The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-01-07
Mr.. TAFT SCORES.
Nothing Weak Kneed About His
Special Message.
ROosevelt's Policies Have Not
Been Forgotten.
RAILWAY REGULATION
President Believes 1t Should Be
Comprehensive.
FavOrs Establishment Of a
Special Commerce Court.
CORPORATE CONTROL.
Federal Charters Suggested for
Nation Wide Concerns.
Antitrust Law Would Still
Apply to Them.
Favors Establishment of
Special Commerce Court.
CORPORATE CONTROL.
Federal Charters Suggested for
Nation Wide Concerns.
Antitrust Law Would Still
Apply to Them.

Washington, Jan. 7.-President Taft's
special message dealing wit amend
ments to the interstate commerce laws
looking to a more effective federal su-
pervision of railroads and conveying his
recommendations for the passage of
federal Incorporation act was trans
mitted to congress today anC read in
the house, the senate not being in ses-
sion.
The message followed closely the
forecasts that have been made from
time to time and in the suggested legis-
lation as to railroads embodies all of
the suggestions that the president has
made from time , time in his speeches
on the subject. Mr.. Taft suggests no
changes in the Sherman antitrust law
at this time. The antitrust feature of
the message deals solely with the sub
ject of federal charters
The president thinks that an oppor-
tunity should be given the big indus
trial combinations to bring their busi-
ness once more into the zone of law
fulness." by ta,-'~g out a federal char
ter under certain prescribed conditions,
before it becomes necessary to proceed
against every corporation about which
there is a breath of suspicion. It is the
duty and the purpose Of the executive,
says the message. Ito direct an inyesti-
cation by the department of Justice
through the grand jury or otherwise
into the history organization and DUR
pose of all the Industrial companies
with respect to.which there is any rea-
sonable ground for suspicion that they
have been organized for a purpose and
are conducting business on a plan
which is in violation of the antitrust
law
Would Halt Prosperity.
Such wholesale investigation and
possibly prosecution. the president
points out however, would result in
serious disturbances and produce a
halt in our present prosperity that
VIII cause suffering and strained cir
cumstances among the innocent many
for the faults of the guilty few
THE question which 1 wish in this
message to bring clearly to the con-
sideration and discussion of congress
is whether IN order to avoid such a
possible business disaster something
can not be done by which these buSi-
ness combinations may be offered a
means without great financial distur-
bance of changing the character, or
ganization and extent of their busi-
ness into one within the lines of the
law under federal control and super
vision, securing compliance with the
antitrust StatuteS.''
The conditions upon which federal
charters are to be granted under the
presidents recommendations are
these:
The issue of stock to be to an
amount equal only to +he cash paid
in on the stock or if stock be issued
for property then at a fair valuation
ascertained under approval and sum
ervision of federal authority, after a
full and complete disclosure of all the
facts appertaining to the value of the
property and the interest in it of the
persons to whom the stock is to be
Issued
Corporations taking federal char
ters are to be prohibited from acquir-
ing and holding stock in other cor
poFations, except for special reasons
upon approval by the proper federal
authorities. Full reports of opera
tions are to be made to the. depart
ment of commerce md labor at regu-
lar intervals. The federal incornora-
ton is to be voluntary. but the presi-
dent feels that most of the corpora
tions will be glad of the opportunity
to reform their business methods if
given this opportunity. Otherwise
the department of justice will inves-
tigate them. Nothing in the federal
charters is to exempt any corporation
from prosecution for violations of the
antitrust law
Interstate Commerce Law.
In that portion of his message deal
commerce laws, the president recon-
mends:
The. establishment of a United States
court of commerce of five Judges tc
hear and determine appeals from the
interstate commerce commission the
only appeal from this court living in
the United States supreme court
The commission is to be relieved n,
prosecuting cases in the courts, this
duty being placed in the department
of justice. Pooling arrangements as tc
rates to be allowed under direct slIper-
vision of the commission.
The commission to be enapowered +c
pass upon freight classifications.
The commission to be empowered r.
hold up new rates or classifieations by
railroads until an inquiry can be made
as to their reasona bleness If found tC
be unreasonable the commission NAV
forbid the increase. Shippers to ht
given the choice of established route.
on through freight.
From and after the passage of tn,
amendments, it is provided that no rail
road shall acquire any stock or interes
In a competing line, except that wher,
a road already owns so per cent or NOR,
of the stock Of any road. it may com
plete the purchase of all the stock
Also in cases where one road is operat
ing another under a lease of more tha,
25 years duration, it shall have a righ
t, acquire the demised road AIlowin,
these acquisitions of stocks does not ex