Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1911-12-08
FEDERAL BUREAU OF
TRUST SUPERVISION
ADVOCATED BY TAFT
President Opposes Repeal of
Sherman Statute, But Fa-
vors Supplemental Legisla-
ton to Control Trusts

WASHINGTON. Dec 5--President Taft's,
third annual message to congress. devoted
exclusively TO the Sherman antitrust act
and the trust question in general 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 suggested that con-l
gress pass a federal Incorporation law
and supplemental, legislation that would
describe and denounce methods of COM
petition that are unfair
FEDERAL SUPERVISION
To supervise corporations chartered un-
der federal law, President Taft proposed
the creation of an executive bureau. or
commission, with powers akin to those OF
the interstate commerce commission.
Speaking Of the much discussed disso-
luton of the tobacco trust, the PRESIDENT
declared that in his opinion mot IN the
history of American law has decree
more effective for such a purpose been en-
tered by court
Portions of his message OF January, 1910
proposing federal Incorporation were re-
ferred to in this message
81 renew" continued the president. the
recommendations of the enactment OF
formation of corporations to engage IN
trade and commerce among the states
and with foreign nations. II Is even more
manifest now than IL was then that the
denunciation of conspiracies in restraint
of trade should not ard does not meant
the denial Of organizations large enough
TO be entrusted with our interstate or
foreign trade. It has been made more
clear now than 1t was then that a pure-
10. anti aa+
law may well be supplemented by speciicI
provisions for the building up and regula-
ton of legitimate national and foreign
commerce"
SUPPLEMENTED LEGISLATION.
The supplemental AgisIation the presi-
dent desires. is exp Ined in paragraph
1.-THE attempt and purpose TO suppress =
competitor by underselling him at price
so improbable as to drive him out OF
business, or the making of exclusive con-
tracts with customers under which they
are required to give up associations with
other manufacturers and numerous kin
dred methods for sitting competition and
erecting monopoly, should be described
with SUFFICIENT accuracy in a criminal
statute on the one hand to enable the
government to shorten its task by pros
ecuting single misdemeanors instead OF
an entire conspiracy, and. on the other
out more In detail to the business COM
munity what must be avoided"
Mr. Taft did not attempt to set fortn
the details the federal Incorporation act
he recommended but suggested that
combinations of capital allowed TO pc
come federal corporations should De SUD-
ject to rigid rules as to organization
and procedure, including directive puD-
Iicity. ana to the closest supervision
as to stoc kand bond issues by the pro-
posed executive bureau or commission
in the commerce and labor department.
Federal incorporation, the president de-
clared. would not exempt any concern
or its Officers from prosecution upoer
the sherman act for illegal acts Sucn
an act, could be framed so as to prevent
''vexatious and unnecessary invasion py
The states" hut vet permit control by
the states with respect to purely local
business
The courts aid of the bureau or COR
porations in determining the suitable
REORGANIZATION of corporations dissolv-
ed by DEGREES This work, he pointed
out, might be entrusted TO the proposed
supervisory commission which snouid
he an executive tribunal, of the dignity
and power of the comptroller OF the
currency or the interstate commerce
commission.
The fact that it dealt with only one
subject; that it was comparatively brier
and that accompanying it was an appen-
dix showing rust prosecutions insutut-
ed by all administrations since the en-
actment of the Sherman act in 1880,
made the message unusual According
To this appendix seven suits were
brougut under this act in the adminis-
tration of President Harrison; eight IN
Mr.. Cleveland's second term; three un-
der President Mckinley; A under MI.
Roosevelt in about seven and one-naII
years. and 81. so far, in the TAFT ao-
ministration.
The attempt to find a line within
which monoplies and illegal combina-
lions might exercise moderate power
and be supported by the courts. MI. Taft
pointed out. has failed.
other messages on various subjects,
the president said, would be sent TO con-