Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-05

STtSS tOQaN.
The President de-
Tended the Sherman act as interpret
ed by the Supreme Court of the United
States. indicated plainly his opposition to
the repeal or amendment of this statute,
but suggested that Congress pass fed
eral incorporation law and supplemental
legislation that would describe and de-
nounce methods of competition that are
unfair"
To supervise corporations chartered un-
der federal law, President Taft proposed
the creation of an executive bureau, or
commission with powers akin to those
Tobacco Decree Effective.
Speaking Of the much discussed dis
solution Of the tobacco trust, the Presi-
dent declared that in his opinion mot in
the history of American law has decree
more effective for such a purpose been
entered by a'eourt.'
Portions of his message of January,
1910, proposing fefsi'al Incorporation were
.cferred to in this message.
Il renew" continued the President,
the recommends tons of the enactment
of Il general law providing for the vol
untary formation of corporations TO en-
gage in trade and commerce among the
states and with foreign nations. 1t Is
even more manifest now than 1t was then
that the denunciation of conspiracies In
restraint OF trade should not, and does
no mean the denial of organizations
large enough to be intrusted with our IN
terstate or foreign trade 1t has been
made more clear now than it was then
that a purely negative statute like the
antitrust law may we'll be supplemented
by specific provisions for the building up
and regulation of legitimate national and
foreign commerce.
To Strengthen the Act.
The supplemental legislation the Presi-
dent desires is explained in a paragraph.
"The attempt and purpose to suppress
competitor by underseiling him at price
80 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 manufacturers. and numerous
aru effecting monopoly. Snould De de-
scIibed with sufficient accuracy In Grim
inal statue on the one hand. 20 enable the
government TO shorten Its task oy prose-
cutting single misdemeanors instead OF an
entire conspiracy. and, on the otner hano.
10 serve the purpose of pointing out more
IN detail Ia che business community what
must ~ avoided
Mr.. Taft did not attempt to set forth the
details Of the federal Incorporation act
he recommended but suggested that COM
binations OF capital allowed to become
federal corporations should he subject to
rigid rules To organization and proee-
dure, including effective publicity, and
10 the closest supervision to stock
and bond issues by the proposed execu-
tive bureau or commission in the Com
merce and Labor department
Federal Incorporation. the President de-
clared. would not exempt any concern or
its officers from prosecution under the
sherman act Tor Illegal acts.
As Aid to Courts.
SUCH an act could be framed so as to
prevent "vexatious and unnecessary in
vasion by the states but yet permit con-
tnoI BY the states with respect to purely
local business. The courts should be en-
powered, the President said, to invoke the
aid of the bureau of corporations in de-
rerruinIng the suitable reorganza ton of
CORPORATIONS dissolved by DEGREES. This
work. ne pointed out. might be intrusted
10 the proposed supervisory commission
which "should be an executive tribunal of
The dignity and power of the controller
OF the currency or the Interstate COM
IDerce commission.
The fact that il dealt with only one sub
Sect, thar il was comparatively brief and
that accompanying II was appendix
showing trust prosecutions Instituted by
all administrations since the enactment OF
the Sherman act OF 1s.D made the mes
sage unusual. According to this appendix
seven suits were brought under this &C,
in the administration of President Harri.
son. eight in Mr. Clevelands second term
three under President Mckinley. forty.
four under Mr.. Roosevelt in about sever
and half years, and thirty-Seven, sc
in ba Toft dp, .iS- rat