The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1910-01-08
Railroads Need CURLING
Says the President

fcontiHMed From First RA9e3
necessary to proceed against every
great corporation about which there Is
breath Of suspicion.
ut is the duty and the purpose OF
the executive" says the message. to
1-rect an investigation by the depart
ment of justice through the grand Jury
or otherwise into the history, organiza-
! ton and purpose of all the Industrial
tcompanies with respect to which there
is any reasonable ground for suspicion
that they have been organized for a
purpose, and are conducting business
on q plan which is In violation of the
antitrust law"
SERIOUS DISTURBANCE.
Such a Wholesale investigation and
prosecution, the president points out
would result in serious disturbances
and produce halt in our present
prosperity that will cause suffering
and strained circumstances. among the
innocent many for the faults of the
guilty few.
The question which / wish in this
message to bring clearly to the con-
sideration and discussion of Congress
whether, in order to avoid such pos
sible business, combinations cannot be
done by which the business combina-
tions may be offered means, without
great financial disaster because of
changing the character, organization
and extent of their business into one
Thin the lines of the law under fed.
eral control and supervision, securing
compliance with the antitrust stat
utes."
The conditions upon which federal
charters are to be granted under
the presidents recommendations are
these:
The issue of stock to be an amount
equal only to the cash paid in On the
stock, OF if stock be issued for prop
| erty, then at a fair valuation, ascer-
| tanned under approval and supervision
of federal authority after full and COM
plete disclosure of all the facts apper-
| tanning to the value of the property
| and the interest in it of the persons
to which the stock is to be issued.
| CANNOT HOLD STOCK.
Corporations taking federal charters
are to be prohibited from acquiring
and holding stock in other corpora
| tons, except for special reasons upon
approval by the proper federal authori-
ties. Full reports of operations are to
| be made to the department of com.
merce and labor at regular intervals.
The federal incorporation is to be vol.
untary, but the president feels that
most of the corporations will be glao
of the opportunity to reform their
business methods if given this oppor
tunity. Otherwise the department OF
! justice will investigate them. Moth
| ing in the federal charters is to
exempt any corporation from prosecu
| ton for violations of the antitrust law
In that portion of his message deal.
| ing with changes in the interstate
commerce laws the president recon-
mends:
| The establishment of "a United
States court of commerce of five
| judges to hear and determine appeals
from the interstate commerce commits.
sion, the only appeal from this court
lying in the United States supreme
| court.
The commission is to be relieved OF
prosecuting cases in the courts, this
duty being placed in the department OF
justice.
Pooling arrangements as to the rate
to be allowed under direct supervision
Of the commission.
| The commission to be empowered to
pass upon freight cIass1tications.
The commission to be empowered
to hold up new rates or classifications
by railroads until an inquiry can be
made as to their Responsiveness. II
found to be unreasonable, the commits
sion may forbid the increase.
| Shippers to be given the choice OF
established routes on through freight
From and after the passage of the
amendments, it is provided that nc
railroad shall acquire any stock Or in
terest in a competing line, except that
where a road already owns fifty pei
cent or more of the stoc-- of any
other road, it may complete the pur
chase of all the stock. Also in cases
where one road is operating another
under a lease of more than % years
duration, it shall have a right to &C
quire the demised road. Allowing this
acquisition of stock does not exempt
any road from prosecution under the