The Calumet news., 1911-12-05
Defends Sherman Law and o.
poses Repeal or Amendment
of the Statute
FOR FEDERAL INCORPORATION
Also Proposes Commission to
Supervise Corporations
Advises, Too, Supplemental Leaisla-
ton, Describing and Cenoune-
ing Methods Of Competi-
ton That Are Unfair.

Washington, Dec. 5.--President Tafts
third annual message to Congress, de-
voted exclusively to the Sherman anti
trust act and the trust question i'm gem
eral was read in Congress today.
The president defended the Sherman
act as interpreted by the Supreme
court of the United States, indicated
plainly his opposition To the repeal or
amendment of this statute, but sug-
gested that Congress pass a federal
incorporation law and supplemental
legislation that would describe and
denounce methods of competition that
are unfair"
To supervise corporations chartered
under federal law, President Taft pro-
pcsod the creation of an executive bu-
reau, or commission. with powers akin
to those of the Interstate Commerce
Commission
Tobacco Decree Effective.
Speaking of the much discussed dis
solution of the Tobacco Trust, the
president declared that In his opinion
mot in the history of American law has
a decree more effective for such pur-
pose been entered by a court"
Portions of his message of January
1910 proposing Federal incorporation
were referred to in this message.
Il renew" continued the president
"the recommendation of the enactment
Of a general law providing for the vol
untary formation of corporations TO en-
gage in trade ana commerce among the
states and with foreign nations. II is
oven more manifest now than it was
then that the donunciation of conspi-
racies I'm restraint OF trade should not,
and docs not. mean the denial of or
eanizations large enough TO be entTust-
ed with our interstate or foreign trade.
1t has been made more clear now than
IL was then that purely negative
statute like the antitrust law may
well be supplemented by specific pro-
visions for the building up and regu-
lation of legitimate national and for
eign commerce.
Legislation Taft Desires.
The supplemental legislation the
president desires is explained in par
agraph. "Thc attempt and purpose to
suppress competitor by uuderselling
him at a price so Improbable as to
drive him out of business, or the maxi
ing of exclusive contracts with GUS
toners under which they are required
TO give up associations with other
manufacturers and numerous kindred
methods for sitting competition and
enocting monopoly. should be described
with sufficient accuracy i'm a criminal
statute on the one hand to enable the
government To shorten iia task by
prosecuting single misdemcanors in
stead of an entire conspir4 y and, on
the other hand to serve the purpose
of pointing out more i'm detail to the
business community what must be
avoided"
Mr. Taft did not attempt to set forth
the details Of the federal Incorporation
act he recommended but suggested
that combinations of capital allowed To
become federal corporations should be
subject TO rigid rules as to organiza-
ton and procedure including effective
publicity, and to the closest supervis-
ion" as to stock and bond issues by
the proposed executive bureau or COM
mission i'm the Commerce and Labor
Departmental
Would Provide For Prosecution.
Federal Incorporation, the President
declared, would not exempt any con-
corn or its officers from prosecution
under the Sherman Act for Illegal acts.
Such an act could be framed so as TO
prevent "vexatious and unnecessary
invasion by the states but yet per-
NIT 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 determining the
suitable reorganization Of corporations
dissolved by decrees. This work, he
pointed out, might be entrusted TO the A.!
proposed supervisory commission
which should be an executive tribun-
al, of the dignity and power of the
Comptroller of the Currency or the In
tcrstate Commerce Commission"
The fact that II dealt with only one |
subject; that II was comparatively |
brief and that accompanying II was
an appendix showing trust prosecu-
tions Instituted by all administrations
since the enactment OF the Sherman |
Act in 1890, made the message unusual
According to this appendix seven suits
were brought under this act in the
administration of President Harrison; |
eight In Mr.. Clevcand's second term?
three under President Mckinley, for
ty-four under Mr.. Roosevelt in about