The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-01-08
Railroads and the Trusts


what the heads Of six of the leading
railroads of the country accomplished
when they had a conference with the
President last Monday, but If they sim
ply expressed doubts as to the wisdom
of recommending any new and, in their
minds, disturbing legislation, they ac-
complished very little; for the Presi-
dent proceeds in his special message
sent to Congress yesterday TO recon-
mend at the very outset the establish
ment of "the United States court of
commerce, to consist of five circuit
judges, to have exclusive original jul
risriction of cases arising under the
interstate commerce act. Appeals
from the decision of this court are to
be taken to the supreme court.
There seems nothing unreasonable
in the recommendation of a special
court for the trial of such cases, but
the six railroad presidents, it is said,
opposed it. They could have had no
other ground than that it would has
ten and render uniform decisions. thus
taking away from them the almost
endless delays upon which they have
heretofore largely epended-delays
that consumed money as well as time.
No lust or reasonable complaint can
be brought against the establishment
of a commerce court. The President
especially recommends that no injunc-
ton shall be issued in appeals from
the commerce court except by the SUI
preme court. The power of the COM
merce court to issue injunctions will
be limited if the Presidents sugges-
lions are accepted.
The President offers the railroads
some compensation by proposing that
they be allowed to form pools and
rates, provided they report them
promptly to the interstate commission
subject to the provisions of the inter-
state commerce act. But he also wants
the interstate commission to have the
power TO pass upon the fairness of
has been fully investigated, not exceed
ing so days. The President also thinks
the shipper should have a right to
name the route his goods are to be
carried over. At present he cannot.
The President then takes up the sub
ject of stock ownership. He desires
to have the purchase of any interest
of any kind in competing line forbid
den. And then he turns to the sub
ject of stock watering. Nothing but
money and that to the extent of par
value should be accepted for stocks or
bonds. No bonds or stocks, he thinks,
should be issued except upon the ap.
proval of the interstate commission.
The President then turns to the
trusts and the Sherman law of 1890.
He tries to distinguish between acct
dental and intentional restraints of
trade-between incidental and direct
efforts. He wants the statute of 1890
amended SO that Incidental and bene-
fetal trusts will not be covered by it.
How to distinguish between the inno-
| cent and the guilty is question the
President discusses at great length.
He proposes as a remedy federal
charters to be granted under limita-
tions that secure a compliance with
the antitrust law of 1890. He fears
the use of the word reasonable in
federal antitrust laws. The use of the
word puts too much upon the courts.
He therefore recommends federal char
ters, hoping in that way to prevent the
recurrence of the abuses that have
dIlSeu uuueF SldlS COHIiOl. ne dl-
CUES at length the value of federal con-
troll, and it is indeed difficult to resist
his conclusions. The regulation Of in
terstate and foreign commerce is GER
tainly conferred upon Congress: why,
then, should not Congress authorize
the agencies through which that COM
merce is to be carried on?
! The Attorney General has drafted
| bills to carry out the suggestions of
| the President, and il those bills can
be put through Congress, President
Taft will at any rate secure good
round place in the economic history
OF the country.
|