New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-02

NEW-YOR
themselves. They find it also necessary 10 ad-
vance the price Of other articles.
This will be recognized as a statement oil ordi-
nary transactions such as take place every day IN
/ business. 1t will be readily admitted that II
| such transactions are rendered criminal no busl-
ness can be carried Traders Will close their
shops or crowd the penitentiaries A reference
4 70 the catalogue Of crimes above enumerated Will
! show that the parties to such transaction nave
| filled full the sum of all the specified Viilancs'
They have entered into a combination, confedera-
| ton or trust. They have thereby lessened ana
possibly DESTROYED competition within the sphere
of their business. They have advanced the price
of commodities They have done acts intended
and tending to force competitor out of business
They have agreed TO fix, limit and diminish the
production of an article in which they deal They
have agreed to fix. increase and also to diminish
prices They have, by combinations of persons
1 and capital, affected prices and production. Pos
sibly, also, by combination of skill they have
been able to reduce prices which is a henous
crime by the law Of Texas, and is proposed by
/ the Senator from Texas to be made crime by
Federal law
There is not business man. matter how
honorable, who has not again and again offended
against the whole law, Can men bargain with
out liking, limiting, increasing and Producing
prices? Can individuals associate in business
without power TO fix, limit, increase and reduce
as business eXigencies demand, the amount OF
/ their output? Can persons associate and CO.
operate without lessening competition? Can per
sons compete successfully without endeavornG
to draw business to themselves. and is not the
tendency of all successful competition TO force
the weaker competitors TO the wall Business
! will be individualized with a vengeance when
| freedom of contract is destroyed to the extent
these proposed and enacted laws demand. 1t
| will be relegated TO the original and aboriginal
plan.
THE RULE OF COMMON LAW.
| It is often stated that agreements in restraint
of trade or tending to prevent competition, or
fixing prices, contrary to common law. IL
must be apparent that if this statement is true
| business can only be carried contrary to law.
| The truth is that some such agreements are con-
trary to law. When all such agreements are
made illegal the law will become dead letter or
business will stop. The common law permits
party to purchase the business of another for
the very purpose of preventing competition. Co.
operation, though it prevents the rivalry Of the
parties cooperating, is not forbidden. Persons
may associate in business for the purpose of sell
ing at lower prices although the inevitable effect
will be TO ruin others already in the business and
so far from being criminal, il is pronounced by
our highest courts to be meritorious and public
| spirited Persons may form partnerships and fix
and regulate their prices, and raise them and
| lower them, and agree that they will sell this
and will not sell that and fix and limit the amount
| they will manufacture, produce, buy and sell.
hnd they may push their business by all lawful
/ o1tlo -, tlo
crowded out in consequence, and court within
the last century has dreamed of pronouncing
such partnerships or such business contrary TO
public policy.
The proposal and enactment of laws of this
character in order to prevent trusts brings out
in strong light fact which / wish TO emphasize,
and TO which all / have said is preliminary
namely, that trust is an association for business
purposes. and laws to prevent trusts are neces-
sary laws to prevent association or cooperation
in business.
The real question in regard to trusts is not
whether the purpose of this trust is good and of
that one bad. but whether association for business
purposes is injurious to the public, and to what
extent, if at all, the right of association should
be limited.
prefer to discuss this question in the light of
experience rather than to spin fine theories.
ness, regardless of form magnitude, were
deemed nuisances and conspiracies Laws were
enacted making it criminal for five per-
sons to associate. either by covenant or partner
ship. for dealing in Goals or other commodities.
Joint stock associations were denounced as crimes.
Laws passed which recited that Opening
books for public subscription and drawing persons
TO subscribe was dangerous and mischievous;"
that the combining of persons and capital and
the issuing of transferable stock was a public
nuisance" and the offenders were subjected to
forfeiture of all goods and lands. and TO i'm
prisonnient for life The objections to assoca-
tons then the same reiterated with 50 much
force to-day These laws were based upon the
reason that "the clubbing together of numbers
of persons for the purpose of carrying on trade
is calculated to put down individual industry
and competition, and thereby to increase prices.
So great was the fear of this influence on prices
that it was criminal for wOrkingmen to combine
TO obtain an increase Of wages. Prices of pro-
visions might rise, the coin might be debased
but workingmen could not unite to ask for
corresponding increase for their work under fear
of punishment Ordinary and essential business
| transactions were made criminal by law because
supposed TO increase prices. man might not
buy goods on the way to market, or buy TO sell
again in the same market, or buy in large quanti-
ties. ANY person who made any motion by
word, letter, message or otherwise to any person
for the enhancing of the prices of goods was
guilty of crime One man was convicted for
expressing the opinion that the hop crop was
exhausted and prices would rise. and another Tor
| purchasing $50 bushels of oats and selling them
at profit of six cents bushel. These practices
it is said. had tendency to deprive the poor of
the necessities of life and blinked upon murder"
None of these laws interfered with freedom of
contract to so great an extent as the antitrust
! laws above referred to. They made combination
criminal it is true. as well all acts tending to
! increase prices. but persons might still fix and