The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-12-06
Stands Firmly by Act as
Interpreted by SUI
preme Court.
BUSINESS MUST
STAY WITHIN PALE
Suggestion Made That Federal
Incorporation Law and Supple
mental Legislation Be En-
acted by Congress-Big Bus
mess Done Legally Should
Not Be Disturbed.


Washing ton, December 6.-Prcsidcnt
Tafts message on the trusts was read
in both branches of Congress to-day.
and was generally well received.
Tho Presidents objection to repeal
Of the sherman law was approved by
b~mc Of the leaders on both sides, all
though the Democrats held that his
first message should have dealt with
wood said the President and the ad-
ministration were trying to over
shadow the tariff with trust issues.
Tho message Is an able one from
the Presidents standpoint" said Mr..
Underwood, but VIC feel that the lead
ing message should have dealt with
tho tariff. There seems to be an ef-
fort on the part OF the President and
the administration to force trust Is
sues ahead am opposed to a repeal
of tic Sherman law, but there may
be supplemental Legislation to define
IL. do not think the House favors
Federal incorporation act"
Speaker Clark said he could not dis
cuss the message until he had studied
1t thoroughly.
Republican Leader Mann. who has
not always agreed with the President,
prais the message.
1T Is probably the strongest ut
tcrnnce President TAFT has ever made"
nc said 1T shows that nc is on the
stdc of the people. that he is not con-
1rIll.d by tho trusts and that he does
not wish 10 cause undue violence TO
proper combinations OF capital"
In the House, the reading of the
message was interrupted by applause
from the Republican aide.
Defrnds sherman Act.
The President defended the Sherman
nc. as interpretatcd by the Supreme
Court OF the United states. indicated
plainly his opposition to the repeal or
amendment of this statute. but sug-
gcsted that Congress- pass n Federal
incorporation law and supplemental
Legislation that would describe and
denouncc methods OF competition that
are unfair"
To supervise corporations chartered
under Federal law, President Taft pro-
posed the creation of an executive
bureau or commission, with powers
akin to those OF the Interstate COM
mere, Commission.
Speaking Of the much discussed dis.
solution OF the tobacco trust, the Pres
ident declared that In his opinion mot
in the history of American law has Il
deere more effective for such pur-
Portions of his message OF January.
1910. proposing Federal incorporation,
were referred to In this message
Il renew" continued the President.
'the recommendations of the enact
ment OF general law providing for
the voluntary formation OF corpora
tons to engage IN trade and commerce
among the States and with foreign ma
lions II Is even more manifest how
ha ha ian
OF conspiracies In restraint OF trade
should not. and does not. mean the de-
NAL of organizations large enough
to be intrusted with our interstate
or foreign trade. II has been made
more clear now than it was then that
q. purely negative statute like the anti
trust Law may well be supplemented
by specific provisions for the building
up and regulation OF legitimate ma
tlonal and foreign commerce."
The supplemental legislation the
President desires, Is explained in a
paragraph. The attempt and purpose
30 Suppress n competitor by undersell-
ing him at price so Improbable as
to drive him out of business, or the
making of exclusive contracts with
customers under which they are re-
nuired to give up associations with
other manufacturers and numerous
kindred methods for Sitting competi-
lion and cffectinG monopoly, should
be described with sufficient accuracy
In criminal statute on the one hand
to enable the government to shorten
its task by prosecuting single misde-
mcanors instead OF an entire con-
spiracy. and, on the other hand. to
serve the purpose of pointing out more
In detail to the business community
what must be avoided
Should Bc Rigid RuIcs.
Mr.. Taft did not attempt to sci
forth the details Of the Federal incorpo.
ration act he recommended, but sug.
Sested that combinations of capital
allowed to become Federal corpora
lions should be subject to rigid rules
as to organization and procedure, in.
Guiding effective publicity. and to the
closest supervision" as to stock and
bond Issues by the proposed execu.
tive bureau or commission In the Com.
merce and Labor Department. Federal
incorporation, the President declared
would not exempt any concern or its
officers from prosecution under the
Sherman act for Illegal acts. Such az
act could be framed so as to prevent
ve%atious and Unnecessary invasion
by the States" but yet permit control
by the States with respect to purely
local business. The courts should be
empowered the President eaid, to in
woke the aid of the Bureau of Cor
porations In determining the suitable
reorganization of corporations dis
solved by DEGREES. This work, he
pointed out, might be intrusted TO the
proposed SUPERVISOR. commission
winch should be an executive tri-
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