturbance
OF changing the character, organization and
extent of their business into one within
the lines of law under federal control and
supervision, securing compliance with the
antitrust statutes"
Tho conditions upon which federal char
ters are to be granted under the presi-
dents recommendation are these:
The issue OF stock to be an amount
equally only to the cash paid In on the
stock, or II stock be issued for property,
then at fair valuation ascertained under
a private supervision of federal authority
after a full and complete disclosure Of all
the facts appertaining to the value Of the
property and the interests in 1t Of the per-
Lsons TO whom the stock is to be issued.
hstrtctures on Federal Corpora atiOns.
Y corporations taking federal charters are
TO be prohibited from acquiring and hold
ing stock in other corporations, except
for special reasons upon approval by the
proper federal authorities. Full reports of
operations are to be made to the Depart
ment of Commerce and Labor at regular
Intervals The federal Incorporation is to
be voluntary, but the president feels that
most Of the corporations will be glad OF
the opportunity 10 reform their business
methods II given this opportunity. Other
wise, the Department OF Justice will in
vestigate them. Nothing in the federal
charters is TO exempt any corporation from
prosecution for violations of the antitrust
law.
In that portion OF nis message dealing
with changes In the interstate commerce
laws, the president recommends:
nR tied
court of commerce OF five judges to hear
and determine appeals from the interstate
commerce commission, the only appea
from this court lying in the United States
supreme court.
The commission is to be relieved OF pro
scouting cases in the courts, this dutS
being placed in the Department OF Justice
Pooling arrangements as to rates to b,
allowed under direct supervision of the
commission.
The commission to be empowered to pas,
upon freight classifieations.
The commission to be empowered TO holC
up new rates or classifications by railroads
until an inquiry can be made as to thei
reasona bleness. II found to be unreason
able. the commission may forbid the in
crease. .,...
shippers to be given the choice Of es
tabnshed routes on through freight,
stock In Competing Lines.
From and after the passage OF tn
amendments. It is provided that no rail
road shall acquire any stock or interest 4
a competing line. except that where roa'
already owns 30 per cent or more OF tn
stock OF another road, It may complete tn
purchase OF all the stock. Also in case
where one road is operating another unde
90 lease of more than twenty-five year
duration. II shall have right TO acqulr
the demised road, Allowing these aoqui