| Show SO s- LH COMMERCE THE TREATED I PRESIDENT HANDLES PORTANT TOPICS IN MESSAGE WANTS UfT BI TWO IM- HIS TO CONGRESS NEW COURT CREATED Tribunal Would Hear Cases Arising Under the Interstate Law— Chief Executive Also Urges Federal Incorporation Statute to Suppress Abuses and Not to Destroy Legitimate Combinations of Capital X Washington NTan 7—Needed legislation the Interstate commerce law concerning fcnd tlia cunLiol of Liuals formed the subject of President Taft’s special message to congress calls attenThe president tion to the partial failure of the present commerce law to get results because of the frequent appeals from its decisions to federal courts and the slowness of the cases these supreme court in deciding The message says: “It would not be proper to attempt to of the right to deprive any corporation the review by a court of any order or decree which would rob It if undisturbed of a reasonable return upon Its investment or would sublect It to burdens which would discriminate unjustly against it and In favor of other carriers What is however of similarly situated supreme importance is that the decision of such questions shall be as speedy as will adthe nature of the circumstances mit and that a uniformity of decision be secured so as to bring about an effective systematic and scientific enforcement of the comerce law rather than decisions and uncertainty of conflicting final result Recommends “Court of Commerce” “For this purpose I recommend the establishment of a court of the United of five Judges States composed designated for such purpose from among the circuit judges of the United to States be known as the ‘United States court of commerce’ which court shall be clothed with exclusive original jurisdiction over the following classes of cases: othAll cases for the enforcement “(1) erwise than by ajudication and collection of a forfeiture or penalty or by infliction of criminal of any punishment comorder of tho interstate commerce mission other than for the payment of money to enjoin set “(2) All cases brought aside annul or suspend any order or requirement of the Interstate commerce commission "(3) All such cases as under section 3 of the act of February 19 1903 'known as the ’Elkins act’ are authorized to be maintained In a circuit court of the United States “(4) All such mandamus proceedings as under the provisions of section 20 or 23 of the interstate commerce law 'finauthorlzed to he maintained 4n a circuit court of the United States to those "Reasons analogous precisely which induced the congress to create the court of customs appeals by the provisions In the tariff act of August 5 1909 may be urged in support of the creation court of the commerce "In order to provide a sufflrient number of judges to enable this court to be constituted it will be necessary to authorize the appointment of live additional circuit judges who for the purposes of appointment might be distributed to those circuits where there is at the present time the largest volume of business such as the second third fourth seventh and eighth circuits The act should empower the chief justice at anv time when the business of the court of commerce does not require the services of all the judges to reassign tho judges designated to that court to the circuits to which they respectively belong and it should also provide for payment to such judges while sitting by assignment in the court of commerce of such additional amount as Is necessary to bring their annual up to $10000 compensation Only Second to Supreme Court “The regular sessions of such court should be held at the eapitol but it to hold sessions in should be empowered different parts of the United States If found desirable and its orders and judgments should be made final subject only to review by the supreme court of the United States with the provision that the operation of the decree appealed from shall not be stayed unless the supreme court shall so order The commerce court in Its discretion to should be empowered restrain or suspend the operation of an order of the interstate commerce commission under review pending the final hearing and determination of the proceeding but no such restraining order should be made except upon notice and afetr hearing unless In cases where irreparable 'damage would otherwise ensue to the peA judge of that court might titioner to allow a stay of the be empowered commission's order for a period of not more than 60 days but pending application to the court of its order or injunction then only where his order shall contain a specific finding' based upon evidence submitted to the judge making the order and identified by reference thereto that such Irreparable damage would rethe nasult to the specifying ture of the petitioner damage" “Under the existing law the Interstate Itself initiates and commerce commission defends litigation in the courts for the or in the defense of Its orenforcement ders and decrees and for this purpose It employs attorneys who while subject to the control of the attorney general act upon the Initiative and under the instrucThis blending tions of the commission and Judiof administrative legislative In my opinion to cial functions tends Impair the efficiency of the commission by clothing It with partisan characteristics and robbing it of the impartial Judicial attitude it should occupy in passto It submitted In ing upon questions all litigation the affecting my opinion should be under the direct government and control of the department of justice I therefore recommend that all proceedings affecting orders and decrees of the commerce commission be Interstate by or against the United States brought eo nomine and be placed In charge of an assistant attorney general acting under of direction the attorney general’’ the Would Permit Agreements the subject of railroad pools the president agreements Coming to traffic and says of 1908 ex“The Republican platform the belief that 'the Interstate pressed commerce law should be further amended so as to give the railroads the right to make any public traffic agreements of the commissubject to the approval sion but maintaining always the prinbetween ciple of 'competition naturally lines and avoiding the comcompeting mon control of such lines by any means whatsoever “In view of the r complete control over and other practices of Interstate carriers established by the acts of congress and as recommended in this communication I see no reason why between carriers subject to agreements of tlie act specifying the classifications freight and the rates fares and charges and for transportation of passengers which they may agree to estabfreight lish should not be permitted provided copies of such agreements be promptly filed with the commission but subject to of the Interstate comall the provisions merce att and subject to the light of any parties to such agreement to cancel It as to all or any of the agreed rates or classifications by 30 fares charges days’ notice in W’rltlng to tho other parties and to the commission” Other Amendments Urged In accord with other declarations of the the president Republican platform of 1908 the intei state that further recommends commerce law Vie amended bo as to provide that no railroad company subject to the commerce act shall directly or inof any directly acquire any Interests or or purchase kind in capital stock lease any railroad or any other corporawith it respecting tion which competes the Interstate comto which business merce act applies that a law be enacted providing “that no railroad corporation subject to the Interstate commerce act shall hereafter for any purpose conor nected with relating to any part fit its business governed by said act issue any previous or simulcnpital stock without taneous payment to it of not less than the par value of such stock or any bonds or other obligations (except notes maturmore than one year from the ing not date of their issue) without the previous or simultaneous payment to such corless than the pnr value poration of not or or other obligations of such bonds if issued at less than their par value the then not without such payment ofbonds reasonable market value of such as ascirtained by the inor obligations and that terstate commerce commission or other thing than service no property money shall be taken in pajment to such of the par or other carrier corporation or othbond of such stock required price the fair value of er obligation except services or other thing assuch property certained bv the commission” Would Prevent Wrong Practices The president continues: “I believe these suggested modifications in and amendments to the interstate commerce act would make it a complete and eifectlve measure for securing reasonableness of rates and fairness oi practices in the operation of interstate railioad lines without undue preference to any Individual or class over any others the attorney general “By my direction has drafted a bill to carry out these which will be furrecommendations nished upon request to the appropriate It may be desired whenever committee "In addition to the foregoing amendments of the interstate commerce law commission the interstate commerce should be given the power after a hearing to determine upon the uniform construction of these appliances— such as sill steps ladders roof hand onholds running boards and hand brakes freight cars engaged In Interstate commerce— used by the trainmen in the operation of trains in the defects and lack of uniformity which are apt to produce accidents and The woninjuries to railway trainmen derful reforms effected in the number of and trainmen injured by coupswitchmen inling acrldents due to the enforced is a demontroduction of safety couplers stration of what can be done if railroads are compelled to adopt proper safety appliances “The question has arisen in the operations of the interstate commerce employers’ liability act as to whether suit can combe brought against the employer pany in any place other than that of its home office The right to bring the suit under this act should bo as easy of enas tho right of a private perforcement son not in the company’s employ to sue on an ordinary claim and process In each suit should be sufficiently served If upon the station agent of the company upon to Is made whom service is authorized in ordinary actions bond the company arlsihg under state laws haveBillsbeenfor both conthe foregoing purposes of sidered by the house representatives and have 'been passed and are now before the Interstate commerce committee I earnestly urge that they of the senate be enacted into law” Control of the Trusts The second part of the message Is devoted to the control of trusts After a of trusts good and discussion lengthy unbad and the success of prosecutions act Mr Taft der the Sherman says: “It is the duty and purpose of the executive to direct an investigation by the deof justice through the grand partment or otherwise into the history organjury and purposes of all the industrial ization with respect to which there is companies suspicion that any reasonable ground for for a purpose have been organized they are business on a plan and conducting of the which is In violation law The work is a heavy one but it is not beyond the power of the department of justice if sufficient funds are to carry on the investigations furnished and to pay the counsel engaged in the and But such an investigation work whose of corporations possible prosecution prosperity or destruction affects the comfort not only of stockholders but millions of wage earners employes and associated distradesmen must necessarily tend to comturb the confidence of the business munity to dry up the now flowing sources and of capital from its places of hoarding produce a halt in ouF present prosperity that will cause suffering and strained circumstances among the Innocent many for faults of the guilty few The question wish in this message to bring which and decision clearly to the consideration of the congress whether to avoid business cannot be done by danger something combinations which these business may be offered a means without great finanthe charcial disturbance of changing acter organization and extent of their business into one within thp lines of the law under federal control and supervision securing compliance with the statutes For Government Control In the industrial combina“Generally tions called ‘trusts’ the principal business Is the sale of goods in many states and In foreign markets in other words the Interstate and foreign business far done In any one the business exceeds This fact will justify the fedstate In granting a federal eral government charter to such a combination to make and sell in interstate and foreign commerce the products of useful manufacture under such limitations as will sewith the cure a compliance law It Is possible so to frame a statute that while it offers protection to a federal company against harmful vexatious Invasion by the states and unnecessary it shall subject it to reasonable taxation and control by the states with respect to lt purely local business great busipeople conducting "Many nesses have cherished a hope and a belief that in some way or other a line trusts' and may be drawn between It‘good Is possible by ‘bad trusts' and that law to make amendment to the a distinction under which good combinations may be permitted to organize supcontrol prices and do press competitionIf It all legally only they do not abuse the power by taking too great profit out of the business They point with force to certain notorious trusts as having grown Into power through criminal methods by the use of Illegal rebates and plain cheatviolative ing and by various acts utterly and of business honesty or morality urge the establishment of some legal line of by which ‘criminal trusts’ of separation this kind can be punished and they on the other hand be permitted under the Now law to carry on their business the public and especially the business of the ought to rid themselves public is practlc- Idea that such a distinction - or can be Introduced Into the stat- “in considering violations of the antinot to trust law we ought of course unlawful that law makes forget that of currying on business which methods before Its passage were regarded as evidence of business sagacity and success this act and that they were denounced In immoralnot because of their intrinsic because of the dangerous rer ity but consuits toward which they tended the of industrial power Iff the centration oppreshands of the lew leading totherefore In dealing sion and injustice with many of the men who have used by the statute the methods condemned for the purpose of maintaining a profitable we may well facilitate a able business by them In the method of dochange ing business and enable them to bring It without back Into the zone of lawfulness losing to the country the economy of in our domestic management by which trade the cost of production has been and in competition materially lessened with foreign manufacturers our foreign trade has been greatly Increased Aks National Corporation Law “I therefore recommend the enactment by congress of a general law providing for the formation of corporations to enamong the gage in trade and commerce states and with foreign nations protecting themandfrom undue interference by the states their activities na-eo regulating under as to prevent the recurrence of those abuses which tional auspices have arisen under state control Such a law should provide for the issue of stock to an amount equal of such corporatitfnas only to the cash paid In on the Btoek and if the stock be Issued for property then at a fair valuation ascertained under approval and supervision of federal authority after a full and complete disclosure of all the facts pertaining to the value of such property and the interest of the persons to whom It is therein to issue stock in payment of proposed such property It should subject the real and personal property only of such coras imto the same taxation porations posed by thf states within which It may be situated upon other similar property located therein and it should require to file full and comsuch corporations plete reports of their operations with the and labor at department of commerce intervals Corporations oiganlzed regular under this aet should be prohibited from acquiring and holding stock in other corporations (except for special reasons upon approval by the proper federal authorthus avoiding the creation under ity) national auspices of the holding company with subordinate corporations in different states which has been such an effective agency in the creation of the great trusts and monopolies State Laws Conflict act “If the prohibition of the in restraint of trade against combinations enforced it is essenis to be effectively tial that the national government shall provide for the creation of national corto cairy on a legitimate busiporations ness throughout the United States The the different states of conflicting the union with respect to foreign corporaif not impossible tions make It difficult for one corporation to comply with their so as to carry on business requirements in a number of different states “To tlie suggestion that this proposal of for industrial comfederal incorporation Is intended to furnish them a binations which to continue industrial refuge in under business federal protection It should he said that the measure contemdoes not repeal the Sherman antiplated law and is not to be framed so as trust to permit the doing of the wrongs which it is the purpose of that law to prevent hut only to foster a continuance and advance of the highest Industrial efficiency without permitting industrial abuses law will “Sueh a national incorporation be opposed first by those who believe that trusts should be completely broken It will up and their property destroyed be bpposed those who doubt seeoqd'4'y the constitutionahty Vf such federal inand even if It Is valid object corporation to it as too great federal centralization It will be opposed third by those who will insist that a mere voluntary incorlike this will not attract to Its poration assistance the worst of the offenders the statute and who against will therefore propose Instead of it a system of compulsory licenses for all federin interstate al corporations engaged business these “Bet us consider objections in their order The government is now tryto some of these combinadissolve ing tions and it Is not the intention of the to desist in the least degree government to end these combinations in its effort the comwhich are monopolizing merce of this country that where it apand concepears that the acquisition ntration of property go to the extent of of substantially and creating a monopoly Inters! commerce directly restraining it is not the Intention of the government to permit this monopoly to exist under or to transfer federal to incorporation the protecting wing of the federal of a state corporation now vioact But It is not lating the Sherman and should not be the policy of the government to prevent reasonable concentration of capital which Is necessarv to of manufacthe economic development ture trade and commerce May Doubt Constitutionality “Second— There are those who doubt the of such federal incorpoconstitutionality ration The regulation of interstate and is certainly conferred foreign commerce in the fullest measure upon congress and if ror the purpose of securing in the most kind of manner that thorough regulation congress shall insist that it may provide and authorize agencies to carry on that commerce It would seem to be within its this has been distinctly affirmed power with respect to railroad companies doing an interstate business and interstate The power of incorporation has bridges been exercised and upheld by oongress court In this regard by the supreme then with respect to any other Why form of interstate commerce like the sale of goods across state boundaries and Into foreign countries may the same power It is the very not be assorted? Indeed fact that they carry on Interstate commerce that makes these great industrial concerns to federal subject prosecution How far as Incidental to and control the carrying on of that commerce it may be within the power of the federal government to authorize the manufacturer of goods is perhaps more open to discussion though a recent decision of the supreme court would seem to answer that question In the affirmative “The third objection that the worst offenders will not accept federal incorporation is easily answered The decrees of in prosecuinjunction recently adopted tions under the law are so thorough and sweeping that the corporations affected by them have but three courses before them "First they must resolve themselves into their component parts In the different states with a consequent loss to themselves of and effective organization and tocapital ihe country of concentrated energy and or second in defiance of the enterprise 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 evitable criminal prosecution of the individuals named In the decree and their associates or “Third they must reorganize and accept in good faith the federal charter I suggestas a federal compulsory license law a substitute for a federal incourged rporation law Is except to reach that kind ofunnecessary which by corporation virtue of the considerations advanced will take advantage already voluntarily of an Incorporation law while the other state corporations an interstate doing business do not need the or the regulation of federal supervision license and would only be unnecessarily burdened thereby Loomis talk upon the paid board and we handed her money JUST subjects of servants and over as wages to her successors Servants are queer any way you murders One naturally leads to the look at them but this everlasting other And at the start I Want to say that talking about them when we are surI totally disapprove of servants as a rounded by art and literature and the The trials good deeds of philanthropists makes subject of conversation of housekeepers should be a tabooed mewonder what we are coming to men are almost as bad topic And I will say the Bame of I think that A man is as women in this matter murder trials to be interested in our For myself 1 make It a point never just as likely as a woof the to read about murders I can get all case Is and I never go out anywhere I want from the headlines To be man some are there preswhere strangers there sure are exceptions to every I am asked to tell about her rule there was Robin Graves who ent but’ starts the servant on a and that always murdered his thid I am generally asked question dare from his fellow medical students floor because we have had I didn’t read anything about it but I to take the such queer experiences heard people discussing It andlt had I have time for only one njore anecelements of Interest in it And I alI must tell that Summer becase dote but ways thought that Probyn-Clelast mother got a treasure of a far from dull You may remember fore She could cook she was recook that Probyn sent Clew a poisoned carand respectable she didn’t amel on the very day that Clew sent spectful” break and she was honest but — and Probyn a poisoned peppermint Well her "but” was that she would the papers were full of It I gathered Now we not go to the mountains enough to enable me to hold my end take a furnished house in the mounup when I encountered a person with tains every summer but we can’t get bad enough taste to discuss the suba servant up there and Nadjezda jest It was deplorable the way (she’s a Pole) could not he induced people harped on that case to go So we went without her and Then take the affair of the landshe lived In our city house on half lady who murdered all her boarders wages all summer long and cooked because they resented a raise In thA for herself while mother went td the price of board What a mine of wealth mountains and cooked for herself that was to the reporters! My paper Still it was a sort of comfort to think had six columns a day for 20 days and somewhere we had a capable I just had to read that because there that cook cooking was nothing else but politics' in the I wish that some of the sometimes paper but I felt that It was no subIncapable ones could be cooking someject for a person of any refinement where Yet I knew one man who makes quite a pretense of being up In the English were thinking yesterday my classics and he knew every point In YOU woman' that you were a the trial I could not trip him up on little better than the lady who called a single bit of evidence That experi- on you although she has more money ence just about destroyed my faith in than you humanity My brother said that I ’But are you really better than she? talked of nothing else but' that trial Your husbant is a salaried man and and he was quite right I was comher husband Is an oil magnate pletely absorbed in trying to find Of course that does not necessarily of some person who knew nothing it make her any better than you beAnd at last I did find an old lady who cause we all know that your husband never reads the papery She had not had a college education and her huseven heard about It She wanted to band was a day laborer discuss one of Fiske’s books on evoluBut why should your husband’s edtion but I said "See here Mrs ucation or her husband’s wealth have a rara the You’re avis you’re anything to do do with you or her? first person I’ve met who has- - not Let us cut the husbands out of the ' heard about this unique series of murrr5 question ders and I’m just going to tell you Well then she has more “ money the whole story so that you may see than you for yourself what It is that fills Does that make you any better than minds in these degenerate' she? Is the lack of money an unpeople’s days’’ And so I told her the whole mixed blessing carrying with it sostory and she listened breathless this cial superiority? cultivated woman was positively as She (with a certain touch of vulinterested as if she had been a policeowing to her ancestors which man off (or on) duty and discussing garityhave not thanks to your ancesyou Oh I was tors) has a much kinder heart than' shop with a brother officer sickened you have “After a while she wanted to shift She honestly tries to be herself In off to evolution so that she wouldn’t spite of the money she has while you dream of the horrible murders but I have social ambitions that cause you looked at my watch and saw that I to be snobbish had a train to catch and again Fiske You think you are betteit than she was Fiske with his luShe never thinks about’ social stacidity and logic and sweet reasonable- tus ness was for a horrible You feel bitter toward her because murder her husband Is Immensely wealthy Just as I was coming away I asked She feels well disposed toward you If she rememmy hostess casually because she thinks both you and your bered the Bond street murder and she husband are clever — and with her for did remember that her father clever has a better meaning than the lived on the very same block at the commonly accepted one I actually time It was committed No In spite of her money and her I sat down position she Is more of a woman than missed my train because to hear her talk about it It was like you are in spite of your blood and I was not a bit out of Ainsworth your husband’s education born when it happened and she was is $4 I! O YOU want toj know why the but a girl but her father had the bad maid left after the third hot habit of discussing such things in the I mistaken be but If you of children it had and may his night? presence made such an impression upon her will take me up to the room she ocinfant mind that here she was retail- cupied I may be able to find a clew ing it to me As a bit of local history and there Is certainly nothing about contemporaneous with the days of Ir- me that resembles Sherlock Holmes What a large closet! It had a certain ving and Cooper the maid’s value and that is what appealed to No? Not a closet? room? me But to return to servants There is Oh la la! (As they say In absolutely no excuse for talking about France) Do you remember the black hole the Bridgets and Christinas and Maof Calcutta? ries and Dinahs that come and go Mind you I am not Poor maid! there are circumstance that alter ’And what an apology for a window cases If there is a servant who ex- And how hot the tin roof makes the cites your Interest in humanity it is room even this cool day allowable to talk about her Now we Wasn’t It awful the way some had a maid for a couple of days last people treated slaves? week who had evidently seen better Makes me simply shudder to read days and many of them The way she the accounts broke crockery showed that she did So your maid stayed through the not do it with malice prepense nor third hot night? yet out of sheer carelessness as an Courageous girl! I would have left after the first ordinary maid would have done She had evidently been used to being wait- night’s experience ed upon and had no manual dexterity It was hot on your own floor with’ whatever In fact she told me that all the windows open and a direct she had never lived out before Her draft over the bed name was Marie Brannigan But think of that room We had one girl who refused to go “Elizabeth or the Exiles of Sibewhen her day was up She was abso-- ' ria!” lutely worthless as a cook but she Only they were cold liked her room and she wanted to And both you and your husband board with us My mother wanted pillars of the church me to eject her forcibly but I am not You might Install an electric fan a bouncer — and she was Anyway I That would help felt It was a sort of compliment to our ! Three nights In a that to she wanted bouse stay and so Pfew! we allowed her to keep the room She (Copyright by James Pott & Co) a |
