The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1910-01-08
RECOMMENDED
BY PRESIDENT
Special Message Suggests
Changes in Statutes.
FAVoRS COMMERCE COURT

Document Deals With Interstate Com.
merce Regulation and CURLING Of
Trusts-Federal Charters for Corpo.
rations the Most important Proposal
Made by the Chief Executive to
Congress.
Washington, Jan. 8.-President
Taft's special message dealing with
amendments to the interstate COM
MERGE laws looking to more effective
federal supervision of railroads and
conveying his recommendation for
the passage of federal incorporation
act was transmitted to congress and
read in the house, the senate not be-
ing in session.
The message followed closely the
forecasts that have been made from
time to time and suggested legisla.
| ton as to railroads, embodying all of
the suggestions that the president has
| made from time to time in his speeches
on the subject.
Mr.. Taft suggests no changes in the
| Sherman antitrust law at this time.
! The antitrust feature of the message
| deals solely with the subject of federal
| charters. The president thinks that
an opportunity should be given the
| big industrial combinations to bring
their business once more into the
zone of lawfulness" by taking out a
! federal charter under certain pre-.
scribed conditions before it becomes
| necessary to proceed against every
! corporation about which there is a
breath of suspicion.
! To Probe Suspected Concerns.
ut is the duty and the purpose OF
the executive" says the message, ito
! direct an investigation by the depart
ment of justice, through the grand
jury or otherwise, into the history, or.
| ganization and purpose of all the in.
| dustrial companies with respect to
| which there is any reasonable ground
for suspicion that they have been or.
| ganized for purpose and are conduct.
ing business on plan which is in vic.
lation of the antitrust law" p
Such a wholesale investigation and
! possible prosecutions, the president
| points out, however, would result in
serious disturbances and produce a
| halt in our present prosperity that will
cause suffering. and strained circum-
stances among the innocent many for
the faults of the guilty few.
"The question which I wish in this
! message to bring clearly to the con.
sideration and discussion of the con.
gress is whether, in order to avoid
such possible business danger
| something cannot be done by which
| these business combinations may be
offered means, without great finan.
cial disturbance, of changing the char.
| acter, organization and extent of their
| business into one within the lines of
| the law under federal control and su.
| pervision, securing compliance with
! the antitrust statutes"
The conditions upon which federal
! charters are to be granted under the
| presidents recommendations are
| these:
Method Of Incorporation.
The issue of stock to be to an
amount equal only to the cash paid in
on the stock, or, if stock be issued
for property, then at a fair valuation,
| ascertained under approval and s1l-
pervision of federal authority, after a
| full and complete disclosure of all the
facts appertaining to the value of the
! property and the interest in it of the
| persons to whom the stock is to be
| issued.
Corporations taking federal char
| tiers are to be prohibited from acquir-
| ing and holding stock in other cor
| porations except for special reasons,
| upon approval by the proper federal
! authorities. Full reports of operations
are to be made to the department of
commerce and labor at regular inter
walls. The federal incorporation is to
be voluntary, but the president feels
that most of the corporations will be
glad 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 charter is to ex-
empt any corporation from prosecu-
lt1on for violations of the antitrust
law.
In that portion of his message deal
Ing with changes in the Interstate
commerce law the president recon.
mends:
The establishment of United
States court of commerce of five
Judges to hear and determine appeals
from the interstate commerce com.
mission, the only appeal from this
court lying in the United States su.
preme court.
For Prosecution of Cases.
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 rates
to be allowed under direct supervision
of the commission.
The commission to be empowered
to pass upon freight classifcations.
The commission to be empowered
to hold up new rates or classiicatiors
by railroads until an inquiry can be
made as to their reasonableness II
found to be unreasonable the con-
mission may forbid the increase.
Shippers to be given the choice OF
established rates on through freight.