7 COMMERCE COURT
PRESIDENT'S PLAN
THE MORXIXG OREGONIAN, SATURDAY, JANUARY 8, 1910.
L5
Taft Would Give Power of Initi
ation to Interstate
Commission.
TWO KINDS OF TRUSTS SEEN
Federal Incorporation Suggested' as
Method of Voluntary Reform.
Wishes Not to Molest Those
yn Do No Wrong.
WASHINGTON. Jan. 7. Resident
Taft'a promised message on the suh
1 jects of rate regulation and the con
trol of the so-called "trusts" was
transmitted to Congress today. It
f o lows closely the line of the Pres
ident's speeches in the past. It sug
gests the creation of a Court of Com
merce, with power to review the acta
of the Interstate Commerce Commis
sion, with some changes in the power
and jurisdiction of the commission it
self, and the enactment of a Federal
Incorporation act, as a means for per
mitting those combinations which ex
ist legitimately to continue to do busi
ness and to reap the benefits of com
bination conducted along lawful lines.
Would Protect Innocents.
A note In the message is the Pres
ident's desire to discriminate between
the concerns that violate the law and
those which have combined for the
lawful purpose of reducing costs by
economies of producion and otherwise.
There is further expression of un
willingness to disturb existing condi
tions in such a manner as to result
in injury to innocent stockholders or
employes.
The President refers at least twice
to this feature. He speaks of the
"potent means of exercising control"
of one railroad company by another
through the ownership of stock, a con
dition that, he says, has grown up un
der legislative power conferred by the
H laws of many states, and he Bays that
"to attempt now suddenly to reverse
that policy, so far as it affects the
ownership of stock heretofore so ac
quired, would be to inflict a grievous
; injury, not only upon the corporation
j afTected, but upon a large body of the
i Investment holding- public."
Some "Trusts Lawful.
Again, comments upon the difference
between the classes of combinations of
capital which have as their purpose the
control of .production and- the elimination
of competition, wltb. the view of advanc
ing prices ultimately, and those which
olm to gain advantages through economies
of management and manufacture. The
second class, he say, has become "as
essential In modern progress as the change
from the hand, tool to the machine."
Federal Incorporation Is suggested as a
means of so controlling these combina
tions as that the good and the bad. may
be distinguished and- kept separate. Pro
vision against the "watering" of stock
is suggested, and the creation of "holding
companies' is provided against.
Pooling to Be Regulated.
The President is not opposed to all
forms of pooling of rates. He would per
mit pooling in some instances under the
regulation of the Interstate Commerce
Commission.
The message opens with a review of the
report of the Interstate Commerce Com
mission with reference to litigation pend
ing to nullify Hs orders. Few orders of
consequence have been permitted to go
unchallenged and the report for 1909 shows
that of 16 cases referred to a year pre
viously only one had been decided in the
Supreme Court. It U of supreme impor
tance that decisions of the complicated
questions involved shall be as sfpeedy as
possible and that uniformity of decision
be secured, to bring about an effective,
scientific and systematic enforcement of
the law. The message then says:
For this purpose I recommend the estab
lishment o? & court of the United States
composed of five Judges desig natei for such
purpose from among- the Circuit Court Judges
of the United States, to be known as the
United States Court of. Commerce, which
court shall be clothed with exclusive orig
inal jurisdiction ovr the following classes
of cases:
rl) All case for the enforcement, other
wiso than by adjudication and collection of
a forfeiture or penalty or by infliction of
criminal punishment, or an order of the In
terstate Commerce Commission other than
for the payment of money.
2 All cases brought to enjoin, set aside,
annul or suspend any order or requirement
of the interstate Commerce Commission.
3) All such cass as under section 3 of
the act of February ll. 190a, known as the
"Elkins Act," are authorized to be main
tained In a Circuit Court of the United
States.
4 All such mandamus proceedings as,
under the provisions of section 20 or section
2;t of the interstate commerce law, are au
thorized to be maintained in a Circuit Court
of the United States.
Injunction Right limited.
The Court of Commerce should be em
powered in Its discretion to restrain or sus
pend the operation of an order of the In
terstate Commerce Commission under the
review pending the final hearing and de
termination of proceeding, but no such re
straining: order should be made except upon
notice and after hearing unless in cases
where lrrreparable damage would other
wipe ensue to the petitioner.
Under the existing law the Interstate
Commerce Commission itself Initiates and
defends litigation in the courts for the en
forcement, or in the defense, of its orders
and decrees, and for this purpose it employs
at tora-eys w ho, while subject to the control
of the Attorney-General, act upon the initia
tive and under the Instructions of the com
m Iks ton. This blending of administrative,
legislative and judicial functions tends. In
my opinion, to Impair the efficiency of the
commission by clothing It with partisan
characteristic and robbing it of the im
partial judicial attitude it would occupy
in passing upon Questions submitted to It,
In my opinion, all litigation affecting; the
Government should he under the direct con
trol of the Department of Justice, and f
therefore recommend that all questions af
fecting orders and decrees of the Interstate
Commerce Commission be brought before or
against the United States eo nomine, and
be placed in charge of an assistant Attorney-General
acting under the direction of
the Attomtiy-aeneraL
The Republican platform declaration on
the subject of pooling agreements is re
viewed, and the message says :
In view of the complete control over rate
making and other practices of interstate
carriers, established by the acts of Congress,
and as recommended in this communication,
I see no reason why agreements between
carriers, subject to the act. specifying the
classification of freight and the rates, fares
Iand charges for transportation of passen
gers and freight which they may agree to
establish, should not be persnitted, provided
copies of such, agreements be promptly Sled
with the commission, but subject to all the
provisions of the Interstate commerce act
and subject to the rlht of any parties to
such agreement to cancel it as to all or any
of the agreed rates, fares, charges or class
ifications by the 60 days notice In writing
to the other parties and to the commission.
Rate Must Be Quoted.
Reference is made to complaints by
shippers that they have insufficient op
portunity to ascertain legal freight rates.
Tho message suggests the requirement
that a carrier be compelled to quote in
writing the rate applicable, subject to a
penalty -of. say $250. for omission or re
fusal to quote the proper rate. Power to
initiate an investigation should be vested
In the Commission, the message says, and
it continues:
I see no reason why the Commis
sion should not be- authorised to act on its
own initiative, as well as upon the complaint
of an Individual, investigating the fairness
of any existing rate or practice; and I rec
ommend the amendment of a law to so pro
vide; and also that the commission' shall be
fully empowered beyond any question to pass
upon the classifications of commodities for
purposes of fixing- rates. In like fanner as
it may now do with respect to the maximum
rate applicable to any transportation. Under
the existing; law the commission may not in
vestigate an increase in rates until after it
shall have become effective; and although
one or more carriers may file with the com
mission proposed Increase In rates or
change In classifications, to become effective
at the expiration of 30 days from such fil
ing;, no proceedings can be taken to Inves
tigate the reasonableness of such proposed
change until after it becomes operative. On
the other hand. If the commission shall
make an order finding; that an existing; rate
is excessive and directing- It to be reduced,
the carrier affected may, by proceedings in
the courts, stay the operation of such order
of reduction for months and even years.
Power to Initiate Given.
The President discusses the suggestion
that the Commission be clothed with
'ratemaking powers," a suggestion
which he eays has been rejected, and in
reply to the suggestion that shippers are
able by appeal to the courts to obtain
a remedy declares that it may be doubted
how effective this remedy is. experience
having shown that "many, perhaps most,
shippers" do not go into court, but add
the excessive loss to the price of their
goods, so that "the public, in effect, has
paid the bills." The message goes on:
I therefore recommend that the Interstate
Commerce Commission be empowered, when
ever any proposed increase of rates Is filed
at onoe, either on complaint or of Its own
notion, to enter upon an Investigation into
the reasonableness of such change, and that
It be further empowered. In ite discretion, to
postpone the effective date of aur-h proposed
increase for a period not exceeding; 60 davs
beyond the date when such rate would take
effect. If, within this- time, it shall deter
mine that such Increase le unreasonable. It
may then, by Its order, either forbid the
Increase at all or fix the maximum beyond
which it shall not be made. If, on the other
hand at the expiration of this time, the Com
mission shall not have completed Its Investi
gation, then the rate shall take effect precise
ly as It would under the existing law. and
the Commission may continue Its Invest ig ac
tion with such results as rmist be realized
under the law as it now stands.
Mr. Taft knows of no reason why
shippers should not be permitted to
designate the routes their shipments
shall take subject to reasonable regula
tion. . Investment to Be Protected.
Not to inflict hardship upon the investment-holding
public, he would pro
vide that the provision that no com
pany subject to the Interstate Com
merce law shall acquire interest in
competing lines be coupled with a pro
viso that it shall not operate to prevent
a company owning at the date of pas
sage of the act not less than 50 per
cent of the stock from acquiring the
remainder. This provision is suggest
ed to secure to minority stockholders
the best market for their stock.
Enactment of a law requiring that
stock or bond issues shall represent
full value received Is advised. The
amendment of the law so as to permit
Injured employes to obtain service upon
companies through their station agents
is urged.
The President thus opens his discussion
of the "trust" question:'
There has been a marked tendency In
business in this country for 40 years last
past toward combination of capital and
plant. In manufacture, sale and transporta
tion. The moving; causes have been sev
eral. First. It has rendered possible great econ
omy; second, by a union of former com
petitors It has reduced the probability of
excessive competition; and. third. If the
combination has been extensive enoug-h, and
certain methods In the treatment of com
petitors and customers have been adopted,
the combiners have secured a monopoly and
complete control of prices or rates. s -v.
The Increase in the capital of a business
for the purpose of reducing the cost of pro
duction and effecting; economy in the man
agement has become as essential In mod
ern progress as the change from the hand
tool to the machine. When, therefore, we
come to construe the object of Congress
in adopting- the so-called "Sherman anti
trust a of in 1890, whereby In the first sec
tion every contract combination. In the form
of a trust or otherwise, or conspiracy in re
straint of interstate or foreign trade or
commerce, is condemned as unlawful and
made subject to indictment and restraint
by injunction; and whereby. In the second
section, every monopoly, or attempt to
monopolizes and every combination or con
spiracy with other persons to monopolize,
any part of Interstate trade or commerce.
Is denounced as illegal and made subject
to similar punishment or restraint, we must
Infer that the evil aimed at was not the
mere bigness of the enterprise, but It was
the aggregation of capital and plants with
the express or Implied intent to restrain
Interstate or foreign commerce, or to monop
olize it In whole .or in part.
Monopoly destroys competition utterly, and
the restraint of the full and free operation
of competition has a tendency to restrain
commerce and trade. A combination of
persons, formerly engaged in trade as part
nerships or corporations, or otherwise, of
course eliminates the competition that ex
isted between them, but the incidental end
ing; of that competition is not to be re
garded necessarily as a direct restraint of
trade, unless of such an embracing; character
that the Intention and effort to restrain
trade are apparent from the circumstances,
or are exipressly declared to be the object
or the commission. A mere Incidental re
straint of trade and competition Is not with
in the Inhibition of the act, but it Is where
the combination or conspiracy or- contract is
inevitably and directly a substantial re
straint of competition, and so a restraint
of trade, that the statute is violated.
Sherman Law Tested.
Mr. Taft says he wishes to distinguish
between the good and bad and to make
the distinction "as emphatic as possible."
The result of the sugar trust case, he
says, "was not happy," because the aver
ments did not include that of a direct
and intended restraint of trade. Follow
ing that decision, however, have come
oases involving constructions of the anti
trust statute in many phases, showing
that it has wide application. From this
he concludes:
The value of a statute which Is rendered
more and more certain in. its meaning; by a
series of decisions of the Supreme Court
furnishes a strong reason for leaving; tho act
as it is, to accomplish its useful purpose,
even though If It were being; newly enacted,
useful suggestions as to change of phrase
might be made.
The purpose of the Administration to
continue the investigation of all sus
pected industrial companies is avowed,
and it is declared that though the work
is heavy, it "is not beyond the power of
the repartment of Justice, provided sufr
fldent funds are provided. But such an
investigation and possible prosecution, the
President eays, must necessarily tend "to
disturb the confidence of the business
community, to. dry up the new flowing
sources of capital and produce a halt in
our present prosperity among the inno
cent many for the faults of the guilty
few." He continues:
The question which I wish In this
message to bring; clearly to the consideration
and discussion of Congress is whether. In
order to avoid such a possible business dan
ger, something cannot be done by which
these business combinations may be offered
a means, without great financial disturbance,
of changing- the character, organization and
extent of their business into one within the
lines of the law, under Federal control and
supervision, securing; compliance with the
anti-trust statute. Many people conducting
great businesses have cherished a hope and
a belief that in some way or other a line
may be drawn between) " good trusts and
SUITS
$50 Suits, $40.00
$45 Suits, $37.50
$40 Suits, $32.50
$35 Suits, $27.50
$30 Suits, $25.00
$25 Suits. $22.50
' ' VVW'Tn'rW
if , , i
" i - V ;
f .iy4:
t v f
i
J
C. H. LANE
REMEMBER
If your clothes
don't suit you when
finished we will
refund your nioney
YOUR APPI
IS YOUR CA
5ARAN
TAL
CE
WHY
HERE is a money value to you in smart,
well-fitting clothes. In any walk of life
your success will be greater if you
dress well Clothes may not always "make
the man," but just the same the smartly
dressed, tailored individual you meet on
the street makes you want to get out of
sight if you are wearing a "hand-me-down."
do you wear "hand-me-downs"
when it will cost you
no more to have a suit of clothes made to your
own measure by reputable tailors who will
guarantee their work?
As we look back and review the experiences of the past year, we
cannot help but feel that the firm business policy" that we have
always maintained has been appreciated by the public, and in no
small degree been responsible for our success.
If we gave you good goods, careful, intelligent attention and low
prices last year, you may be absolutely certain that we shall do as well
or better this year. We are after the man who has ambition and pride
enough to get out of the hand-me-down class. Does that mean vou?
Mr. Lane and Mr. Johnson of the Oxford Tailors have a reputa
tion in Portland for integrity and ability which positively guarantees
any statement herein made.
OVERCOATS
$50 Coats, $40.00
$45 Coats, $37.00
$40 Coats, $32.50
$35 Coats, $27.50
$30 Coats, $25.00
$25 Coats, $22.50
f , t i
; j
v'? V 1ST-
C. E, JOHNSON
LANE
HNSON
OXFORD TAILORS
Seventh and Alder Streets
REMEMBER
If your clothes
don't suit you when
finished we will
refund your money
"bad trusts," and that it la possible by
amendment to the anti-trust law to make a
distinction under which good combinations
may be permitted to organize, suppress com
petition, control price and do it all legally
if only they do not abuse the power by tak
ing too great a profit out of the business.
Distinction Not Feasible.
Now, the public, and especially the busi
ness public, ought to rid themselves of the
idea that such a distinction Is practicable,
or can be introduced into the statute. Cer
tainly, under tlie present anti-trust law, no
distinction exists. It has been proposed,
however, that the word "reasonable" should
be made a part of the statute, and then it
should be left to the court to say what is
a reasonable restraint of trade, what is
reasonable suppression of competition, what
Is a reasonable monopoly. I venture to think
that this is to put into the hands of the
court a power impossible to exercise on any
consistent principle which will insure uni
formity of decision essential to just judg
ment. It is desired not to forg-ef that the
law now makes unlawful certain busi
ness methods which before its pass
age were regarded as evidences of busi
ness sagacity. In dealing with these
men the President wishes to facilitate
a voluntary change in their method of
doing business, insisting through all
that attempts to suppress competition,
control prices and create monopoly
must be ended. He proceeds:
I, therefore, recommend the enactment by
Congress of a general law providing for the
formation of corporations to engage in trade
and commerce among the states and with
foreign nations. Such a law should provide
for the Issue of stock of such corporations
to an amount equal only to the cash paid
in on the stock; and if the stock be Issued
for property, then at a fair valuation ascer
tained, under approval and supervision of
Kederal authority, after a full and com
plete disclosure of all the facts pertaining
to the value of such property, and it should
require such corporations to file full and
complete reports of their operations with
the Department of Commerce and Labor at
regular intervals- Corporations under this
act should be prohibited from acquiring and
holding stock in other corporations (except
for special reasons upon approval by the
proper Federal authorities), thus avoiding
the creation, under National auspices, of the
holding company whicn has been such an
effective agency In the creation of the great
trusts and monopolies.
If the prohibition of the Anti-Trust act
against combinations In restraint of trado
is to be effectively enforced, it is essential
that the National Government shall pro
vide for the creation of National corpora
tions to carry on a legitimate business
throughout tho United States. The con
flicting laws of the different states of the
ITnion, with respect to foreign corpora
tions, make ' It difficult, if not Impossible,
for one corporation to comply with their
requirements so as to carry on a business In
a number of different states. It should be
said that the measure contemplated does
not repeal the Sherman Anti-Trust law,
and Is not to be framed so as to permit the
doing of the wrongs which It Is the pur
pose of that law to prevent, but only to
foster a continuance and advance of the
highest Industrial efficiency without permit
tin? industrial abuses.
If Nre would maintain our present
business supremacy, w should give to in
dustrial concerns an opportunity to reor
ganize and to concentrate their legitimate
capital in a Federal corporation, and to
carry on their large business within the
lines of the law.
Federal Act Practicable.
Second There are those who doubt the
constitutionality of such Federal Incorpora
tion. The regulation of interstate and fer
elgn commerce is certainly conferred in the
fullest measure upon Congress, and if Con
gress shall insist that It may provide and
authorise certain agencies to carry on that
commerce. It would seem to be within its
powers. The power of incorporation has
been exercised by Congress and uphold by
the Supreme Court in this regard.
The third objection, that the worst of
fenders will not accept Federal Incorpora
tion, is easily answered. The decrees of In
junction recently adopted In prosecutions
under the Anti-Trust law are so thorough
and sweeping that the corporations affected
by them have but three alternatives before
them :
First They must resolve themselves into
the component parts In the different states,
with a consequent loss to themselves of
capital and effective organization, and to
the country of centrated energy and enter
prise; or.
Second -In defiance of law and under
some secret trust, they must attempt to
continue their business in violation of the
Federal statute, and thus incur the penalties
of contempt and bring on an inevitable
criminal prosecution of the individuals
named in -the decree and their associates;
or. .
Third They must, reorganise and accept
In good faith the Federal charter I suggest.
A Federal compulsory lloense law, urged as
a substitute for a Federal corporation law.
is ' unnecessary except to reach that kind of
corporation which, by virtue of the con
siderations already advanced, will take ad
vantage voluntarily of any corporation law,
while the other state corporations doing an
interstate business do not need the super
vision or the regulation of a Fedoral license,
and would only be unnecessarily burdened
thereby.
HAWAII TO USE FILIPINOS
Laborers on Isle to Take Places on
Sugar Plantations. '
HONOLULU, Jan. 7. A party of 861
Filipino laborers, secured by two
agents sent to the Philippines by the
Hawaiian Board of Immigration, ar
rived here Thursday on the liner Si
beria, and will be set to work on the
sugar plantations without delays
Owing to the fact that many of the
immigrants from the ' last party of
Portuguese brought to Hawaii have not
remained plantation laborers, this part
of the immigration experiment is con
sidered unsuccessful and no more Port
ugese will be imported. Efforts to in
duce European immigration will be
abandoned until the Filipinos have been
given a trial.
W. B. Babbitt, formerly Superintend
ent of Public Instruction, has been dele
gated by the Immigration Board to go
to Porto Rico for the purpose of secur
ing natives of that place for use on
Hawaiian plantations.
FRANCE IS WORSE
Report of Minister of. Justice
Shows More Crime. '
LARGER CITIES AFFECTED
If troubled with Indigestion, consti
pation, no appetite or feel bilious, grlve
Chamberlain's Stomach and Liver Tab
lets a trial and you will be pleased
with tne result. These tablets invigor
ate the stomach and liver and strength
en the digestion. Sold by all dealers.
Morgan & Robb, 250 Stark street, can
sell your real estate for you.
Premeditated Murders Doubled in
1908 and Deaths From Assault
Increase 4 0 Per Cent Court
Procedure to Be Changed.
PARIS, Jan. 7. Special.) Coupled with
the recent sensational railway murders
and almost daily attacks by criminals in
the streets and suburbs of Paris, the
yearly report of the Minister of Justice,
M. Barthou, give Frenchmen reason for
feeling uneasy.
Accoraing to tne oinciai report, in tne
last year the number of premeditated
murders nearly doubled and deaths from
assault Increased 40 per cent. The great
est increase is in the large cities of Paris,
Bordeaux and Marseilles, while along the
Riveria and in the country districts the
conditions are unchanged.
In explanation of the amount of crime,
sociologists point to the growing abuse of
alcohol in France and poor educational
facilities in crowded districts. The re
cent atrocious murder of Mme. Gouin by
MAN WHOSE REPORT ON GREAT 'iNCREASE IN CRIMINAL
AGGRESSIONS IN FRANCE ALARMS HE WHOLE NATION.
1 i r
- " i i
M. BARTHOU, MINISTER OF JUSTICE.
two French soldiers excites much alarm.
Newspapers refer to the fact that the
army contains 11,000 conscripts convicted
of police offenses.
M. Bartho-j. just before the publication
of his official report, had come into
prominence through the changes he ad
vocated in the trial courto of France.
This step wm brought about largely
through the comments offered liberally by
the newspapers of the United States and
England on the procedure at the Steinheil
trial.
Because of the methods in vogue, the
presiding judge is made to appear in the
role of prosecutor. This right of inter
rogator is to be taken from the presi
dent of the court, and the task of exam
ining the accused and the witnesses will
be confined to the public prosecutor and
counsel for the defense.
FRANCE SCANS KNOX NOTE
Extension of Jurisdiction of Inter
national Prize Court Approved.
PARIS, Jan. 7. France is still con
sidering Secretary Knox' circular note
to the powers proposing an extension
of the Jurisdiction of the international
prize court authorized in 1907 by The
Hague Peace Conference so as to cover
general arbitral questions.
France has supported steadily every
proposition destined to promote inter
national arbitration, and Mm. Burgois
and Renault and Baron D'Estournelles
de Constant, the French members of
the permanent Hague tribunal, to
whom the note has been referred for
their opinion, are expected to report
favorably on the proposition.
An exchange with the British Cab
inet, which has not yet reached an
agreement, is also probable before a
formal answer is given the ' United
States.
The question may become compli
cated by the reservation which it ap
pears "Washington made in the 'first
part of its circular in reference to the
ratification of the International prize
court convention. Washington objects
to' giving the international prize court
appellate jurisdiction over decisions of
the American prize court.
INDIAN VILLAGE WRECKED
I'lood Sweeps Home of Supais, but
Inhabitants All Escape.
FLAGSTAFF, Ariz., Jan. 7. A report
reached here today that the entire In
dian village of the Supais, located in
Cataract Canyon, has been destroyed
by a wall of water 20 feet high that
swept down the canyon early Sunday
morning. Several Indians are missing
and are supposed to have been carried
down in the flood. About three hun
dred Indians escaped to high' ground.
It is supposed that stockmen's dams
and tanks above were washed out dur
ing the heavy rains, letting the flood
down the canyon.
Cataract Canyon is a large canyon
leading into the Grand Canyon about
50 miles west of Grand Canyon Sta
tion. WASHINGTON. Jan. 7. Reports of t!i
destruction of the village of the Supais
received by the Commissioner of Indian
Affairs today-do not indicate Toss of life.
It is reported that nearly all the Indian
school property has been swept away.
MINING MAN FOUND DEAD
11
Wealthy Ienverlte Murdered or
Frozen to Deatn.
CENTRAL CITY, Colo., Jan. 7. The
body of Thomas Irvtn, a wealthy mining-
man of Denver, was found near here
in a clump of bushes today.
It is not known whether he was mur
dered or frozen to death.
India and Ceylon supply seven-eightha of
the world's tea.
ELGIN MINUTCS
ERE'S a
-"- modern ten
dency to com
bine business and
sociability. Punctual
ity so becomes at once
a duty and a courtesy
it's best backed by anj
"IP!
O
LORD ELGIN, Thin Model
Pendant Winding and Setting, t, 1A and
17 jewels and 17 jewel adjusted. Ruby
and sapp-hir balance and center jewel.
Compensating balance. Breguet halr
prlnrc. with mlcrometic regulator.
Exposed winding wheels. Patent re
coiling click and eelf-locklny setting
device. Sunk-second dial. Plates da
maskeened. Cased and timed in case
at the factory.
In Filled Gold Caaea, SKI and up.
In Solid Gold Cases. $96 and up.
Other Elgin models at other prices, accord
ing to grade ot movement and case. All
Elgin Watches are fully guaranteed, and
are sold by jewelers everywhere.
ELGIN NATIONAL WATCH COMPANY,
Elgin. nUnolaJ