Evening journal., 1914-01-20
PRESIDEN1 DISCUSSES
"TRUST" LEGISLATION IN
MESSAGE TO CONGRESS

transportation. we cannot postpone &C I
ton in this matter without leaving the /
railroads exposed to many serious han /
dicaps and hazards; and the prosperity 7
of the railroads and the prosperity OF I
the country are inseparably connected. !
Upon this question who are chiefly re-
sponsible for the actual management
and operation OF the railroads have
spoken very plainly and very earnestly I
with purpose we ought TO be quick |
to accept. 1t will be one step. and
very important one toward the neces. |
sary separation Of the business of pro- /
duction from the business of transpor-
tation.
Business Demands Explicit Legislation.
"1he business of the country awaits
also. has long awaited and has suffered
because it could not obtain, further and
more explicit legislation definition of the
policy and meaning of the existing anti
trust law. Nothing hampers business
like uncertainty. Nothing daunts or dis
courages it like the necessity to take
chances. to run the risk of falling under
the condemnation OF the law before it
can make sure Just what the law Is.
Surely we are sufficiently familiar with
the actual processes and methods OF
monopoly and OF the many hurtful re-
straints Of trade to make definition pos
sible, at any rate up TO the limits of
what experience has disclosed. These
practices. being now abundantly dis
| closed. can be explicitly, and item by
! item forbidden by statute in such terms
az will practically eliminate uncertain
tv. the law itself and the penalty being
made equally plain.
"And the business men Of the
country desire something more than
that the menace Of legal process In
these matters be made explicit and
Ineligible. They desire the advice.
the definite guidance and information
which can be supplied by an admins
trative body, an interstate trade COM
mission.
THE opinion Of the country would
instantly approve of such a commits
sion. Il would not wish to see II
empowered to make terms with mo-
nopoly or in any sort to assume con-
troll Of business as If the government
made itself responsible. Il demands
such a combination only as an lndis-
pensable instrument Of Information
and publicity, as a clearinghouse for
the facts by which both the public
mind and the managers Of great bus
mess undertakings should be guided
and as an instrumentality for doing
Justice TO business where the pro-
cesses of the courts or the natural
forces of correction outside the
courts are inadequate 10 adjust the
remedy to the wrong in a way that
will meet all the equities and cir
cumstances of the case.
producing industries, for exam
pie, which have passed the point w
to which combination may be consist
ent with the public interest and the
freedom of trade, can not always be
dissected into their component units
as readily as railroad companies oi
similar organizations can be. Then
dissolution by ordinary legal process:
may oftentimes involve financial con
sequences likely to overwhelm the
security market and bring upon j
breakdown and confusion. Ther'
ought to be an administrative com
, mission capable OF directing ant
shaping such corrective processes
, not only in aid of the courts. but ais
, by independent suggestion, II neces
sary.
"Inasmuch as our object and spiri
J, Of our action in these matters is e
meet business half way in It's pro
cesses of self-correctiOn and disturb
its legitimate course as little as pos
sible we ought TO see It and the judg
ment of practical and sagacious mel
E Of affairs everywhere would applaud
= US if we did see to It. that penaltie
{ and punishments should fall, no
j upon business itself, to its confusion
and interruption, but upon the in
D dividuals who use the Instrumental
T. ties of business to do things whicl
public policy and sound busines
Q practice condemn. Every action o
y business is done at the command o
- upon the initiative of some ascertain
e able person or group of persons
u These should be held individually re
y sponsible and the punishment shoul
fall upon them. not upon the busi
ness organization Of which they max
,, illegal use. u should be one Of tn
, main objects of our legislation {
y divest such persons of their corporal
cloak and deal with them as wit
. those who do not represent thei
= corporations. but merely by delibel
I, ate intention break the law. -sBus
"a ness men the country through. Eoul'
= I am sure. applaud us II we wer
r. to take effectual steps 70 see that til
Z, officers and directors of great bus
ID ness bodies were prevented froi
N bringing them and the business
1t the country into disrepute an
;e danger.
o. "Other questions remain which wi
It need very thoughtful and practic;
h. treatments. Enterprises, in thes
f. modern days of individual fortune
f. are oftentimes interlocked, not !
I'd being under the control Of the san
e. directors, but by the fact that Il
e. greater part of their corporate stoc
r is owned by a single person or grou
n of persons who are In some way II
tlmately related In interest. We al
eh agreed, I take it, that holding con
r panies should be prohibited, but VIII
We of the controlling private ownersh
en- of individuals or actually co-ope
OF ative groups Of individuals? Sha
We the private owners Of capital sto'
n be suffered to be themselves in effe
X holding companies?
ng Purchase OF Stocks.
oi eve do not wish. / suppose, to fo
e bid the purchase Of stocks by al
- person who pleases to buy them
e such quantities as he can afford, or
VI any way arbitrarily to limit the SO
y; of stocks to bona-fide purchaser
ha Shall we require the owners OF stoc
lv when their voting power In sever
he companies which ought to be ind
lpendent of one another would cons
as tute actual control. to max electi
irs in which Of them they will exercl
fhaf, rfobt 70 ~ofo0 This aaupafi