Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-12-05
Urges Criminal Statute
for Individual
Offenders.
MERE SIZE OF BIG
CONCERNS NO SIN
President Believes Federal
incorporation Act Could
Work Good.

WASHINGTON, Den 5.--President
Taft's third annual message to Cont
gress. dev oted eXclusivel to the Sser-
man antitrust act and the trust ques-
tion in general, was read in Congress
today
The President defended the Sherman
act as interpreted by the Supreme
Court Of the United states, indicated
llainiy his opposition to the repeal or
amendment to this statute. but sug-
gestcd that Congress pass a Federal
incorporation law and supplemental
legislation that would describe and
denounce methods of competition that
are unfair
To superVis2 corporations chartered
under Federal law President Taft pro-
posed the creation # an executive bu-
reau, or commission, with powers akin
to those of t1e Interstate Commerce
Commission.
Speaking o. the much discussed dis
solution Of the tobacco trust, the Pres
ident4 declared that, in his opinion.
mot in tie history Of American law
has Il decree llore effective for such a
purpose beei. entered by court"
Portions of hisaallsssags. OF Janu ~.
1910, proposing Fecersl Incorporation,
We're referred to in this message.
Urges Criminal stntute.
Il renew continued the President,
s The recommendation of the enact
mcnt of a general law providing for
the voluntary formation of corpora
tions to engage in trade and COM
merce among the States and with
foreign nations. 1t is even more mani
fest now than it was then that the de-
nunciation of conspiracies in restraint
of trade should not, and does not, mean
the denial or organizations large
enough to be entrusted with our inter
state or foreign trade.
1T has been made more clear now
than it was then that a purely mega
tive statute like the antitrust law
may well be supplemented by specific
provisions for the building up and
regulation of legitimate national and
foreign commerce.
The supplemental legislation the
President desires is explained in the
following paragraph:
''The attempt and purpose to sup
press a competitor by underselling him
at a price so Improbable as to drive
him out of business, or the making of
exclusive contracts with customers
under which they are required to give
up associations with other manufac-
turers and numerous kindred methods
for sitting competition and effecting
monopoly, should be described with
sufficient accuracy in criminal
statute on the one hand to enable the
government to shorten its task by
prosecuting single misdemeanors in
stead of an entire conspiracy, and, on
the othel hand, to serve the purpose
of pointing out more in detail to the
BUSINESS community what must be
avoided"
For Corporation Publicity.
Mr. Taft did not attempt to set forth
the details of the Federal incorpora-
ton act he recommended, but suggest
ed thai combinations of capital al
lowed to become Federal corporations
should be subject to rigid rules as TO
organization and procedure, including
effective publicity, and to the closest
supervision" as to stock and bond is
sues by the proposed executive bureau
or commission in the commerce ana
labor department.
Federal incorporation, the president
declared, would not exempt any con-
Germ or it's officers from prosecution
under the Sherman act for illegal acts.
such an act could be framed so as to
prevent "veXatious and unnecessary IN
vasion by the States" but yet permit
control by the States with respect to
purely local business.
The courts should be empowered, the
President said, to invoke the aid OF
the bureau of corporations in deter
mining the suitable reorganization OF
corporations dissolved by DEGREES. This
work. he pointed out, might be entrust-
ed to the proposed supervisory COM
misR'on. which should be an execu-
tive ibunal of the dignity and power
of the comptroller of the currency OF
the Interstate Commerce Commission.
The fact that it dealt with only one
subject; that it was comparatively
brief: that accompanying it was an ap-
dix showing trust prosecutions
in 7uted by all administrations since
the~e actment of the Sherman act IN
1890. made the message unusual. Ac-
cording to this appendix seven suits
were brought under this act in the ad-
ninistration of President Harrison;
eight in Mr.. cievelands second term;
three under President Mckinley. forty
four under Mr. Roosevelt in about
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