Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-01-07
: President Points the Way
for More Effective
Regulation
OF ROADS AND TRUSTS
Message to Congress Cautious
in Wording to Avoid BuSi-
ness Disturbance.

Washington. Jan. THE presidents s
special message on interstate COM
merce and antitrust laws was laid be-
fore the house today. Both republi-
cans and democrats followed the read
ing closely. Townsend of Michigan,
who was among the most attentive
listeners. was understood to have in
his possession the administration bill
covering the message recommends
tions. The measure will be introduced
Monday next When the reading was
concluded the message was referred
to the appropriate committee.
Covers Two Subjects.
Washington, Jan. President Taft's 5
special message dealing with amend
ments to the interstate commerce laws,
looking to a more effective federal su-
pervision of railroads, and conveying
his recommendations for the passage
of a federal incorporation act, was
sent to congress today.
Embrace Former Suggestions.
The message enbodies all of the
suggestions the president has made in
suggests no change in the Sherman
antitrust law at this time. The anti
trust feature of the message deals
solely with the subject of federal char
ters.
Would Give Them n Chance.
The president thinks an opportunity
should be given the big industrial COM
binations to bring their business once
more in the zone of lawfulness" by
taking out federal charter under GER
tain prescribed conditions before it be-
comes necessary to proceed against
every corporation about which there is
a breath of suspicion.
Conditions Summarized.
Briefly summarized, the conditions
upon which the federal charters are to
be granted under the presidents rec
concentrations are:
Issue of stock to equal only the
cash paid in on the face valuation
of property upon which 1t is is
sued.
Corporations prohibited from &C
quiring and holding stock in other
corporations except upon approval
of federal authorities.
Federal Incorporation to be vol
untary, but such incorporation will
not exempt corporations from pros
ecution for violation of the anti
trust law.
For Commerce Law Changes.
The presidents recomm endations for
changes in the interstate commerce
laws include:
Court of commerce to determine ap-
pc Us from the commission, the only
appeal from this court lying in the
United States supreme court.
Prosecution of cases in courts trans
ferred from the commission to the de-
partment of justice.
Rate pooling allowed under super
vision of the commission.
Commission empowered to pass upon
freight classifications and hold up new
rates or classifications by railroads un-
til reasonableness is investigated
Shippers to have choice of routes on
through freight.
Text of Message.
The message in full follows:
ITO the senate and house of repre-
sentatives: l withheld from my an
nual message a discussion of needed
legislation under the authority which
I, congress has to regulate commerce
between the states and with foreign
countries and said that | would bring
this subject matter to your attention
later in the session. Accordingly l
beg to submit to yon certain recon-
mendations as to the amendments to
the interstate commerce law and GER
tain considerations arising out of the
operations of the antitrust law sug-
gestfng the wisdom of federal incor-
poration of industrial companies.
Interstate Commerce Law.
In the annual report of. the in
terstate commerce commission for
the year 1908 attention is called to /
the fact that between July 1, 1908, |
and the close of that year. 16 suits /
had been begun to set aside orders .
of the commission (besides one COM /
menced before that date), and that /
few orders of much consequence had |
been permitted to go without protest; !
that the questions presented by these
various suits were fundamental, as 1
the constitutionality of the act itself .
was in issue, and the right of con-
-Eress to delegate to any tribunal .
authority to establish an interstate /
rate was denied; but that perhaps /
/ the most serious practical question
raised concerned the extent of the