The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-01-03
In His Communication to Con-
gress He Will Ask That Body
To Pass Federal lncorpora-
tiOn Law,
SHERMAN ACT is TO
REMAIN ON STATUTES
New Legislation Will Provide
For Control Over Issues of
Stock and Force Secrets
Into the Open.

Chicago, Jan. Sin its issue Of to-
day the Tribune prints an article by
John Callan O'Laughlin, outlining the
forthcoming corporation message OF
the president. The dispatch, sent
from Washington. is. in part. as fol-
lows:
1t is possible tonight to present the
full details of the corporation mes
sage which President Taft will send
to congress next Wednesday. The
message also deals with the propos-
ed amendments of the interstate COM
merce law.
With respect to the corporations
the presidents views, summarized,
are:
No amendment to the Sherman anti
trust law is necessary.
Many large corporations are violat-
| ing the Sherman law.
| 1t is the duty of the executive to
enforce the law, but if this be done.
as is his intention, a panic or COM
mercial chaos may be precipitated.
Asks Federal Incorporation Law.
| AS a refuge for the large combi-
nations he recommends a national in
corporation law. He says the law
should provide:
| l. For voluntary incorporation.
2. For supervision by the bureau
of corporations of such combinations
| oc Soc,,ra pot{ono1 ipcorDorotfor
3. For control by the bureau of
corporations of all issues of stocks
and bonds which shall be paid for in
cash, property, or services.
| 4. Prohibition of a corporation to
own stock in competing corporation.
| 5. For annual reports covering the
financial condition, the business or.
ganization. and corporate transactions
of the corporation.
6. For the safeguarding of bust
ness secrets, while, at the same time,
providing for the publication of all
facts so far as they may be in the
public interest.
| What Law Would Provide.
The president will declare that, in
his opinion:
| l. The law is constitutional.
2. 1t will not lead to any greater
GENERALIZATION of power.
5. 1t will enable the large corpor-
ate combinations of capital to oper.
ate lawfully for their own economic
advantage and to have a public stand
/ ing.
4. 1t will enable people to share
in economy of administration the
cheapness of products.
| ). 1t viii insure efficient regula-
tion in the interests of the public.
| 6. 1t will eradicate the trust evils
Z. 1t will prevent a monopoly.
s. 1t will produce fair competition.
Reviews Sherman Antitrust Law.
The message begins with a discus
sion of the Sherman antitrust law
reviews the decisions rendered by the
supreme court of the United States in
connection with the construction of
this law.
1t specifically mentions the case of
the United States VS.. the E. c. knight
company. The president says that
owing to the narrow scope of the
pleadings of counsel in this case, the
court was unable to take into con-
sideration the questions which it
ought to have been able to consider,
and that the court consequently was
compelled to hold that the sugar
trust did not come within the limits of
the law.
This case, however did not cover
combinations for purely manufacture
ing purposes. Later decisions have
construed the law to cover effective
ly almost every phase of industrial
operations.
Pledges Continued Fight.
II these decisions are to be up
held by the decisions to be handed
down later (the president does not
refer specifically to the Standard Oil
and tobacco trust prosecutions, but
he unauestionably has them in mind
it will be the duty of the executive to
proceed against many corporations
which are violating the statute.
The president says that while, un.
der the common law, only contracts
| between combinations would be in.
hibited as in restraint Of trade which
are unreasonable, practically the same
result has been attained by the de-
cisions of the court, which has held
that incidental and indirect restraint
is not inhibited
| He believes this to be proper. The
law, as 1t exists, is efficient to put
out OF business a vast number of cor.
porations as they are now organized
Under the circumstances he does not
consider any amendment to the Law
lreally necessary.