The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1911-12-05
DOCUMENT IS UNUSUAL, DEAL.
ING WITH BUT ONE
SUBJECT.
SHERMAN TRUST Law
Defends the Measure, and Advocates
Creation Of Corporation
Commission.
Thy Associated Press.

President Taft's third annual mes
to the Sherman antitrust act and
the trust question in general. was
read in Congress today:
The President defended the Sher-
man act as interpreted by tho SUI
prcmc Court of the United States,
irdicated plainly his opposition to
the repeal or amendment of this
statute. but suggested that Congress
pass a federal incorporation law and
supplemental legislation that
would describe and denouncc me
thOds of competition that are un-
fair.
TO supervise corporations charter
ed under federal law, President Taft
proposed the creation of an cXecu-
tive bureau, or commission, with
powers akin to those Of the Inter
state Commerce Commission.
Speaking of the much discussed
dissolution Of the Tobacco Trust, the
President declared that in his Opin-
ion mot in the history Of American
law has a decree more effective for
such u purpose been entered by a
cOurt.
Portions of his message Of Janu-
ary 1910 proposing Federal incorpo-
ration were referred to In this mes
sage.
II renew" continued the PreSi-
dent, the recommendations OF the
enactment of a general law providing
for the voluntary formation of cor
pOrations to engage In trade and
commerce among the states and with
foreign nations. II Is even more
manifest now than il was then that
restraint of trade should not, and
does not, mean the denial of Organi
zatioms large enough TO be entrusted
with our interstate or foreign trade.
II 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 spcci-
tic provisions for the building up and
regulation of legitimate national and
foreign commerce"
The supplemental legislation the
President desires, is explained In a
'Thc attempt and pur-
pose to suppress a competitor by un-
lcrsclling him at price SO unprOfi-
table as TO drive him out of business
Or the making of exclusive contracts
with customers under which they
ire required TO give up associations
with other manufactures and num-
,r0uS kindred methods for stifling
and effecting monopoly,
should be described with sufficient
iccuracy in criminal statute on
he one hand To enable the COVER
ncnt to shorten ils task by prOsecut-
ng single misIcmcanors instead of
IN entire conspiracy. and. on the
hsr t,sa V..I In I'm, faIIr al
Dointing out more in detail to the
business community what must bc
lvoided. -
Mr. Taft did not attempt to set
orth the details the federal incOr-
act he recommended but
that combinations of capi
al allowed to become federal cor
,orations should be subject TO rigid
'ucs as to organization and proce-
lure, including effective publicity.
md to the "closcst supervision" as
% stock and bond ISSUES by the pro-
,osed exectiyc bureau or commission
n the Commerce and Labor Depart
nent Federal Incorporation, the
President declared. would not ex-
mpt any concern or its officers from
under the Sherman Act
or Illegal acts. Such an act, could
,e framed so as TO prevent 'vexa-
ious and unnecessary invasion by
he states" but yet permit control
~ the states with respect to pure
y local business. The courts should
,e empowered. the President said.
o invoke the aid of the Bureau of
in determining the
uitable reorganization of corpora
ions dissolved by DEGREES. This
york. he pointed out, might be en-
CONTINUED on page four.)