The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1911-11-15
PRESIDENT Will
DEMAND Three
GREAT REFORMS
His Message to Suggest SOlu-
ton of Trust, Tariff and
Railroad Questions
Federal Incorporation Act May
Specify What Business Can
Not Do in Combines
Taft Expected to Deal With
MiddIeman and Profits and
Urge Parcels Post
By IRA E. BENNETT
TSpeciol Dispatch 10 The Call

Especial Dispatch 10 The Call
AsHINGToN. Nov. 14.-con-
IA gre9s is to be given an op-
Wv portunity to meet squarely
the whole problem of trust
control, railroad capitalization and tar
if reduction at the session which will
convene the first Monday in December.
President Taft in his annual message
will suggest the solution of these i'm
portant questions which have been agi-
tating the public for the last few
years. While he is anxious to make
his message as brief as possible, the
president intends to meet every issue
that is before the public.
An idea of the breadth of the presf-
dents proposal with regard to filling
the gaps in the laws regulating the
trusts became known yesterday, when
it was learned that the federal incor-
poration bill. which has been advo-
Gated by the administration for a long
time. probably will contain definite in
formation as to what business men
must not DO.
Criticism of Law
The chief criticism Of the sherman
anti-trust law as it now stands. and
of the attitude of the government in
the trust prosecutions has been that
great pains have been taken to inform
business. through the courts. what can
not be done legally. while no steps
have been taken in constructive way
to inform business men what they can
or should do.
Should the federal Incorporation bill
which the president has in mind be-
come a law there will be included in
it specific descriptions of the wrongful
acts which lead to monopoly. It will
not describe what constitutes a monop-
oily. 1t will simply place the ban on
the specific acts that invariably lead
to the formation of illegal trusts and
monopoIies 1t has been the expert
ence Of the officials of the department
OF justice that trusts which violate the
law never came into existence through
innocent cooperation.
Examples Cited
The officials of that department state
that their Investigations have shown
that most of the trusts under the ban
of the law were formed deliberately
and with the express desire of driving
competitors out Of business. AS an ex-
ample that may be banned by the fed
eral incorporation act, should the plan
under contemplation be followed, the
case of two men engaged in the same
kind of business and forming agree
nent to consolidate is cited.
The simple consolidation in the eyes
of the government officials is not un-
lawful, but if these two corporations
once consolidated, conspire to drive
competitor out of business by an agree
-ment to undersell him. then they will
come into conflict with the federal in
corporation law
Another instance of sinegitimate
business" is given in the case Of a
trust which makes a contract with a
retailer to supply certain amount of
goods with the stipulation that if the
retailer buys goods from any other
source he will be blacklisted and fur
nished no more goods.
May Specify Acts
Specific acts of this sort. tending
towards restraint of trade and leading
inevitably to monopoly, will probably
be described in the federal incorpora-
.tion bill. 1t may be that congress may
decree to put these specific prohibitions
in an amendment to be added to the
Sherman law, but President Taft is
known to feel that the federal incor-
poration act itself is the real solution
of the trust problem.
It is quite likely that the president
will content himself with making sug-
gestions along this line in his annual
message to congress, leaving the franz
ing Of the bill itself to that body
It is believed by officials of the gov
ernment that the federal incorporation
act will serve as a brake on monopoly.
Under its specific wording it will not
be necessary for the government to
prove the existence of a monopoly. The
trusts will be punished for the very
acts that lead to monopoly.
Changes in Tariff
This will do away with the necessity
Of proving the circumstances of the
origin of great corporations. Specific
offenses, leading to unjust restraint
of trade, viii be nailed at once under
the specific terms of the law.
President Taft made it clear to Wis
itors yesterday that he expects to have
sufficient material from the tariff board
both on the wool and cotton schedules
to make his recommendations with re-
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