Los Angeles herald., 1910-02-11
PRESIDENT AND SENATE BOSS
DISCUSS PROBLEMS
BIG INTERESTS WORRIED OVER
TRUST CASES
Financial and Political Effects of Su-
preme Court Decisions Cause
Uneasiness at Wash
ington
Associated Pressl


issue of a statement dealing with the
situation that is discussed here wher-
ever two or three are gathered to-
gether. yet which apparently nobody
thus far has deemed it prudent to
make the subject of public utterance.
That situation relates to the possible
consequences, financial, industrial and
political, hinging on the decisions of
the supreme court of the United States
in the cases of the American Tobacco
company and Standard Oil
The immediate subject of last nights
conference between the president and
Mr.. Aldrich was the administration s
proposed amendments to the inter-
state commerce law, but the effect of
the supreme court decisions in the
tobacco and oil cases was discussed
also.
Meanwhile the president will speak
in New York Saturday night on the
subject, it is said of Party Pledges
and How They Should Be Kept" and
he is attempting no concealment or
modification of his intention to make
the decision of the supreme court the
guide of the governments further ac
ton in regard to corporations charged
with violations of the Sherman anti
trust law.
Bill MOI Likely 10 FdSS
The general impression here is that
the federal Incorporation bill will not
be passed at this session. All the talk
is unfavorable to its substantial prog
ress,, and Mr.. Taft recently disclaimed
any intention of attempting to force
it's passage.
But even if it were enacted in its
present form, 1t offers, in the opinion
Of members of congress and of corpo-
ration men, no material relief from the
condition that hangs on the decision in
the antitrust cases.
The bill provides that it shall not
be construed to create a shelter or
immunity for any corporation that has
violated the Sherman law
Nobody here shares what appears to
have been the popular impression
that the proposed federal incorporation
act would afford relief to corporations
directly or indirectly threatened un-
der a possible adverse decision of the
supreme court.
Nor is other legislation contemplated
that might relieve the tension.
Senator Aldrich said today: 81 can
conceive of no Legislation within the
powers of congress that can meet this
situation, either in anticipation of the
supreme courts decision or subsequent
to it."
Unless. perhaps, the repeal of the
Sherman law?" the questioner sug-
gested.
And AIdrich Smiles
The senator smiled grimly. 1t was
evident that he regarded that as out
side the domain of possibilities.
AS for the scope of antitrust cases
before the supreme court, here is what
Attorney General Wickersham said in
connection with his motion to advance
the Standard Oil case to immediate
hearing:
1.-THE tobacco case, just argued and
submitted to the court, and the Stan
dard Oil case, present to the court
practically the entire range of mod
ern industrial organizations in this
country, and substantially every fea-
ture of the so-called trust problem
in so far as it is affected by the Sher-
man act.
"It has been the policy of the gov
ernment to select a few extreme in
stances of great combinations, appar-
emily controlling the greater part of
trade and commerce in a particular
line of industry, and to make them
tests of the full meaning and applica-
tiOn of the statute.
1.-THE Standard Oil case is the most
important of all these cases, affecting,
as it does, the widest range Of COM
binations and contracts which may be
claimed to offend against the act of
congress. Under these circumstances,
and as this act in its general scope
affects an enormous number of busi-
ness and industrial organizations
throughout the country, it is of mo-
mentous Importance that this court
shall define and apply the act in ref
erence to this character of organiza-
ton"
The proverbially delicate relation
which ''the market" ''Wall street. and
the financial world generally bear to
the news and gossip of the three great
branches of the government make it
superfuous to point out the effect
which decisions of the supreme court
in these cases will have in the field of
finance.
Pathetic Eagerness
Almost pathetic is the eagerness of
those. here who are in communication
with "the market" to clutch at every
crumb Of news or gossip on this sub
ject.
Industrially, Mr.. Wickersham said to
the court, practically the whole scope
of modern corporate organization is
one way or another involved in these
cases; good trusts" and bad trusts"
apparently have a stake in the affair.
IL lile cOuTl SHOULD sustain the 1u02-
ments Of the courts below it might call
for industrial readjustments OF far
reaching effect.
Political leaders here closely reflect
ing the minds of leaders of industry
express the more or less vague hope
that the court. should its Judgment
sustain the government and be hostile
to the defendant corporations, will, in
handing down it's decision, point out
some measure of that relief which
from any point of view appears out
side the possible range of legislation.
Politically, the consequences of a
decision either way must be momen-
tous, especially so to the majority
party in the event of the defeat of
the government.
''If the trusts win, and congress is
helpless to assist in the situation either
way, where are we at?' asked a Re-
publican leader today.
This is the topic most discussed in
Washington just now. 1t is the sub
ject uppermost in every quarter. 1t
has thus far been discussed with the
soft pedal on, and, as it We're, in whis-
pers; but leaders in congress admitted
today that it would be impossible
much longer to confine it to private
conversation.
It was discussed last night by the
president and Senator Aldrich and will
be further discussed next week.
The tobacco case has been set for
argument March IA. The oil case has
been argued and is now in the hands
of the court.