The Washington herald., 1910-01-03
TAFT COMPLETES
SPECIAL MESSAGE
Continued from Page One.

1t is said the administration measure
may go so far as to provide that no rail
road company engaged in interstate com
MERGE shall hold stock in a competing
railroad.
There will be no recommendations In
the message for notifications in the
Sherman antitrust act. unless the Presi-
dent changes his mind before Wednesday.
In spite Of recent predictions that Mr.,
Taft would suggest to Congress such
changes,
That portion of the message which deals
with corporations and their control will
rehearse in general fashion the decisiors
of courts in cases which involved that
law.
Instead Of recommendations for i'm
provement Of the Sherman law the Presl-
dent, It was pointed out win ask Con-
gress to consider a national Incorporation
act Such a measure has been drafted
by Attorney General Wickersham.
It will propose that corporations doing
an interstate business be given the privi-
| lege of Incorporating under the Federal
/ government Railroads will not be In
Guided in those enterprises held 10 be
within the meaning of the measure. The
| President. it was said. believes there is
| sufficient provision for railroad control
now on the statute books. Industrial cor
porations. and. in fact, any concerns which
do a business beyond the boundaries Of
the states IN which they are now in
| corporated, viii become subject to the
| law.
There will be no compulsory feature
about this measure. It will be made obvi-
Gus, however, that concerns which do
not wish to take advantage OF it may
| find themselves IN hot water Failure
to come in may be construed as acknowi-
edgment that a corporation is not obey
| ing the antitrust act
No Bureaucratic System.
1t was declared yesterday that under
the Federal Incorporation system advo-
Gated by the President. there can be no
bureaucratic system such as many ad-
visers told Mr. Taft would spring up If
the proposed license idea was adopted.
The machinery OF Federal incorporation
will be administered probably through
the Department Of Commerce and Labor
and IT'S Bureau OF Corporations.
The President. II was shown. has no
fear as to the constitutionality Of the pro-
posed legislation. There was no doubt
in the minds of many statesmen yester-
day that this latest Of Mr., Tafts legisla-
tive ideas VIII meet with opposition in
Congress.
In the first place. il was pointed out
there win be a fight between the State
rights partisans and those who favor the
lodging Of greater power in the Federal
government
One pretty question which is likely to
arise is that Of just how far the Federal
government can go in the control OF cor
porations doing an interstate business
without infringing upon the States and
their rights over interstate commerce.
Another point which viii be raised. II
was predicted. is that OF taxation Con
gress. it was said. may want to know
what proportion Of the commerce Of a
corporation it can tax, If it wishes &c
tax at all, and how much OF that output
the State may tax. Perhaps one Of The
most difficult questions, it was said. vii
be that OF charters.
Row Seems Imminent
One thing which it seems probable viii
cause a row on Capitol Hin is the way fl
which Mr.. Taft viii submit the Legislation
which he refers to IN the message. Their,
viii be no members OF the House anl
Senate. it was said, stamped with tn,
, administration backing and asked to pu
the measures through
In effect, the President intends thi
time to have Congress come 10 him fo
the bills which he wishes passed. He WI