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Show PRESIDENT WILSON READS NEW TRUST PROGRAM TP CONGRESS Plan for Dealing With "Big Business" Outlined Private Monopoly Indefensible and Intolerable Conscientious Business Men Should Not Be Satisfied With Methods Deprecated by Public Opinion New Peace Articles. PERSONAL APPEAL FOR FRIENDLINESS Antagonism Between Business and Government Over Prohibition Pro-hibition of Interlocking Directorates Additional Power for Interstate Commerce Commission Sherman Law Supplement Creation of New Business Bureau. Washington, Jan. 20. President Wilson left the White House at 12 10 o'clock to deliver his message on trust legislation to a joint session of congress Both the house and senate met at noon and recessed while the senators, two hy two, filed oer to the hall of the house for the president's address about 12:30 o'clock. House galleries were packed. Mrs. WilBon and others of the president's family occupied places while the diplomatic dip-lomatic corps was well represented and the floor was crowded with various var-ious government officials. A joint committee met the president in Speaker Clark's office to conduct hlra to the rostrum The president arrived at the capl-tol capl-tol at 12:25 o'clock. Both houses were assembled and waiting for his appearance. The president was ushered into the crowded chamber at 12:29 o'clock while the audience rose and gave him prolonged applause and cheers. The president took his place at the clerk's desk and began reading promptly at 12:30 o'clock. His auditors audi-tors gave rapt attention. Colorful Dramatic Scene. The scene was a colorful one and no less dramatic than on any of the previous occasions when the president, presi-dent, setting aside precedent that prevailed pre-vailed since CJeorge Washington's time, came to the halls of congress to address the national legislative body in person The high banked galleries presented a wave of color On the floor the legislators in sombre conventional garb, packed the hall to its utmost corners. Secretaries Garrison, Gar-rison, Daniels and Wilson and Postmaster Post-master General Burleson "bad seats on the floor, and the other officials were clustered about the speaker's dais. Hundreds of people straining for a glimpse of the president and unable un-able to obtain admission, packed the halls of the capital The round of applause that begun when the president entered was only stilled by Mr. Wilson's evident desire to proceed with his reading, and as he began in a clear voice which carried car-ried throughout the chamber, one might almost have heard a pin drop. Interrupted by Applause. As the president read his message of "Business Peace and Industrial Freedom" as the administration supporters sup-porters called it, he was frequently interrupted with long applause, and at limes, demonstrations approaching cheering. His reference to Interlocking Interlock-ing dlrectorations was received without with-out demonstration but when be referred refer-red to the proposal to authorize the Interstate Commerce commission to regulate the financial operations of the railroads, a burst of applause halted the reading and the president had to wait for it to subside His declarations that the laws "should tear nothing up by the roots." and that no sweeping or novel change is necessary, were received with attentive atten-tive silence. Republican Leadef James R Mann led the applause thai greeted the declaration for giving thl Interstate Commerce commission power to regulate railroad finances Another round of applause greeted the statement as to the railroad cos Irol with its declaration "that the business of production must be sep arated from the business of transportation." transpor-tation." The declaration for an interstate trade commission was recedved in silence, and applause greeted the ntatement that "penalties and punishment punish-ment should fall not on business itself it-self but on the Individuals who use the Instrumentalities of business to those things which public policy and sound business practice condemn." Loud applause greeted the conclusion conclu-sion of the president's addreos at 12:51 o'clock. Washington. Jan. 20 President Wilson personally laid before a joint session of congress today the fundamental funda-mental principles of the Democratic administration program for dealing with trusts and "big business." The president presented the case, he said, 'as it lies in the thought of the coun-try" coun-try" reiterating that private monopoly monop-oly is Indefensible and intolerable." and declaring that conscientious business busi-ness men throughout the nation would not be satisfied until practices now deprecated by public opinion as restraints re-straints of trade and commerce were corrected, 'We are now about to write the additional articles of our constitution constitu-tion of peace," said the president, "'he peace that is honor and freedom free-dom and prosperity." Besides suggesting sug-gesting the scope of legislation the president made a personal appeal for an atmosphere of friendliness and cooperation co-operation in congress while handling the problem "The antagonism," he said, "between "be-tween business and covernnient is over We are now about to give expression ex-pression to the best judgment of Am erica, to what we know to be the business bus-iness conscience and honor of the land. The government and business H'en are ready to meet each other half-way in a common effort to square business methods with both Public opinion and the law " l The chief points which the president presi-dent singled out as a basis for legislation leg-islation were: 1. Effectual prohibition of the interlocking in-terlocking of directorates of great corporations banks, railroads industrial, indus-trial, commercial and public service bodies. 2. A law to confer upon the interstate in-terstate commerce commission the power to superintend and to regulate the financial operations lv which railroads rail-roads are henceforth to be supplied with the money they need for their proper development and improved transportations facilities. The president presi-dent made it clear that "the prosperity prosper-ity of the railroads and the prosperity prosper-ity of the country are Inseparably connected" in this regard 3. Definition of the many hurtful restraints of trade by explicit legislation legis-lation supplementary to the Sherman law. 4. The creation of a commission to aid the courts and to act as a clearing house of information In helping help-ing business to conform with the law. 5. Provision of penalties and punishments pun-ishments to fall on individuals responsible re-sponsible for unlawful business practices. prac-tices. 6. Prohibition of holding companies com-panies and a suggestion that the voting vot-ing power of individuals holding shares In numerous corporations micht be restrained. 7. Giving to private individuals the right to found suits for redress on facts and Judgments proven in government gov-ernment suits and providing that statute of limitations should run only I from the date of conclusion of the government s action. The president spoke as follows: "Gentlemen of the Congress: In my report 'On the state of the Union' which I had the privilege of leading to you on the second of December last, I ventured to reserve for discussion discus-sion at a later date the subject of additional legislation regarding the very difficult and Intricate matter of trusts and monopolies. The time now seems opportune to turn to that great question not only because the currency legislation which absorbed your attention and the attention of the country In December, is now disposed dis-posed of, but also because opinion seeems to be clearing about us with singular rapidity in this other great field of action. In the matter of the currency it cleared suddenly and very happily, after the much debated act was passed. In respect to the mono polies which have multiplied about us and in regard to the various means by which they have been organized and maintained. It seems to be com' lng to a clear and all but universal agreement In anticipation of our action, ac-tion, as if. by way of preparation, making the v. ay easier to see and easier to set out on with confidence and without confusion of counsel. Legislative Atmosphere Clears, "Legislation has its atmosphere like everything else and the atmosphere of accommodation and mutual understanding under-standing which we now breathe with so much refreshment is a matter of sincere congratulation. It ought to make our task very much less difficult diffi-cult and embarrassing than it would have been had we been obliged to continue to act amidst the atmosphere atmos-phere of suspicion and antagonism which has so long made it impossible to approach such questions with dispassionate dis-passionate fairness. Constructive legislation, when successful, is always al-ways the embodiment of convincing experience and of the mature public opinion which finally springs out of that experience. Legislation is a business ot interpretation, not of organization, or-ganization, and It is now plain what the opinion is to which we must give effect in this matter. It is not recent or hasty opinion. It springs out of the experience of a whole generation. It has clarified Itself by long contest and those who for a long time battled with it and sought to change it are now frankly and honorably yielding to It and seeking to conform their actions to it. Business Attitude Changes. "The great business men who organized or-ganized and financed monopoly and those who administered it In actual every day transactions have, year after aft-er year, until now, either denied its existence or justified It as necessary for the effective maintenance and development de-velopment of the vast business proces sos of th country In modem circumstances circum-stances of trade and manufacure and finance; but all the whole opinion has made head against them. The average business man is convinced that the ways of liberty are also the ways of peace nd the ways of success suc-cess as well, and at last the masters of business on the great scale have begun to yield their prSrence and purpose, perhaps their judgment also. al-so. In honorable surrender. "What we are purposing to do. therefore, is: happily, not to hamper or luterfere with business as enlightened enlight-ened business men prefer to do it, or in any sense to put it under the ban The antagonism between business and government is over. We are now about to give expression to the best business judgment of America, o what we know to be the business conscience and honor of the law. Ready to Square Things. The government and business men are ready to meet each other halfway half-way in a common effort to square business methods with both public opinion and the law. The best in-formed in-formed men of the business world condemn the methods and processes and consequences Of monopoly as we condemn them; and the Instinctive judgment of the vast majority of business men everywhere goes with them. We shall now be their spokes 1 men. That is the strength of our j position and the sure prophecy of , what will ensue when our reasonable I work is done. "When serious contest ends, when I men unite in opinion and puipose j those who are to change their ways of business joining with those who ' ask for the change, it is possible to : effect it in the way in which prudent , and thoughtful and patriotic men ; would wish to see It brought about. I with as few, as slight, as easy and I simple business readjustments as j possible in the circumstances, noth- ing essential disturbed, nothing torn up by the roots, no parts rent asund-! asund-! er, which can be left in wholesome i combination. Fortunately, no meas- ures of sweeping or novel change are necessary. It will be understood that our object is not to unsettle business or anywhere seriously to break Its established courses athwart. On the contrary, we desire the laws we are now about to pass to be the bulwarks and safeguards of industry against the forces that have disturbed it What we have to do can be done in a new spirit, in thoughtful moderation, without revolution of any untoward kind. Private Monopoly Indefensible. "We are all agreed that 'private monopoly is indefensible and Intoler able' and our program is founded on that conviction. It will be a comparative com-parative but not a radical or unacceptable unac-ceptable program and these are its Items, the changes which opinion deliberately de-liberately sanctions and for which business waits: "It awaits with acquiescence, in the first place, for laws which will effectually effect-ually prohibit and prevent such inter-lockings inter-lockings of the personnel of the directorates direc-torates of great corporations banks and railroads, Industrial, commercial j and public service bodies as in effect ef-fect result in making those who borrow bor-row and those who land practically one and the same, those who sell and those who buy the same persons' trade with one another under different differ-ent names and in different combinations, combina-tions, and those who affect to compete com-pete in fact partners and masters of some whole field of business. Sufficient Suffi-cient timo should be allowed of course, in which to effect these changes of organizations, without In-l In-l convenience or confusion. "Such a prohibition will work much more than a mere negative good by correcting the serious evils which have arisen because, for example, the men who have been the directing spirits spir-its of the great investment banks have usurped the place which belongs to independent, industrial manage ment working In its own behalf. It will bring new men, new energies, a new spirit of initiative, new blood into the management of our great business enterprises. It will open the field of industrial development and origination to scores of men who have been obliged to serve when their abilities entitled them to direct It will immensely hearten the young men coming on and will greatly enrich en-rich the business activities of the whole country All eRcognize Former Injustices. "In the second place, business men as vvell as those who direct public affairs af-fairs now recognize, and recognize with painful clearness, the great harm and injustice which has been done to many, if not all, of the great railroad rail-road systems of the country by the way in which they have financed and their own distinctive interests subor dinated to the interests of the mej who financed them and of other business busi-ness enterprises which those men wished to promote. The country is ready, therefore, to accept, and accept ac-cept with relief, as well as approval, a law which will confer on the interstate in-terstate commerce commission the power to superintend and regulate the financial operations by which the railroads rail-roads are henceforth to be supplied with the money they need for theli proper development to meet the rapidly rap-idly growing requirements of the country for increased and improved facilities of transportation. We cannot can-not postpone action in this matter without leaving the railroads exposed to many serious handicaps and hazards, haz-ards, and the prosperity of the railroads rail-roads and the prosperity of the country coun-try are inseparably connected Upon this question those who are chiefly responsible for the actual management manage-ment and operation of the railroads have spoken very plainly and very earnestly, with a purjnjse we ought to be quick to accept. It will be one Step, and a very Important one, toward to-ward the separation of business ol transportation from the business of production. "The business of the country awaits also, has long awaited and has suffered suf-fered because It could not obtain further fur-ther and more explicit legislative definition defi-nition of the policy and meaning of the existing antitrust law. Noth lng hampers business like uncertainty uncertain-ty Nothing daunts or discourages It like the necessity to take chances, to run the risk of falling under the condemnation con-demnation oi the law before it can make sure just what the law Is. Surely Sure-ly we are sufficiently familiar with the actual processes and methods of monopoly and of the many hurtful restraints re-straints of trade to make definition possible, at any rate up to the limits of what experience has disclosed. These practices, being now abundantly abundant-ly disclosed, can be explicitly, and item by item, forbidden by statute in such terms as will practically eliminate elimi-nate uncertainty, the law Itself and the penalty being made equally plain More Than Legal Procea Needed. "And the business men of the coun try desire something more than that the menace of legal process in the matters be made explicit and iutelli- gible. They desire1 the advice, the definite guidance and information which can be supplied by an adminis trative body, an interstate trade com mission. "The opinion of the country would instantly approve nsuch a commis ?ion. It would not wish to see H empowered to make terms with mono poly or in any sort to assume conlro of business, as if the gtvernmcn made itself responsible. "It demands such a commission only las an indispensable instrument of information in-formation and publicity as a clearing house for the facxs by which both the public mind and the managers oi great business undertakings should be guided and as an Instrumentality for doing justice to business wheit the processes oi the courts or the natural nat-ural forces of correction outride the courts are Inadequate to ajust ttn. remedy to the wrong in a way that will meet all the equities aud circumstances circum-stances of the case Producing Industries. "Producing industries, for example, which have passed the point bp to which combination may be consistent with the public interest and the freedom free-dom of trade cannot always be dis sected into their component units as readily as railroad companies or similar sim-ilar organizations can be Their dissolution dis-solution by ordinary legal process may often times involve financial con sequences likely to overwhelm the security market and bring on its breakdown aud confusion There ought to be an administrative commission commis-sion capable of directing and shaping such corrective processes, not only in aid of the courts but also by lnde pendent suggestion, if necessary "Inasmuch as our object and the spirit of our action in these matters is to meet business half way in its processes of self-correction and disturb dis-turb its legitimate course as little as possible, we sought to see to it. and the judgment of practical and saga cious men of affairs everywhere would applaud us if we did see to it, that penalties and punishments should fall, not on business itself, to its confu sion and interruption, but on the in dlviduals who use the instrumentalities instrumentali-ties of business to do things which public policy and sound business prac tice condemn. Every act of business is done at the command or on the initiative ol some ascertainable person ot group of persons. These should be held individually responsible and the punishment should fall on them. not on the business organization ot which they made illegal use It should l.e une of the main objects of our legislation to divest such persons of their (orKirute cloak and deal with them as with those who do not represent repre-sent their corporations, hut merely by deliberate intention break the law The business men the country througn would, I am sure, applaud us ;f we were to take effectual steps to see that the officers and directors of great business bodies were prevented from bringing fhern and the businebj of the country into disrepute and danger. dan-ger. Enterprises Interlocked. "Other questions remain which will need very thoughtful nnd practical treatment Enterprises. in these modern days of great individual fortunes, for-tunes, are oftentimes interlocked, not by being under the control of the same directors, but owned by a single person or group of persons who are in some way Intimately related in Interest. In-terest. We are agreed, I take It, that holding companies should bo prohibited, pro-hibited, but what of the controlling private ownership of individuals or actually co-operative groups of individuals? indi-viduals? Shall the private owners ot capital stock be suffered to be thom- tContlnued on Pnce Six.) PRESIDENT WILSON READS RIEW TRUST PROGRAM (Continued Frm Page Odo.i selves in effort holding company ? W4 don't wish. 1 suppose, to forbid the purchase of stocks b the holding companies? We don't wish, I suppose, to forbid the purchase of sto ks by any person who pleases to bu them in such quantities as he can afford, or in an) waj arbitrarily to limit the sale oi stocks to bonafide purchaser? Shall we require the owners of stock when their voting power in several companies which ought to be independent inde-pendent of one another would constitute con-stitute actual control, to make election elec-tion in which of them they will ezer cise their ncht to vote0 This question I venture for your consideration Justice and Fair Play. "There is another matter In which imperative consideration of justice and fair play suggest thoughtful remedial rem-edial action. Not only do many of the combinations perfected or sought to be perfected In the industrial world work an injustice on the public in general; they also directly and acrl ously injure the individuals who are put out of business in one unfair iy or another by the many dislodging and exterminating forces of combination. combina-tion. 1 hope that we shall agree In civing private individuals who claim to have been injured by these processes pro-cesses the right to found their suits for redress on the facts and judgments judg-ments proved and entered in suits b the government where the govern ment has, nn its own initiative, sued the combinations complaintd of and won its suit and that the statute of limitations shall be suffered to run against such litigants only on the date ol the conclusion of the government's anion. It is not fair that the private litigant should be obliged to set up and establish again the facts which the government has proved. He cannot can-not afford, he has not the power to make use of such processes of inquiry as the government has command oi. Thus shall Individual justice be done while the processes of business are rectified and squared with the general conscience Plain Obligations. "I have laid the case before you. no doubt, as it lies ,ln your mind, as it lies in the thought of the country. What must every candid man say of the suggestions I have laid before you. of the plain obligations of which 1 ! have reminded you? That these are new things for which the country is1 not prepared? No, but that they are j old things, now familiar, and must oi course be undertaken if we are to square our laws with the thought and desire of the country. Until these things are done, i onscientious busi 1 nesK men the country over will be un satisfied. They are in these things our mentors and colleagues. We are now about to write the additional ar-1 ticies of our constitution of peace, th peace that is honor and freedom and prosperity." nn |
