The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-01-07
Therefore the President Urg-
es That Corporations Be
Operated in Future by Fed
eraI Charters.
CENTRALIZED POWER
is STRONGLY URGED
State Control of Corporations
Vigorously Opposed, This
Causing, He Contends Many
Of the Abuses,
(American News Service)

(American News SerVice)
Washington, Jan. 7.-President Taft
today sent to congress his long delayed
message on interstate commerce and
antitrust legislation. In it he strikes
at existence of holding companies by
which major trusts control their sub
salaries and at watering of corpora
tiOn stock. To insure more complete
control of railroads by government he
demands the formation of a court of
commerce to comprise five judges, hav-
ing power to act as a court of appeals
from the rulings of the interstate COM
merce commission. President Taft
dips into railway employees safety also.
urging new features of the liability
law.
State control of corporations is Wig
orously attacked: the president charges
it with responsibility for many corpo-
ration abuses, and he takes firm
stand for centralized power.
He demands that railroads be forbid
den to control their competitors and
would give the Interstate commission
sweeping increases in power.
Claims a Distinction.
Declaring distinction between good
and bad trusts to be impossible. the
president says emphatically that if the
trusts are to be kept within the law
new legislation, creating national cor
porations under charter is largely need.
ed. This, the main provision of the
antitrust section. was announced
some time ago as were many of the
other terms of the message. Such
move the president points out is not
to afford the trusts a refuge, as the
Sherman laws repeal is not contemplate
ed.
The proposed statute. according to
the message, is not to be framed so
as to permit the doing of the wrongs
which it is the purpose Of that (Sher-
mani law to prevent, but only to fos-
ter a continuance and advance of the
highest industrial efficiency without
permitting industrial abuse"
Here are the steps he recommends:
His Recommendations.
In antitrust lesislation:-
Grant federal charter to combina-
tions and selling interstate and for
eign commerce
Protection from state interference.
Prevent stock issues in excess of
property values as ascertained by the
federal government.
Compel complete reports of national
corporations to the department of
Commerce and Labor at regular inter
walls.
Prevent corporations from acquiring
or holding stocks in others except with
federal approval: this would do away
with holding companies.
interstate Commerce.
On interstate commerce legislation:
Establish court of five judges, to be
known as the United States court of
commerce with power to enforce all
orders Of the interstate commerce COM
mission. other than for the payment of
money: to review appeals from the
commissions rulings; to handle the
cases provided for in the Elkins act
and other cases that now go to the
circuit court.
Prohibit the issuance of capital
stock or bonds without previous or
simultaneous payment of the issuing
company of not less than their par val
ne. or if the issue is at less than par,
of reasonable market value.
Empower the commerce commission
to approve the amount of stock and
bonds on reorganization, to prevent
the issue from being in excess of the
fair value Of the property.
Prohibit interstate roads from ac-
quiring capital stock or purchasing or
leasing any railroad of any other cor
poration. which competes with 1t. Cor
porations may. II they own when the