PWIPS" INTERNATIONAL FALLS PRESS the order of the commission reducing portatlon. The moving causes have been ate with the boundaries of the country, sutfi corporations to file full and complete such rates are affirmed. It may be doubted several. First, It has rendered possible no state prosecution is aVle to supply the reports of their operations with the how effective this remedy really is. treat economy sepond, by a union of needed machinery for adequate restraint department of commerce and labor at Experience has shown that many, perhaps former competitors it has reduced the or punishment. regular Intervals. Corporations organized most shippers do not resort to proceedings probability of excessive competition and, SPECIAL MESSAGE The supreme court In several of its under this act should be prohibited from to recover the excessive rates third, if the combination has been extensive decisions, has declined to read into the acquiring and holding stock in other corporations which they may have been required to enough, and certain methods in statute the word "unreasonable" before (except for special reasons upon the treatment of competitors and customers pay, for the simple reason that they have "restraint of trade," on the ground that approval by the proper federal authority), added the rates paid to the cost of the have been adopted, the combiners the statute applies to all restraints and thus avoiding the creation, under goods, and thus enhanced the price thereof have secured a monopoly and complete does not intend to leave the court the national auspices, of the holding company control of prices or rates. to their customers, and that the public discretion to determine what is a reasonable with subordinate corporations in has in effect paid the bill. On the other A combination successful in achieving restraint of trade. The expression different states which has been such an hand, the enormous volume of transportation complete control over a particular line of "restraint of trade" comes from the common effective agency in the creation of the charges, the great number of separate manufacture has frequently been called Makes Recommendations as to Commerce law, and at common law there were great trusts and monopolies. tariffs filed annually with the interstate a "trust. I presume that the derivation certain covenants incidental to the carrying If the prohibition of the anti-trust act commerce commission, amounting of the word Is to be explained by the fact out of a main or principal contract against combinations In restraint of to almost 200,000, and the impossibility that a usual method of carrying out the which were said to be covenants in trade is to be effectively enforced, it is Law and the Trusts of any commission supervising the plan of the combination has been to put partial restraint of trade, and were held essential that the national government making of tariffs in advance of their becoming the capital and plants of various individuals, to be enforcible because "reasonably" shall provide for the creation of national effective on every transportation firms, or corporations engaged in adapted to the performance of the main corporations to carry on a legitimate line within the United States to the extent the same business under the control of or principal contract, and under the business throughout the United States. trustees. that would be necessary if their active general contract, and under the general The conflicting laws of the different concurrence were required in the making The increase in the capital of a business language used by the supreme court in I states of the union with respect to foreign of every tariff, has satisfied me that WOULD CONSTITUTE A SPECIAL COURT several -.it would seem that even for the purpose of reducing the corporations make it difficult, if not this power, if granted, should be conferred such incic ntal covenants in restraint cost of production and effecting economy impossible, for one corporation to comply in a very limited and restricted in the management has become as essential of interstate trade were within the inhibition with their requirements so as to carry form. in modern progress as the change of the statute and must be condemned. on business in a number of different Commission Should Probe Change. from the hand tool to the machine. states. When, theriefore, we come to construe In order to avoid such a result, I have I therefore recommend that the interstate To the suggestion that this proposal of the object of congress in adopting the commerce commission be empowered thought and said that it might be well Judges to Have Power to Act in Certain Specified Cases federal incorporation for industrial combinations so-called "Sherman Anti-Trust Act" in whenever any proposed increase of to amend the statute so as to exclude is intended to furnish them a 1890, whereby in the first section every rates is filed, at once, either on complaint such covenants from its condemnation. A refuge in which to continue industrial Wisdom of Federal Incorporation of Industrial contract, combination In the form of a or of its own motion, to enter close examination of the later decisions business under federal protection. It trust or otherwise, or conspiracy in restraint upon an investigation into the reasonableness of the court, however, shows quite clearly should be said that the measure contemplated Companies Suggested—Scope of interstate or foreign trade or in cases presenting the exact question, of such change, and that it be further does not repeal the Sherman antitrust commerce, is condemned as unlawful and that such incidental restraints of empowered, in its discretion, to law and is not to be framed so as made subject to indictment and restraint of Present LawToo Wide trade are held not to be within the law postpone the effective date of such proposed to permit the doing of the wrongs which by injunction and whereby in the second and are excluded by the general statement increase for a period not exceeding it is the purpose of that law to prevent, section every monopoly or attempt that, to be within the statute, the 60 days beyond the date when such but only to foster a continuance and advance to monopolize, and every combination or effect upon the trade of the restraint rate would take effect. If within this of the highest industrial efficiency conspiracy with other persons to monopolize time it shall determine that such increase must be direct and not merely incidental without permitting industrial abuses. any part of interstate trade or commerce, or indirect. The necessity, therefore, Washington, Jan. 7.—The following is is unreasonable, it may then, by time when the business of the court of is denounced as illegal and made "President Taft's message to congress on for an amendment of the statute so as Sure to Meet Opposition. its order, either forbid the increase at commerce does not require the services subject to similar punishment or restraint, "the subject of needed legislation regarding to exclude these incidental and beneficial all, or fix the maximum beyond which of all the judges to reassign the judges we must infer that the evil aimed Such a national incorporation law will the interstate commerce law and covenants in restraint of trade held It shall not be made. If, on the other designated to that court to the circuits at was not the mere bigness of the enterprise, be opposed, first, by those who believe the control of the trusts: in common law to be reasonable, does not hand, at the expiration of this time, the to which they respectively belong and it but it was the aggregation of that trusts should be completely broken To the Senate and House of Representatives: exist. commission shal4 not have completed its should also provide for payment to capital and plants with the express or up and their property destroyed. It will I withheld from my annual message investigation, then the rates shall take In some of the opinions of the federal such judges while sitting by assignment implied intent to restrain interstate or be opposed, second, by those who doubt a discussion of needed legislation effect precisely as it would under the existing circuit judges, there have been intimations, in the court of commerce of such additional foreign commerce, or to monopolize it in the constitutionality of such federal incorporation under the authority which congress has amount as is necessary to bring law, and the commission may continue^ having the effect, if sound, to whole or in part. and even if it is valid, object to regulate commerce between the states its investigation with such results weaken the force of the statute by including "fBTi their annuol compensation up to $10,000. to it as too great federal centralization. and with foreign countries, and said that as might be realized under the law as it Trust Not Necessarily Bad. within it absurdly unimportant It will be opposed, third, by those who Only Second to Supreme Court. I would bring this subject-matter to your now stands combinations and arrangements, and suggesting, will insist that a mere voluntary incorporation attention later in th$ session. Accordingly Monopoly destroys competition entirely The regular sessions of such court The claim Is very earnestly advanced therefore, the wisdom of changing like this will not attract to its I beg to submit to you certain recommendations and the restraint of the full and free by some large associations of shippers should be held at the capitol, but It its language by limiting its application assistance the worst of- the offenders operation of competition has a tendency as to the amendments to the that shippers of freight should be empowered to serious combinations with intent should be empowered to hold sessions in against the anti-trust statute and who to restrain commerce and trade. A combination interstate commerce law and certain considerations different parts of the United States if to direct the route over which to restrain competition or control will therefore propose instead of it a system of persons, formerly engaged in arising out of the operations found desirable and its orders and judgments their shipments should pass to destination, prices. A reading of the opinions of the of compulsory licenses for all federal trade as partnerships or corporations or of the anti-trust law suggesting the wisdom should be made final, subject only and in this connection it has been supreme court, however, makes the corporations engaged in interstate otherwise of course eliminates the competition of federal Incorporation of industrial urged that the provisions of section 15 to review by the supreme court of the change unnecessary, for they exclude business. companies. that existed between them but of the interstate commerce act, which United States, with the provision that from the operation of the act contracts the incidental ending of that competition I^et us consider these objections in their now empowers the commission, after affecting interstate trade in but a small the operation of the decree appealed Interstate Commerce Law. is not to be regarded as necessarily a order. The government is now trying to hearing on complaint, to establish and incidental way, and apply the statute from shall not be stayed unless the supreme In the annual report of the Interstate direct restraint of trade, unless of such dissolve some of these combinations and court shall so order. The commerce through routes and maximum joint rates only to the real evil aimed at by commerce commission for the year 1908, it is not the Intention of the government an all-embracing character that the intention court should be empowered in its to be charged, etc., when no reasonable congress. attention Is called to the fact that between to desist in the least degree in its effort or satisfactory through route shall have and eXect to restrain trade are discretion to restrain or suspend the operation The statute has been on the statute July 1, 1908, and the close of that apparent from the circumstances or are to end these combinations which are today been already established, be amended so of an order of the interstate commerce book now for two decades, and the supreme year, 16 suits had been begun to set aside expressly declared to be the object of monopolizing the commerce of this as to empower the commission to take commission under review pending court in more than a dozen opinions orders of the commission (besides one the combination. A mere incidental restraint country that where it appears that the such action, even when one existing reasonable the final hearing and determination of has construed it in application to commenced before that date), and that and satisfactory route already of trade and competition is not acquisition and concentration of property the proceeding, but no such restraining various phases of business combinations few orders of much consequence had exists, if it be possible, to establish additional within the inhibition of the act, but it go to the extent of creating a monopoly order should be made except upon notice and in reference to various subject matter. been permitted to go without protest routes. This seems to me to is where the combination or conspiracy of substantially and directly restraining and after hearing, unless in cases It has applied It to the union under that, the questions presented by these various be a reasonable proposition. or contract is inevitably and directly a interstate commerce, it is not the intention where irreparable damage would otherwise one control of two competing interstate suits were fundamental, as the constitutionality The Republican platform of 1908 declared substantial constraint of competition, and of the government to permit this ensue to the petitioner. A Judge railroads, to private manufacturers of the act itself was in issue, monopoly to exist under federal incorporation of that court might be empowered to allow In favor of amending the interstate so a restraint of trade, that the statute engaged in a plain attempt to control and the right of congress to delegate is violated. a stay of the commission's order for commerce law, but so as always to or to transfer to the protecting prices and suppress competition in a part to any tribunal authority to establish maintain the principle of competition between wing of the federal government of a a period of not more than 60 days, but The second condition of the act is supplement of the country, including a dozen states, an Interstate rate was denied but naturally competing lines, and state corporation now violating the Sherman pending application to the court of its of the first. A direct restraint and to many other combinations affecting that perhaps the most serious practical order or injunction, then only where his 'avoiding the common control of such act. But it is not, and should not of trade such as is condemned in the interstate trade. The value of a question raised concerned the extent of order shall contain a specific finding lines by any means whatever. One of be, the policy of the government to prevent first section, if successful and used to statute which is rendered more and more the right of the courts to review the orders based upon evidence submitted to the the most potent means of exercising such reasonable concentration of capital suppress competition, is one of the commonest certain in its meaning by a series of decisions of the commission and it was pointed control has been through the holding of which is necessary to the economic development judge making the order and identified by methods of securing a trade of the supreme court furnishes a out that if the contention of the carriers stock of one railroad company by another of manufacture, trade and commerce. reference thereto that such irreparable monopoly, condemned in the second strong reason for leaving the .act as in this latter respect alone were sustained, company owning a competing line. This country has shown power damage would result to the petitioner, section. it is, to accomplish its useful purpose, but little progress had been This condition has grown up under express of economic production that has astonished specifying the nature of the damage. even though if it were being newly enacted, made in the Hepburn act toward the effective It is possible for the owners of a business legislative power conferred by the the world, and has enabled us to Under the existing law, the interstate useful suggestions as to change of regulation of interstate transportation of manufacturing and selling useful laws of many states, and to attempt now compete with foreign manufacturers in commerce commission itself initiates and phrase might be made. charges. In 12 of the cases referred articles of merchandise so to conduct to suddenly reverse that policy so far many markets. It should be the care oi defends litigation in the courts for the to, it was stated, preliminary injunctions tJieir business as not to violate the inhibitions For Government Control. as it affects the ownership of stocks heretofore the government to permit such concentration enforceemnt, or in the defense of its orders were prayed for, being granted of the anti-trust law and yet so acquired, would be to inflict of capital while keeping open the and decrees, and for this purpose it Many people conducting great businesses in six and refused in six. to secure to themselves the benefit of the grievous injury, not only upon the corporations avenues of individual enterprise, and the employs attorneys, who, while subject to have cherished a hope and a belief "It has from the first been well understood," economies of management and of production affected but upon a large body opportunity for a man or corporation the control of the attorney general, act that in some way or other a line says the commission, "that the due to the concentration under one of the investment holding public. upon the initiative and under the instructions with reasonable capital to engage in may b6 drawn between "good trusts" and success of the present act as a regulating control of large Capital and many plants. of the commission. This blending Plan to End Rail Combine. business. If we would maintain our "bad trusts," and that it is possible by measure depended largely upon the If they use no other inducement than of administrative, legislative and judicial present business supremacy, we should I, however, recommend that the law amendment to the anti-trust law to make facility with which temporary injunctions the constant low price of their product functions tends, in my opinion, to give to industrial concerns an opportunity shall be amended so as to provide that a distinction under which good combinations could be obtained. If a railroad and its good quality to attract custom, impair the efficiency of the commission to organize or to concentrate their from and after the date of its passage may be permitted to organize, suppress company, by mere allegation in its bill and their business is a profitable one, by clothing it with partisan characteristics legitimate capital in a federal corporation, no railroad company subject to the interstate competition, control prices, and do of complaint, supported by exparte affidavits, they violate no law. If their actual and robbing it of the impartial judicial and to carry on their large business commerce act shall, directly or indirectly, it all legally if only they do not abuse can overturn the result of days competitors are small In comparison with attitude it should occupy in passing within the lines of the law. acquire any interests of any the power by taking too great profit out of patient investigation, no very satisfactory the total capital invested, the prospect upon questions submitted to It. In kind in capital stock or purchase or of the business. They point with force to result can be expected. The railroad May Doubt Constitutionality. of new Investments of capital by others my opinion all litigation affecting the lease any railroad of any other corporation certain notorious trusts as having grown loses nothing by these proceedings since in such a profitable business is sufficiently government should be under the direct which competes with it respecting into power through criminal methods by Second—There are those who doubt the if they fail, it can only be required to near and potential to restrain them in control of the department of justice and business to which the Interstate commerce the use of illegal rebates and plain cheating, constitutionality of such federal incorporation. «cvabllsh the rate and to pay to shippers the prices at which they sell their product. I therefore recommend that all proceedings act applies. But especially for and by various acts utterly violative The regulation of interstate and ths difference between the higher rate affecting orders and decrees of the But if they attempt by a use of their the protection of the minority stockholders of business honesty or morality, and urge foreign commerce is certainly conferred collected and the rate which is finally interstate commerce commission be preponderating capital, and by a sale of in securing to them the best market the establishment of some legal line of in the fullest measure upon congress, and held to be reasonable. In point of fact brought by or against the United States their goods temporarily at unduly low for ther stock, I recommend that such separation by which "criminal trusts" if for the purpose of securing in the most It usually profits, because it can seldom eo nomine, and be placed in charge of an prices, to drive out of business their prohibition be coupled with a proviso of this kind can be punished, and they, thorough manner that kind of regulation, be required to return more than a fraction competitors, or if they attempt, by exclusive assistant attorney-general acting under that it shall not operate to prevent any on the other hand, be permitted under congress shall insist that it may provide of the excess charges collected." the direction of the attorney general. contracts with their patrons and corporation which, at the date of passage the law to carry on their business. Now, and authorize agencies to carry on that In its report for the .year 1909 the commission threats of non-dealing, except upon such Would Permit Agreements. of such act, shall own not less than onehalf the public, and especially the business commerce, it would seem to be within its shows that of the 17 cases referred contracts or by other methods of a similar of the entire issued and outstanding public, ought to rid themselves of the power, this has been distinctly affirmed to in its 1908 report, only one had In view of the complete control over character, to use the largeness of capital stock of any other railroad company, idea that such a distinction is practicable with respect to railroad companies doing been decided in the supreme court of the rate-making, and other practices of interstate their resources and the extent of their from acquiring all or the remainder or can be introduced into the statute. an interstate business and interstate United States, although five other cases carriers established by the acts output compared with the total output of such stock nor to prohibit any bridges. The power of incorporation has had been argued, and submitted to that of congress, and as recommended in this as a means of compelling custom and railroad company which at the date of tribunal in October, 1909. Certainly under the present anti-trust been exercised by congress and upheld communication, I see no reason why frightening off competition, then they the enactment of the law Is operating a law no such distinction exists. It has by the supreme court in this regard. Of course, every carrier affected by an agreemnts between carriers subject to disclose a purpose to restrain trade and railroad of any other corporation under the act, specifying the classifications of been proposed, however, that the word Why, then, with respect to any other order of the commission has a constitutional to establish a monopoly, and violate the lease, executed of a term not less than form of interstate commerce like the sale right to appeal to a federal court freight and the rates, fares and charges "reasonable" should be made a part of act. 25 years, from acquiring the reversionary of goods across state boundaries and into to protect it from the enforcement of an for transportation of passengers and the statute, and then it should be left to ownership of the demised railroad but foreign countries, may the same power •order which it may show to be primaTacie freight which they may agree to establish, Law to Suppress Abuses. the court to say what is a reasonable !l that such provisions shall not operate to not be asserted? Indeed, it is the very confiscatory or unjustly discriminatory should not be permitted, provided, restraint of trade, what is a reasonable authorize or validate the acquisition, The object of the anti-trust law was fac* that they carry on interstate commerce in its effect and as this application copies of such agreemnts be promptly suppression of competition, what is a reasonable through stock ownership or otherwise] to suppress the abuses of business of the that makes these great industrial may be made to a court in any district of filed with the commission, but subject to monopoly. I venture to think that of a competing line or interest therein in kind described. It was not to interfere concerns subject to federal prosecution the United States, not only does delay all the provisions of the Interstate commerce this is to put into the hands of the violation of the anti-trust or any other with a great volume of capital which, court a power impossible to exercise on and control. How far as incidental to result in the enforcement of the order act, and subject to the right of law. concentrated under one organization, reduced any consistent principle which will insure the carrying on of that commerce it may but great uncertainty is caused by contrariety any parties to such agreemnt to cancel it The Republican platform of 1908 further of decision. the cost of production and made be within the power of the federal government as to all or any of the agreed rates, the uniformity of decision essential declares in favor of such national its profit thereby, and took no advantage to just judgment. It is to thrust upon to authorize the manufacturer of The questions presented by these applications fares, charges, or classifications by 30 legislation and supervision as will prevent of its size, by methods akin to duress, to are too often technical in the courts a burden that they have no goods, is perhaps more open to discussion, days' notice in writing to the other parties the future over-issue of stocks and stifle competition with it. their character and require a knowledge precedents to enable them to carry, and though a recent decision of the supreme and to the commission. bonds by interstate carriers, and in order -of the business and the mastery of a to give them a power approaching court would seem to answer that Under the existing law the commission I wish to make this distinction as emphatic to carry out its provisions I recommend question in the affirmative. (Treat volume of conflicting evidence arbitration, the abuse of which might can only act with respect to an alleged as possible, because I conceive the enactment of a law providing that which is tedious to examine and troublesome involve our whole judicial system in disaster. excessive rate or unduly discriminatory that nothing could happen more destructive no railroad corporation subject to the interstate Even those who are willing to conceda to comprehend. It would not be practice by a carrier on a complaint to the prosperity of this country than commerce act shall hereafter for that the supreme court may sustain such proper to attempt to deprive any corporation made by some individual affected the loss of that great economy in production any purpose connected with or relating federal incorporation are inclined to oppose An Aid to Business Virtue. of the right to the review by thereby. I see no reason why the commission which has been and will be effected to any part of its business governed by it on the ground of its tendency to a court of any order or decree which In considering violations of the antitrust should not be authorized to act in all manufacturing lines by the employment said act, issue any capital stock without the enlargement of the federal power at If undisturbed, would rob it of a reasonable law we ought, of course, not to on its own initiative as well as upon the of large capital under one management. previous or simultaneous payment to it the expense of the power of the state. return upon its investment or would forget that that law makes unlawful, complaint of an individual in investigating I do not mean to say that of not less than the par value of sluch It is a sufficient answer to this argument subject it to burdens which would unjustly methods of carrying on business which the fairness of any existing rate or there is not a limit beyond which the stock, or any bonds or other obligations to say that no other method can be suggested discriminate against it and In favor amendment before its passage were regarded as evidence practice and I recommend the economy of management by the enlargement (except notes maturing not more than which offers federal protection on of other carriers similarly situated of the law to so provide and also of business sagacity and success, of plant ceases and where this one year from the date of their issue), the one hand and close federal supervision What is, however, of supreme importance that the commission shall be fully empowered, and that they were denounced in this act happens. and combination continues beyond without the previous or simultaneous payment on the other of these great organizations is that the decision of such questions beyond any question, to pass this point, the very fact shows intent not because of their intrinsic immorality, to such corporation of not less than that are In fact because -federal shall be as speedy as the nature of upon the classifications of commodities to monopolize and not to economize. but because of the dangerous results the par value of such bonds, or other obligations, they are as wide as the country and are the circumstances will admit, and that for purpose of fixing rates, in like manner toward which they tended, the concentration The original purpose of many combinations or. If issued at less than their entirely unlimited in their business by a uniformity of decision be secured so as it may now do with respect to the of industrial power in the of capital in this country was not par value, then not without such payment state lines. Nor is the centralization of as to bring about an effective, systematic maximum rate applicable to any transportation. hands of the few, leading to oppression of the reasonable market value of confined to the legitimate and proper object federal power under this act likely to be and scientific enforcement of the of reducing the cost of production. and injustice. In dealing, therefore, such bonds or obligations as ascertained excessive. Only the largest corporations commerce law, rather than conflicting decisions On the contrary, the history of most with many of the men who have used Existing Law Powerless. by the interstate commerce commission would avail themselves of such a law, because result. and uncertainty of final trades will show at times a feverish desire the methods condemned by the statute and that no property, service, the burden of complete federal supervision Under the existing law the commission to unite by purchase, combination, for the purpose of maintaining a profitable or other thing than money, shall be Recommends "Court of Commerce." and control that must certainly may not investigate an increase in rates business, we may well facilitate a or otherwise, all the plants in the country taken in payment to such carrier corporation, be imposed to accomplish the purpose of until after it shall become effective and For this purpose I recommend the change by them In the method of doing of the par or other required engaged in the manufacture of a particular the incorporation would not be accepted although one or more carriers may file establishment of a court of the United business, and enable them to bring it price of such stock, bond or other obligation, line of goods. The idea was rife by an ordinary business concern. The with the commission a proposed increase States composed of five Judges designated that thereby a monopoly could be effected back into the zone of lawfulness, without except the fair value of such property, third objection, that the worst offenders In rates or change In classifications, or for such purpose from among the and a control of prices brought losing to the countcy the economy services or other thing ascertained will not accept federal incorporation, is other alteration of the existing rates or •circuit judges of the United States, to about which would inure to the profit of of management by which, In our domestic by the commission and that such act easily answered. The decrees of injunction classifications, to become effective at the be known as the "United States court shall also contain provisions to prevent those engaged in the combination. The trade the cost of production has been recently adopted in prosecutions under of commerce," which court shall be expiration of 30 days from such filing, no the abuse by the improvident or improper path of commerce is strewn with failures materially lessened, and in competition the anti-trust law are so thorough clothed with exclusive original jurisdiction proceeding can be taken to Investigate issue of notes maturing at a period of such combinations. Their projectors with foreign manufacturers our foreign and sweeping that the corporations affected over the following classes of cases: the reasonableness of such proposed found that the union of all plants did not not exceeding 12 months from date, ih trade has been greatly increased. "cy them have but three courses (1) All cases for the enforcement, otherwise change until after it becomes operative. prevent competition, especially where such manner as to commit the commission Through all our consideration of this before them: than by adjudication and collection, On the other hand, if the commission proper economy had not been pursued in to the approval of a larger amount grave question, however, we must insist of a forfeiture or penalty, or by infliction shall make an order finding that an existing of stock or bonds In order to retire such the purchase and in the conduct of the First, they must resolve themselves that the suppression of competition, the of criminal punishment, of any rate is excessive, and directing It notes than should legitimately have been business after the aggregation was complete. Into their component parts in the different controlling of prices, and the monopoly order of the interstate commerce commission to be reduced, the carrier affected may retired. There were enough, however, of states, with a consequent loss to or attempt to monopolize in interstate other than for the payment of by proceedings in the courts, stay the such successful combinations to arouse themselves of capital and effective organization Such act should also provide for the commerce and business are not only unlawful, money. operation of such order of reduction for the fears of good, patriotic men as to the and to the country of concentrated approval by the interstate commerce commission but contrary to the public good, (2) All cases brought to enjoin, set months, and even years. It has, therefore, of the amount of stock and bonds result of a continuance of this movement energy and enterprise ®r second, aside, annul or suspend any order or been suggested that the commission and that they must be restrained and in defiance of the law and under soma to be issued by any railroad company toward the concentration in the hands of punished until ended. requirement of the interstate commerce should be empowered whenever a a few of the absolute control of the secret trust they must attempt to continue subject to this act upon any reorganization, proposed increase in rates Is filed, at commission. prices of all manufactured products. their business in violation of the pursuant to judicial sale or other Asks National Corporation Law. (3) All such cases as under section 3 once to enter upon an Investigation of federal statue, and thus incur the penalties legal proceedings, in order to prevent the Refers to Sugar Trust Case. -of the act of February 19, 1903, known the reasonableness of the increase, and I therefore recommend the enactment of contempt and bring on an inevitable issue of stocks and bonds to an amount as the "Elkins act," are authorized to to make an order postponing the effective by congress or a general law providing criminal prosecution of the individuals in excess of the fair value of the property The anti-trust statute was- passed in for the formation of corporations to engage be maintained In a circuit court of the date of such increase until after named in the decree and their which is the subject of such reorganization. 1890, and prosecutions were soon begun in trade and commerce »mong the such investigation shall be completed. To •United States. associates or under it. In the case of the United States states and with foreign nations, protecting (4) All such mandamus proceedings this much objection has been made on Third, they must reorganize and accept By my direction the attorney general vs. Knight, known as the "sugar trust them from undue interference by :fes under the provisions of section 20 or the part of carriers. They contend that in good faith the federal charter I suggest has drafted a bill to carry out these case," because of the narrow scope of the states and regulating their activities section 23 of the Interstate commerce this would be in effect to take from the recommendations, which will be furnished a federal compulsory license law. the pleadings, the combination sought to owners of the railroads the management so as to prevent the recurrence, under law are authorized to be maintained in a urged as a substitute for a federal incorporation upon reqttest to the appropriate be enjoined was held not to be included national auspices, of those abuses which of their properties and to clothe the interstate •circuit court of the United States. committee whenever it may be desired. law, is unnecessary except to* within the prohibition of the act, because have arisen under state control. Such commerce commission with the Reasons precisely analogous to those reach that kind of corporation which, byvirtue the averments did not go beyond the a lav? should provide for the issue of original rate-making power—a policy which induced the congress to create the of the considerations already advanced, mere acquisition of manufacturing plants ANTI-TRUST LAW AND stock of such corporations to an amount court of customs appeals by the provisions which was much discussed at the time will take advantage voluntarily for the refining of sugar, and did not include equal only to the cash paid in on the in the tariff act of August 5, 1909, of the passage of the Hepburn act in of an incorporation law, while the other that of a direct and intended restraint FEDERAL INCORPORATIONS stock and if the stock be issued for fnay be urged in support of the creation 1905-6, and which was then and has always state corporations doing an interstate upon trade and commerce in the property, then at a fair valuation ascertained of the commerce court. been distinctly rejected and in reply business do not need the supervision or sale an3 delivery of sugar across state under approval and supervision of to the suggestion that they are able, In order to provide a sufficient sum«er the regulation of federal license and boundaries and in foreign trade. The federal authority after a full and complete of Judges to enable this court to be by resorting to the courts, to stay the Government Control of Big Industrial would only be unnecessarily burdened result of the sugar trust case was not disclosure of all the facts pertaining constituted it will be necessary to authorize taking effect of the order of the commission Corporations Favored—Asserts thereby. happy, in that it gave other companies to the value of such property and the the appointment of five additional until its reasonableness shall have The attorney general, at my suggestion, Scope of Present Law is and combinations seeking a similar method interest therein of the persons to whom circuit judges, who, for the purposes been investigated by the courts, whereas, has drafted a federal Incorporation law. of making profit by establishing in it is proposed to issue stock in payment of appointment, might be distributed Too Wide. the people are deprived of any such embodying the views I have attempted absolute control and monopoly in a particular of such property. It should subject the to Uicsj circuits where there la at remedy with respect to action by the to set forth and it will be at the disposition line of manufacture, a sense of real and personal property only of such the present time the largest volume of carriers, they point to the provlsons of There has been a marked tendency In of the appropriate committees ofi immunity against prosecutions in the corporations to the same taxation as imposed 1 us.ness such as the second, third, fourth, the interstate commerce Act' providing for business in this country for 40 years last congress. federal jurisdiction, and where that by the states.within which-it may 1 «eventh and eighth circuits. The act restitution to the shippers -by. carriers, of past toward combinations of capital, and WILLIAM H. TAFT. jurisdiction is- barred in respect to a be situated upon other similar property should empower the chief Justice at atay excessive rates charged in Teases where plant In manufacture, sale and trans- business which is necessarily commensur­ located therein, and it should require The White Hoihe. Jan. 7, 1910. I s.*. ,yr saoftU