The Washington times., 1911-12-05
Message Read In Both Houses Of Congress-

that such a plan will be evolved, but J
submit that the discussions which have
been brought out In recent days by the
fear Of the continued execution Of the
antitrust law have produced nothing
but glittering generalities ana nave OF
fered no lire Of distinction or rule OF
action as definite and as clear as that
which the Supreme. Court itself lays
down In enforcing the statute.
Supplemental Legislation.
see no objection-and indeed I can
see decided advantages--in the enact
ment Of law which shall describe and
denounce methods Of competition which
are unfair and are badges Of the un-
lawful purpose denounced in the anti
trust law. 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 contracts with customers
under which they are required 70 give
up association with other manufactur-
ers, and numerous kindred methods for
sitting competition and erecting mon.
opoly, should be described with sufhcient
accuracy In q criminal statute on tne
shorten its task by prosecuting single
misdemeanors instead OF an entire con-
spiracy, and, on the other hand, to serve
the purpose Of pointing out more IN
uethlI 10 the DuSihcS6 "''~~s
must be avoided.
Federal Incorporation.
In a special message to Congress on
January Z, 1910, I ventured to point out
the disturbance to business that would
probably attend the dissolution OF these
offending trusts. I said:
But such an investigation and pos
sible prosecution of corporations whose
prosperity or destruction anects tne
comfort not only Of stockholders but OF
millions Of wage earners. employees, ana
associated tradesmen must necessarily
flowing sources OF capital from its
places Of boarding, and produce a halt
In our present prosperity that Will cause anse
among the innocent many for the faults
of the guilty few. The question which
I wish In this message to- bring clear
~ to the consideration ana DISCUSSION m
avoid such a possible business danger.
something can not be done by which
these business combinations may be
disturbance. OF changing the character,
organization, and extent of their busi-
ness into one within the lines of the
law under Federal control and super
vision. securing compliance with the
Generally, in the industrial combin-
ations called trusts the principal busi-
ness Is the sale of goods In many States
and in foreign markets; In other words,
exceeds the business done in any one
State. This fact will justify the Fed
eral Government In granting Federal
charter to such a combination to make
and sell in Interstate and foreign COM
merce the products Of useful manufac-
ture under such limitations as will Sc
cure a compliance with the antitrust
law. 1t Is possible so to frame stat
ute that while 1t offers protection to
Federal company against harmful, vex.
atious, and unnecessary invasion by
the States. It shall subject it to rea-
sonable taxation and control by the
States with respect to its purely local
Corporations organized under this
act should be prohibited from acquiring
and holding stock in other corporations
provai by the proper Federal author
ity), thus avoiding the creation under
national auspices Of the holding COM
pany with subordinate corporations In
different States, which has been such
an effective agency in the creation OF
the great trusts and monopolies
III the prohibition of the antitrust
act against combinations in restrain OF
essential that the National Government
shall provide for the creation of ma
tional corporations to carry on legit-
innate business throughout the United
States. The conflicting laws Of the diff
ferent States of the Union with respect
to foreign corporations make 1t difficult,
II not impossible, for one corporation
to comply with their requirements 80
as to carry on business In a. number
OF different States"
renew the recommendation OF the
enactment Of general law providing
for the voluntary formation OF corpora
tions to engage in trade and commerce
tho States and with foreign a
tions. Every argument which was then
advanced for such a law. and every ex-
planation which was at that time Of
fered to possible objections. have been
enforcement of the antitrust statute
has resulted in the actual dissolution of
active commercial organizations.
1t is even more manifest now than J:
was then that the denunciation OF con-
sr.racies in restraint of trade should
not and does not mean the .lenial of
organizations large enough to be IN
trusted with our Interstate and foreign
trade 1t has beer made more clear
now than 1t was then that purely
negative statute like the antitrust law
may we'll be supplemented by specific
provisions for the Building up AMI regu-
lation Of legitimate national and foreign
commerce.
Administrative Experts Needed.
The drafting OF the DEGREES in the dis
solution of tho present trusts. with
view to :heir reorganization into legiti-
mate corporations. has made 1t cspe-
cially apparent that the courts are not
rro.id"d with the admlnistrative ma
cEinery to make the necessary irQuicies
preparatory to reorganization or to
pursue such inquiries. and they should
lie empowered to invoke the aid of the
Bureau Gf Corporations in determining
the suitable reorganization of tie disin-
tegrated parts. The Circuit Court apd
Attorney Genera! were greatly allied In
framing the deer &c in the Tobacco trust
dissolution by an expert from the Bu-
reau Of Corporations.
Federal Corporation Commission.
do not set forth in detail the terms
and sections OF a statute which might
supply the constructive legislation per-
mittipg and aiding the formation of
combinations of carital into Federal
Corpor ations. They should be subject to
rigid rules a to their organization and
procedure, including effective publicity.
and to the closest supervision as to tho
Issue of stock and bonds by an execu-
tive bureau or commission in the De-
partment CT Commerce and Labor. to