New-York tribune., 1910-02-06
rrronn The Tribune Bureau


Washington, Feb. 5.-The President has
approved the final draft Of the federal in
corporation law. as prepared by the Attor-
ney General. and the text will be made pup
lie on Monday morning II is expected that
the bill will ne introduced in the Senate or
Senator Clark, chairman of the judiciary
Committee, and in the House by Repre-
sentative Richard Wayne Parker. chair
man of the same committee in the lower
chamber The administration is not SO
pesslmistic regarding the course Of Con-
sress in connection with this legislation as
are the leaders of Congress Il is realized
that much depends on the decision Of the
Supreme Court in the Tobacco Trust and
Standard Oil cases. but il is believed that
if the court af1rnns the decisions OF the
lower courts in those cases the chances OF
favorable action by Congress will be great
II increased. Such affirmation would bring
home to members Of Congress the i'm
portance of legislation which would at least
tend TO ameliorate the conditions resulting
from such affirma ton. and while IL Is not
probable that the President will throw the
full weight of his influence in the balance
10 obtain the passage of the federal incor-
poration bill, there is a feeling that the in
dusIrial situation will make the Importance
OF such enactment too obvious TO permit of
its being overlooked. Advancing 4 new
proposition Of this character, the President
has hesitated 70 make its support Z, test of
Republican regularity He has refrained
from making anything q. test of regularity
which was not actually promised in the
Repubrca9 Estionai--atfornl. He regards
the federal Incorporation legislation as
highly important. but he is not inclined TO
take on his own shoulders all the responsi-
members Of both houses should realize for
themselves the Importance of the legisla-
ton which he regarded as sufficiently i'm
portant 10 make II the subject Of a special
message.
Federal Incorporation would not. Of
course. IegaIize violations of the Sherman
law or make lawful those institutions
which. in violation of that law, have ab-
sorbed their competitors and established
great monopoIies- On the other hand, 1t
would make possible the creation, without
iucgaIity. of large corporations which would
constitute proper purchasers of the COM
ponent parts of the trusts declared illegal
Under the Sherman act, would obviate all
necessity for the smaller corporations often
organized as devices with which to conform
70 the varying state laws. and which in
turn are now owned by parent or holding
companies Of questionable legality. AS the
President pointed out in his special mes
sage, such federal corporations would be
subjected to supervision and visitation de-
signed 10 render impossible, without detec-
tor, their practising those methods for the
destruction Of competition which have
brought the great trusts into disrepute,
for in return for the protection which
such federal corporations would receive
from state regulation and control, they
would yield such measure Of privacy and
independence as might permit Of their
building up and maintaining n1onopolies-
An official high in the administration,
commenting on the discussion of this sub
1ect in this column this morning, declared
that the situation as depicted there was in
no way overdrawn. and II was his belief
that events of the near future would serve
so strikingIy to impress themselves on mem
bers of Congress as 70 warrant the hope Of
favora BILE action at this session. Nor is II
expected that the pressure likely 10 be ex-
erted in favor of the legislation will come
from business men alone. If, pursuant 70
the decision Of the Supreme Court, ii be
comes necessary TO dissolve a material
number of the trusts, II will so affect thou
sands
sands of employees practically 20 insure
their appealing to Congress for relief Il
is characteristic Of President Taft that he
Is reluctant 10 exert pressure on Congress
for the adoption Of his IDEAS. He prefers
10 anticipate situations in so far posi-
HE 10 suggest the remedy in advance, and
rher TO permit Congress 10 work out its
own problems. confident the while that If
the remedy he has suggested is the correct
one the national legislature will realize
that fact in due and ample time
When Congress was confronted with the
necessity Of raising more revenue than the
tariff bill promised to yield. the President
suggested the adviSability Of the corpora
ZION tax. Three methods Of raising revenue
were then receiving consideration-an in
herirance tax. an income tax and 4 cor
poration tax The President told the lead