MHO NORFOLK WHHKLY NKWS-JOURNAL , FRIDAY , JANUARY M , 1)10. ! )
OFFERS NEW LAWS FOR _
RAILWAYS AND TRUSTS
PRESIDENT TAFT SENDS SPECIA
MESSAGE TO CONGRESS.
SAYS HEPBURN ACT IS INACTIVI
RECOMMENDS NEW SEPARATI
COURT ON RAIL RATE CASES.
TO CUT DOWN INJUNCTION
TOO MANY CONTRARY COUR'
OPINIONS SPOIL PRESENT LAW.
RAILROADS FIND EASY ESCAPI
WOULD REQUIRE UNIFORM RAIL
WAY TRAIN EQUIPMENTS.
TO PROTECT TRAINMEN'S LIVE !
WOULD MAKE SERVICE EASIEI
IN LIABILITY CASES.
DISCUSSES TRUST SITUATIOP
RECOMMENDS FEDERAL CORPOP
ATION LAW FOR ONE THING.
NOT A REFUGE FOR THE CROOK !
NO LEGAL LINE BETWEEN "GOOD
OR "BAD" TRUSTS.
CAN'T TRUST JUDGES TO DECIDI
The Plan to Allow Courts to Detei
mine Between "Reasonable" an
"Unreasonable" Trusts Woul
Threaten Our Whole Court Systerr
Washington , Jan. 7. President Taft'
iipi'dal message to congress recon
mending amendments to the interstat
commerce and the anti-trust laws wa
laid before the hous" of represent ;
tlves today. The reading of the elect
ment was begun without -iclay an
members on the republicau and demi
c.ratic sides followed the clerk closelj
Unusual quiet prevailed during th
reading.
Representative Townsend of Mich
Kim , who was among the most attei
tlve listeners , was understood to hav
In his possession the administrate
bill amending the Interstate commerc
law In accordance with the recommei
dations of the president. This will b
Introduced next Monday.
The message was referred to apprc
jirlate committees.
To the Senate and House of Reprc
sensatives :
I withheld from my annual messag
a discussion of needed legislation in
der the authority which congress hate
to regulate commerce between th
states and with foreign countries an
said that I would bring this snbjec
matter to your attention later in th
session. Accordingly , 1 beg to subml
to you certain recommendations as t
the amendments to the Interstate con
merce law and certain consideration
arising out of the operations of th
anti-trust law , suggesting the wlsdoi
of federal incorporation of imlustrhi
companies.
" "
Interstate Commerce Law.
In the annual report of the interstat
commerce commission for the yea
1908 attention is called to the fac
that between July l , 190S , and th
close of that year , sixteen suits ha
lieen begun to set aside orders of th
commission ( besides one commence
before that date ) , and that few order
of much consequence had been permit
toil to go without protest ; that th
questions presented by these previon
suits were fundamental , as the const
tutlonallty of the act itself was In Is
sue. and the right of congress to dele
gate to any tribunal authority to estal
lish an Interstate ) rate was denied
but that perhaps the most serious prac
tlcal question raised concerned the e >
tent of the right of the courts to re
view the orders of the commission
and It was pointed out that If the cor
tentlon of the carriers In this latte
respect alone were sustained , but III
tie progress had been made In th
Hepburn act toward the effective regi :
latlon of Interstate transportatloi
charges. In twelve of the cases r
ferred to , It was stated , prellmlnar ;
Injunctions were prayed for , beini
granted In six and refused in six.
"It has from the first been well mi
derstood , " says the commission , "tha
the success of the present act as i
regulating measure depended largel ;
upon the facility with which temporar ;
Injunctions could ho obtained. If i
railroad company , by mere allegatloi
in its bill of complaint , supported b ;
exparte allldavlts. can overturn tin
result of days of patient Investigation
no very satisfactory result can bo ex
pocted. The railroad loses nothing b ;
these proceedings , since. If they fall
it can only be required to establish tin
rate and to pay to shippers the difference
enco between the higher rate collectei
and the rate which is finally held t (
lie reasonable. In point of fact , i
usually profits , because It can soldon
bo required to return more than i
fraction of the excess charges collect
cd. "
Injunctions Annul Hepburn Act.
In its report for the year \909 , the
commission shows that of the seven
POINTS IN THE MESSAGE
Hepburn act is Ineffective becaut
rallronds secure Injunctions too ea
ny.
Too many courts now dealing wit
railroad rate cases. Would cstablis
separate court of commerce , with thi
line of cases as its special work. 1
be five Judges , drawing $10,000 eac
annually.
Injunctions should not be grante
against interstate commerce ruling
pending Investigation , except whei
there would be irreparable damage.
Railroads should be allowed to agrt
on rates , under interstate commcrc
commission's supervision.
Would fine railroads $250 for false
Informing shipper regarding rate.
Commission should be empowere
to investigate increase in rates befoi
Increase takes effect , and rule again :
it if unreasonable.
Watering of stocks should be pr
vented by giving interstate commi
slon supervision over stock issues , an
allow stock Issues only on intrins
values.
For benefit of railway trainmen thei
should be required uniform train equl
rnent ; it would save lives.
Service on railways In employer
liability cases should be made moi
easy ; should be possible by service c
any station agent.
The term "trusts" comes from pla
ing business in hands of trustees.
Trusts may be organized for pu
pose of economy or for monopoly. M
nopolies are great evil.
Federal incorporation law woul
make uniform regulation to apply 1
national business ; and would lie !
solve trust problem.
teen cases referred to In its 1908 r
port , only one had been decided I
the supreme court of the Unite
States , although live other cases lin
been argued and submitted to that tr
bnnal In October , 1909.
Of course , every carrier affected I
an order of the commission has a co
stltutlonal right to appeal to a federi
court to protect it from the enforc
mcnt of an order which It may she
to be jirlmn facie confiscatory or u :
Justly discriminatory In its effect ; am
as this application may be made to
court in any district of the Unite
States , not only does delay result I
the enforcement of the order , but grei
uncertainty Is caused by contrariety <
decision.
The questions presented by thef
applications are too often technical i
their character and require a , know
edge of the business and the master
of a great volume of conflicting ev
donee which is tedious to examine an
troublesome to comprehend. It woul
not be proper to attempt to depriv
any corporation of the right to tli
review by a court of any order or d
cree which , if undisturbed , would ro
it of a reasonable return upon its li
vestment or would subject it to bu
dens which would unjustly discrlm
nate against it and In favor of otlu
carriers similarly situated. What 1
however , of supreme Importance , 1
that the decision of such questloi :
shall be as speedy as the nature <
the circumstances will admit , and tlu
a uniformity of decision bo secured s
as to bring about an effective , systen
atlc , and scientific enforcement of tli
commerce law , rather than conflict ! ! !
decisions and uncertainty of final r
suit.
Would Establish "Court of Commerce
For this purpose I recommend tli
establishment of a court of the Unite
States composed of live judges desij
natetl for such purpose from amen
the circuit judges of the United State
to be known as the "United State
court of commerce , " which court sha
ho clothed with exclusive original Ju
Isdictlon over the following classes (
cases :
(1. ( ) All cases for the enforceinen
otherwise than by adjudication an
collection of a forfeiture or penalt :
or by Infliction of criminal punlsl
ment. of an order of the interstat
commerce commission , other than fc
the payment of money.
(2. ( ) All cases brought to enjoii
set aside , annul or suspend any orcle
or requirement of the interstate con
merce commission.
(3. ( ) All such cases as under Sei
tlon 3 of the act of February 19 , 190 !
known as the "Elklns act , " are ai
thorized to be maintained In a ctrcul
court of the United States.
(4. ( ) All such mandamus proceei
Ings as under the provisions of sectlo
20 or section 215 of the Interstate con
merce law are authorized to be mail
tained in a circuit court of the Unite
States.
Reasons precisely analogous to thos
which Induced the congress the com
of customs appeals by the provision
In the tariff act of August 5 , 1909 , ma
bo urged In support of the creation c
the commerce court.
In order to provide a sufllcloiu nun
ber of judges to enable this court t
be constituted. It will bo necessary t
authorize the appointment of five ai
ditlonal circuit court judges who , fo
the purposes of appointment , mlgh
bo distributed to those circuits wher
there Is at the present time the larges
volume of business , such as the Sec
ond. Third , Fourth , Seventh am
Eighth circuits.
The act should empower the chle
justice at any time when the bnslnes
of the court of commerce does not re
qulro the services of all the judges ti
reassign the judges designated to tha
court to the circuits to which they re
spectlvely belong ; and it should nisi
provide for payment to such judge
while sitting by assignment in tin
court of commerce of such addition !
amount as In necessary to bring the
annual compensation up to $10,00
The regular sessions of such com
should be held at the capital , but
should b ( > empowered to hold session
In different parts of the United State
If found desirable ; and Its orders an
judgments should he made Una ) , sul
Jccl only to review by the supreni
court of the United States , with tli
provision that the operation of the d
cree appealed from shall not bo stayc
unless the supreme court shall so o
der.
Would Restrict Injunctions.
Tlie commerce court should bo en
powered In Ha discretion to rostral
or suspend the operation of an oidc
of thi' Interstate commerce comml
sion under review , pending the llni
hearing and determination of the pr
ccedlng , but no such restraining oidc
should be made except upon nolle
and after hearing , unless in case
where irreparable damage would oil
erwlsi' ensue to the petitioner ,
judge of that court might be omjun
ered to allow a stay of the comml
slou's order for a period of not moi
than sixty days , but pending appllc ,
tlon to the court for Its order or 1 :
junction , then only where his ordi
shall contain a specific llndlng base
upon evidence submitted to the jmU
making the order and Identllled 1 :
reference thereto , that such Irro
arable damage would result to tl
petitioner , specifying the nature <
the damage.
Under the existing law , the into
state commerce commission itself i :
Itlates and defends litigation in tl
courts for their enforcement , or in tl
defense of its orders and decrees , an
for this purpose it employs attorney
who. while subject to the control <
the attorney general , act upon the i :
illative and under the Instructions i
the commission. This blending of a <
ininlstratlve , legislative and judlcli
functions tends , In my opinion , to ii ;
pair the elllclency of the commlsslc
by clothing It with partisan charactc
istics and robbing it of the impart ! )
judicial attitude it should occupy I
It. In my opinion all litigation a
it. In my opinllon all litigation a
fecting the government should be ui
der the direct control of the depar
ment of justice ; and I therefore re
ommend that all proceedings , ordci
and decrees of the interstate con
merce commission bo brought by c
against the United States eo nomln
and be placed in charge of an nssls
ant attorney general acting under tl :
direction of the attorney general.
The subject of agreements betwee
carriers with respect to rates has bee
often discussed in congress. Poolin
arrangements and agreements woi
condemned by the general sentlmci
of the people , and under the Sherma
anti-trust law , any agreement betwee
carriers operating in restrain of into
state or international trade or con
merce would be unlawful. The repu
licau platform of 190S expressed tl :
belief that the interstate commcrc
law should be further amended so rte
to give the railroads the right to mal <
and publish tralllc agreements snbjei
to the approval of the commission , bi
maintaining always the principle <
competition between naturally compe
ing lines and avoiding the commo
control of such lines by any mean
whatsoever.
Would Permit Rate Pools.
In view of the complete control ovc
rate-making and other practices (
Interstate carriers established by tli
acts of congress and sis recommende
in communication , I see no reason wh
agreements between carriers , subjei
to the act specifying the classification
of freight and the rates , fares an
charges for transportation of passei
gers and freight which they may agre
to establish should not be permittei
provided copies of such agreement
be promptly filed with the commlssioi
but subject to all the provisions of tli
interstate commerce act , and subje <
to the right of any parties to sue
agreement to cancel it as to all or an
of the agreed rates , fares , charges c
classifications by thirty days' notice I
writing to the other parties and to tli
commission.
Much complaint is made by shij
pers over ( lie ttaio o' the la v .ni'li '
which they are held bound to kno1
the legal rate applicable to any pn
posed shipment , without , as a matte
of fact , having any certain means c
actually ascertaining such rate. It hn
been suggested that to meet thi
grievance carriers should bo requiret
upon application by a shipper , to quot
the legal rate In writing and that th
shippers should be protected In actln
upon the rate thus quoted ; but th
objection to this suggestion Is thr
it would afford a much too easy met !
od of giving to favored shippers in
reasonable preferences and rebates.
I think that the law should provid
that a carrier , upon written requo. .
by an intending shipper , bhuiild quot
in writing the rate or charge appllci
ble to the proposed shipment uncle
any schedules or tariffs to which ca
Her is a party , and that if the part
making such request sutfer damage I
consequence of either refusal or omii
slon to quote the proper rate , or 1
consequence of a mis-statement of th
rate , the carrier shall bo liable to
penalty in some reasonable ainoun
say $250 , to accrue to the Unite
States and to be recovered in a ch
II action brought by the appropriat
district attorney. Such a penalt
would compel the agent of the carrle
to exercise due diligence In quotln
the applicable legal rate , and woul
thus afford the shipper a real ineasur
of protection , while not opening th
way to collusion and the giving o
rebates or other unfair discrimination
Under the existing law the commit
siou can only act with respect to ai
alleged excessive rate or unduly ills
criminatory practice by a carrier 01
a complaint made by some indlvidua
affected thereby. 1 see no reason wh ;
the commission should not bo authoi
Ized to act on Its own Intltlatlvo a
well as on the complaint of an In
dividual Investigating the fairness o
any existing rate or practice , and
recommend the amendment of the lav
to so provide ; and also that the com
mlssslon shall bo fully empowered
beyond any question , to pass upon tin
classifications of commodities for put
poses of fixing rates , In like marine
as It may now do with respect t <
the maximum rate applicable to an ;
transportation.
Under the existing law the commls
slon may not Investigate an increasi
In rates until after It shall have become
come effective ; and , although one o :
more carriers may file with the com
mission or proposed Increase In ratet
or change In classifications , or uthei
alterations of the existing rates 01
classification ! ? , to become effective i
the expirations of thirty daya froi
such tiling , no proceeding can be take
to Investigate the reasonableness i
Hitch proposed change until after
boromoH operative. On the other han
If the commission shall make an ordi
llndlng that an existing rate Is e
cesslvo and directing It to bo reduce
the carrier may. by proceedings I
the courts , stay the operations of sue
order or reduction for months an
even years.
To Investigate Rates In Advance.
It has , therefore , been miggostc
thr. ; the commission' ' be empowere
whenever a proposed Increase In rati
Is Hied , at once to enter uron an 1
vestlgatlon of the reasonableness i
the Increase and to make an ordi
postponing the effective date of sue
an Increase until after Hucli Invent
gatlon .shall bo completed. To th
much objection has been made c
the part of the carriers. They co
tend that this would be , in effect , I
take from the owners of the rallroai
the management of their proper !
and to clothe the Interstate common
commission with the original late-mal
ing power a policy which was nine
discussed at the time of the passage i
the Hepburn act , In I'.lOfi-fi ' , and whlc
was then , and has always been ill
tlnctly rejected ; and , in reply to tl
suggestion that they are able by r
sorting to the courts to stay the takir
effect of the order of the commlsHk
until Its reasonableness shall lirn
been Investigated by the courts , wher
as tli ? people are deprived of an
such remedy with respect to actie
by the carriers , they point to the pr
vision of the interstate commerce a <
providing for restitution to the shi
pers by carriers of excessive rati
charged in cases where the order i
the commission reducing such rat <
are affirmed. It may be doubted ho
effective this remedy is.
Experience has shown that man
perhaps most , shippers do not reso
to proceedings to recover the exce
sive rates which they may have bee
required to pay , for the simple reuse
that they have added the rates pa :
to the cost of the goods and thus o
hanced the price thereof to their cu
tomors , that the public has paid tl
bill. On the other hand , the immem
volume of transportation charges , tl
great number of separate tariffs Ilk
annually with the interstate common
commisssion , amounting to almost 20 (
000 , and the impossibility of any eon
mission supervising the making of ta
iffs in advance of their becoming e
fective on every transportation Hi
within the United States to the extei
that would be necessary if their acth
concurrence were required in the ma
ing of every tariff , has satislied u
that this power , if granted , should 1
conferred in a very limited and r
strlcted form.
Power to Stay Rate Increases.
I therefore recommend that the li
terstate commerce commission be ei :
powered , whenever any proposed i
crease of rates is filed , at once , olthi
on complaint or of its own motio ;
to enter upon an Investigation inl
the reasonableness of such cliangi
and that it further bo empowered , i
its discretion , to postpone the effe
live date of such proposed increas
for a period not exceeding sixty daj
beyond the date when such rate won !
take effect.
The claim is very earnestly advance
by some large associations of shippei
that shippers of freight should be en
powered to direct the route over whlc
their shipments shall pass to destim
lion and in this connection it lias bee
urged that the provisions of sectio
15 of the interstate commerce ac
which now empowers the commissioi
after hearing on complaint , to estal
lish through routes and maximui
joint rates to be charged , etc. , whe
no reasonable or satisfactory throng
route shall have been already estal
llshed , be amended so as to ompowe
the commission to take such actioi
even when one existing reasonable an
satisfactory route already exists , if :
he possible to establish addition :
routes. This seems to me to be
reasonable provision.
The republican platform of 1908 il
clarcd in favor of amending the lute :
state commerce law , but so as alwaj
to maintain the principle of compel
tion between naturally competing line
and avoiding the common control c
such lines by any means whatsoeve
One of the most potent means of e :
ercislng such control has been throng
the holding of stock of one rallroa
company by another company ownin
a competing line. This condition hn
grown up under express leglslatlv
power conferred by the laws of man
states , and to attempt now to suddonl
reverse that policy so far as it affect
the ownership of stocks heretofore s
acquired , would be to inflict a grievou
injury , not only upon ihe corporatio
affected , but on the investment holdln
public. I recommend , however , thr
the law be amended so to provide tlui
on and after its passage no railroa
company subject to the interstate con
merce act shall , directly or indirectl :
acquire any Interests of any kind i"
capital stock , or purchase any rai
road of any other corporation whlc
competes with Its respecting busines
to which the Interstate commerce ac
applies. Hut especially for the prc
tection of the minority stockholder
in securing io them the best marke
for their stock , I recommend that sue
prohibition be coupled with a prc
vision that It shall not operate to pre
vent any corporation which , at th
date of the passage of such act , shal
own not less than one-half of the ei :
tire issued and outstanding capita
stock of any other railroad companj
from acquiring all or the remainder o
such stock ; nor to prohibit any rail
lotid company which at the date of tin
enactment of the law Is operating ;
railroad of any other corporation undo
lease , executed for a term of not les
than twenty-five years , from acqnirim
the reversionary ownership of the dc
mised railroad ; but that such prci
visions shall not operate to anthori/.i
or validate the acquisition througl
stock ownership or otherwise , of :
competing line or interest thorcjn ii
violation of the anti-trust or any othe
law.
To Prevent Stock Watering.
The republican platform of 1908 fur
ther declares in favor of such nationa
legislation and supervision as will prevent
vent the future over-issue of stock !
mil bonds by Interstate carriers , am
n order to carry out Its provisions
I recommend the enactment of a lav >
iirovidlng that no railroad corporation
subject to the interstate commerce aci
shall hereafter for any purpose con
nected with , or relating to any part
jf Its business governed by said act
Issue any capital stock without pre
vlous or simultaneous payment to
of not less than the par value of sue
stock , or any bonds or other obllg
lions ( except notes maturing not moi
than one year from the date of the
Issue ! without the previous or slum
laneous payment to such corporate
of not less than Ihe par value of mu
bonds , or other obligations , or. If I
sued at less than their par \nlue , tin
not without Hiich payment of the rea
unable market value of such bonds (
obligations as ascertained by Ihe I
terstate commerce commission ; an
that no property , services or any otlu
thing than money , shall be taken I
payment to such carrier corporatio
of the par or other required price i
such stock , bond or other obllgalloi
except at the face \alue of such pr
perty , services or other thing as a
certalned by the commission ; and tin
such act shall also contain provlsloi
to pro\ont the abuse by ( lie Impr
vident or Improper Issue of notes m
luring at a period not exceeding tweh
mouths from date. In such manner i
to commit the commission to ( lie a
proval of a larger amount of sloe
or bonds In order to retire such noli
than should legitimately ha\o been r
quired.
Such act should also provide fi
the approval by the Interstate coi
merce commission of the amount i
stock and bonds to be Issued by ai
railroad.
Hy my direction the attorney ge
oral has drafted a bill to carry 01
these recommendations , which will 1
furnished you on request to the a
proprlate committee' whenever it mi
be desired.
To Benefit Railway Trainmen.
In addition to the forgoing amen
incuts of the interstate commerce lai
the interstate commerce commlsslc
should be given the power , after
healing , to determine upon the ui
form construction of those appliance
- -such as- sill steps , ladders , roof ban
holds , running boards and hand braki
on freight cars engaged in Intersta
commerce -used by the trainmen 1
the operation of their trains , the d
fects and lack of uniformity which ai
a.t ) to produce accidents and injnrii
to railway trainmen. The wonderfi
ic-forms effected In the number <
switchmen and trainmen injured 1
coupling accidents , due to the enfor
Ing introduction of safely coupler
Is a demonstration of what can 1
done if railroads are compelled I
adopt proper safety appliances.
The question has arisen in the ope
atlon of the interstate commerce ei
ployer's liability act as to wliethi
suit can be brought against the ei
nloyer company in any place oth <
than that of its home olllce. The rigl
to bring suit under tills act shou !
be as easy of enforcement as tl
rights of a private person not in tl :
company's employ to sue on an on
nary claim , and process in such su
should be properly served if upon tl
station agent upon whom service
authorized to be made to bind tl
company In ordinary actions arisii ;
under the state laws. Hills for bo !
the foregoing purposes have been co
hidered by the house of represent
lives , and have been passed , and ai
now before the interstate common
committee of the senate. I earnest ]
urge that they be enacted into law.
Anti-Trust Law , Federal Incorporatioi
There has been a marked tendene
in business in this country for for !
years last past toward combinatic
of capital and plant In manufactur
sale and transportation. The movin
causes have been several :
First , it lias rendered possible gre ;
economy ; second , by a union of fern
er competitors it has reduced the pro'
ability of excessive competition ; am
third , if the combination has been e :
tensive enough , and certain methoii
in the treatment of competitors bav
been adopted , the combiners have s <
cured a monopoly and complete coi
trol of prices or rates.
The object of the anti-trust law wr
to suppress the abuses of business e
the kind described.
It was not to interfere ; with a grer
volume of capital which , concentra
ed under one organization , reduced tli
cost of production and made us prof
thereby , and took no advantage of it
opportunity to suppress competitio
with it.
1 wish to make tills distinction n
emphatic as possible , because I coi
ceive that nothing could happen moi
destructive to the property of thi
country than the loss of that grer
economy in production which has bee
and will be effected In all manufai
tuning lines by the employment c
large capital under one managemen
I don't mean to say that there 1
not ii limit beyond which the ecom
mic of management by the enlargi
ment of plant cases ; and where thi
happens and combination continues b <
yond tliis point , the very fact show
intent to monopolize and not to n
conomize.
The original purpose of many con :
blnatlons of capital in this countr
was not confined to the legltimat
and proper object or reducing the cos
of production. On the contrary , th
history of most trades will show a
times a feverish desire to unite b ;
purchase , combination , or otherwis
all fthe plants in the country engage
in the same business.
No "Good" or "Bad" Trust Dlstinctior
Many people conducting great bus :
nesses have cherished a hope and a be
lief that In some way or other a Urn
may be drawn between "good trusts
and "bad trusts , " and that it Is pos
slble by amendment to the antl-trus
law to make a distinction under whicl
iood ; combinations may be permittei
: o organize , suppress competition , con
trol prices , and do It all legally if enl ;
they do not abuse the power by takini
too great profit out of the business
They point with force to ceitain no
torions trusts as having grown lnt (
power through criminal methods , bj
the use of illegal rebates and plali
cheating , and by various acts utterl ;
vlolatlve of business honesty or moral
Ity and urge the establishment 01
some legal line of separation by whicl
'criminal trusts" of this kind can b (
mulshed , and they , on the other ham
jo permitted under the law to carrj
nn their business. Now the public , am
specially the business public , ought tc
rid themselves of the idea that sucl
i distinction is practicable or can be
ntroduced into the statute. Certain
y under the present anti-trust law ne
such distinction exists. It has been
proposed , however , that the won
reasonable' should be made a part ol
ho statute and then it should be
eft to the court to say what Is ,1
reasonable restraint of trade , what if
i reasonable suppression of competl
Ion , what Is a reasonable monopoly
venture to think that this is to put
into the hands of the court a powi
Impossible to exorcise on any consl
tent principle which will Insure tl
uniformity of decision essential to jn
judgment : It Is to trust upon tl
court a burden that they have no pr
cedentH to enable them to carry , ante
to give them a power approaching tl
arbitrary , the use of which might I
volve our whole judicial system !
disaster.
If the prohibition of the antl-tru
act against combinations In restraii
of trade Is to be effectively enforce
It is essential that the national gover
ment shall provide for the creatli
of national corporations to carry i
a legitimate business throughout tl
I'nlted States. The conflicting lav
of the different states of the unli
with respect to foreign corporalIm
make it dilllcult If not Impossible , f <
one corporation to comply with the
requirements so as to carry on bus
ness In different states.
New Plan No RefUQc for Bad Trust
Regarding the suggestion that th
proposal of federal Incorporation fi
industrial combinations is intended
furnish them a refuge In which
continue Industrial abuses under fe
oral protection , It should be said th
the > measure contemplated does n
repeal the Sherman anti-trust law ai
Is not to be framed so as to perm
the doing of the wrongs which It
the purpose of that law to proven
but only to foster a continuance ai
advance of the highest Industrial e
llcloney without permitting industrl
abuses.
Such a national incorporation la
will be opposed , first , by those who b
Move that trust should be complete
broken up and their property destro
ed. It will be opposed second , 1 :
those who doubt the constitutional !
of such federal Incorporation anil eve
if it Is valid , object to It as ti
great federal centralization. It wl
he opposed , third , by those who w !
Insist that a mere voluntary Incorpor
tion like this will not attract to I
acceptance the worst of the offende
against the anti-trust statute and wl
will therefore propose instead of
a system of compulsory licenses ft
all federal corporations engaged
interstate business.
Let us consider these objections
their order. The government is no
trying to dissolve some of these coi
hinations and it is not the intciitic
of the government to desist in tl
least degree in its effort to end then
combinations which are today moiiop
llzing the commerce of this countrj
that where it appears that the acquls
tion and concentration of property f
to the extent of creating a monopo
or of substantially and directly r
straining interstate commerce , it
not the intention of the governmei
to permit this monopoly to exist uneli
federal incorporation or to transfi
to the protection of the federal go
eminent of the state corporation no
violating the Sherman act. IJtit it
not , and should not be , the policy i
the government to prevent reasonab
concentration of capital which is n
cessary to the economical developmei
of manufacture , trade and commerce
For Federal Incorporation Law.
I therefore recommend the enac
ment bv congress of a general la
providing for the formation of co
porations to engage in trade and con
merce among the states and with fo
Hgn nations , protecting them from ui
due interference by the state and regi
lating their activities , so as to prevei
the recurrence , under national an
pices , of those abuses , which ha\
arisen under state control. Such
law should provide for the issue i
stock of such corporations to a
amount equal only to the cash pal
in on the stock ; and if the stock I
issued for property , then at a fa
valuation , ascertained under approvs
and supervision of federal authorit ;
after a full and complete disclosure e
all of the facts pertaining to the vain
of such property and the interei
therein of the ? persons to whom It I
proposed to issue stock in paymei
of such property.
Second. There are those who doiil
the constitutionality of such feden
incorporation. The regulation of ii
tor-state and foreign commerce is ce
talnly conferred in the fullest meai
ure upon congress.
The third objection , that the wort
offenders will not accept federal ii
corporation , is easily answered. Th
decrees of injunction recently adopte
in prosecutions under the anti-trus
law are so thorough and sweeping th.i
the corporations affected by them hav
but three alternatives before them :
First , they must resolve themselve'
into their component paits in the dii
ferent states with consequent loss t
themselves of capital and effectlv
organization and to the country of coi
centrated energy and enterprise , c
Second , in defiance of law and nude
some secret way they must attempt t
continue their business in violation c
the federal statute , and thus incu
the penalties of contempt and bring o
an inevitable criminal prosecution c
the individuals named In the decre
and their associates ; or
Third , they must re-organize an
accept in good faith the federal chai
ter issuing.
The attorney general at my suggec
tions. has drafted a federal incorponi
tion bill , embodying the views I hav
attempted to set forth , and it will a
the disposition of the appropriate com
mlttees of congress.
Signed ,
William H. Taft
"The White House , January 7. ; 910. '
FRIDAY FACTS.
Mr. and Mrs. S. G. Dean have gem
to Wataga , 111. , to visit Mr. Dean' ;
father , who Is 111.
Henry Klosner of Creighton was li
town at noon on his way to Illoomileh
to visit his son. He has recently re
turned from an extended visit to Tex
as.
Miss northa Wilkins , who recentl ;
returned from the western coast , Is go
ing to Lincoln to attend the university
where she will finish up her work litho
the music conservatory.
Hov. J. F. Poucher of Stanton wai
In the city.
Mr. and Mrs. C. H. Taylor of Lin
coin wore In the city.
Mr. and Mrs. I. T. Cook have loft
for an extended trip to Iowa and Illl
nols.
nols.Dr.
Dr. William Noyes of Newport wat
In the city In consultation with Dr
rashjean.
William Graves has gone to TllUen
where ho Is employed lu the ice pack
lug business. f
Mr. and Mrs. Harry Leggett of Dal
las , S. I ) . , are visiting at the home of
W. N. Huso.
Sheriff C. S. Smith and County At
lorney James Nichols of Madison \\en-
In the city.
Mrs. Ira M. Hamilton Is reported III.
Mrs. Samuel Cokoloy is reported 111.
Horn , to Mr. and Mrs. S J. Hash , a
son.
Horn , to Mr. and Mra. Guy \\ouu
bury , a son.
A. C. Steal' , who has been conllnei !
to his home with the grip , Is now able
to be back at his work.
Mr. and Mrs. William MeCuno have
gone to Omaha , where Mr. MeCuno
, will undergo an operation.
| Mr. and Mrs. C. A. Wood have gone
to Oldhani. S. D. , where they will at
tend the funeral of Mrs. Wood's sister.
William Denton and family ha\c
moM'd Into ( lie house formerly occn
pled by the H. Lv Snyder family , at
( idI South Klghth Hired.
Ittirtoii Lyons of Enola was in t he-
city , accompanied by his daughter.
Miss Margaret Lyons , who Is being
treated for eye trouble hero.
Dr. .1. H. Mackay has a letter from
Mrs. Mackay. who Is visiting at Fre
mont , stating that all Fremont stores
went on a cash basis January I.
H. ( ! . Schulz , who has for some time
been employed on a ranch near Rocky
Ford , Colo. , has returned to Norfolk
and will make his home here with his
parents.
The second floor of Ihe Hayes block
on Norfolk avenue Is being remodeled
and will be turned into housekeeping
rooms. The physicians who occupied
It have moved out.
Walter Harnhart and Mrs. Mae Sel
ler are ill at the Methodist hospital ill
Omaha. Walter llarnhart and Mrs.
Seller are son and daughter of City
Attorney H. F. Harnhart of Norfolk
Chadnm Journal : General Supenln
tendent S. M. Hraden came up from
Norfolk in his private car to Chadnm
on No. 3 Tuesday , and did not get in
till 2 p. m. , on account of heavy snow
east of hone.
William Currier , who has been em
ployed at Spokane and Seattle , Wash. ,
by L. A. Rothe , vice president of the
Hawkeye Fuel company , has returned
to Norfolk and accepted a position
witli the Oxnard hotel.
The unfortunates at the Norfolk
state insane hospital have not suffer
ed from the cold. Nearly 500 tons of
coal have been burned at the Insti
tution to keep the buildings warm.
There is no scarcity of coal at t he-
hospital.
Ernest Malthes , a former citizen of
Stanton but now of Sheridan , Ore.lio
has not been in this section of Hu-
country for live years , was In the C'lty
visiting with the W. L. Lehman family.
Mr. Matlhes wont te > lladar Wednes
day to visit relatives.
A Norfolk citizen Is out with a bet
of $100 to $50 that Commander Rob
ert E. Peary did not reach the pole.
To win this bet the Peary records
must go the same route sis did those-
of Dr. Cook , and get an investigation
by the University of Copenhagen.
Norfolk friends of Mrs. Carl
Schwartz were shocked Thursday by
-
the news of her death at Stanton. Mis.
Schwartz is an old pioneer of Stanton f
county , having come to this part of '
the country forty-three years ago. Her
funeral will probably take place Sun
day.
day.S.
S. A. Miskiminins and family have-
moved into the apartments on the second
end tloor of the C. S. Hayes building.
The suite was formerly occupied by
two Norfolk physicians. Mrs. Miskim
inins has arrived from Omaha with
her son and is ready to occupy the
apartments , which have been remod
eled.
Bonds were filed in Justice Lam
bert's court Friday morning by the C.
& N. W. II. R. Co. . and the case of
Albert Mueller of Hadar against that
road , In which Mueller is endeavoring
to recover money in payment for mer
chandise ho sold a work crew some
time ago , The case was appealed to
the district court.
Many German Lutheran ministers
from the surrounding towns arrived in
the city to attend the annual confer
ence of the Central North Nebraska
Lutheran Missouri synod ministers ,
which was called to order at the Christ
Lutheran church at 2 o'clock Friday
afternoon. The Lutheran doctrines
and other church matters will he ills-
cussed at the conference.
From the various public sales and
auctions of farm property , machinery. pg ;
cows and horses , it can well be said
that the farmer is prospering. The
high selling prices which when offered
are readily accepted show the value-
given this property by farmers who
make up the average bidder. Ordinary
milk cows at recent auctions have .sold
for $45 to $50 , and horses went at $200
apiece with many anxious bidders. Al
though all of last year's farm products
have not yet been marketed , the farm
ers are preparing for a big year In
1910.
Fireman J. W. Evans has resigned
his position and will start up In busi
ness for himself.
Engineers R. W. Watson , Charles
Ryan and H. II. Hughes have gone to
the Black Hills to work.
Herman Witto , night foreman of the
roundhouse here , has been transferred
to the roundhouse in South Omaha.
II. R. Gleason will take his place here.
Charles Fry , a machinist of Chicago ,
went to work in the shops here this
morning.
Mrs , Potras Is suffering from a very
sore foot , having stopped on a nail
yesterday.
Miss Geneva Moollck wont to Wayne
this morning to visit her cousin , Miss
Bessie Ettor , who Is attending school
thero.
Mrs. Hattlc Barton and daughter.
Elizabeth , and Mrs. Ella Ilorron and
son Bertie returned yesterday to their
home in Omaha , after a brief visit with
their brother-in-law , M. Moollck.
1