The San Francisco call., 1896-02-14
TRUSTS AND COMBINES,
Attorney.General Harmon Sends
a Reply to a Resolution of
the Senate.
The Law-Making Powers of Congress
and Cf the States De-
fined.

WASHINGTON, D. c., Feb. 13.-Attor
ney-Genera1 Harmon sent to the House
to-day reply to resolution of that body
in regard to the enforcement of the laws
against trusts, combines, etc.
Replying to the first part of the inquiry
Attorney General Harmon says that many
complaints have been made against alleged
trusts, com bines and monopolies, which
in so far as they relate 10 matters within
the jurisdiction of the Federal Govern
ment, he has endeavored to Investigate.
In reply to the question as to what leg.
islation is needed to protect the people, he
says this is a question of general policy
and not one of law, which, therefore. does
not pertain to his department, Assuming
however, that Congress desires him to
point out such defects in the present law
as experience has shown, he submits the
following suggestions:
'The act of July, 1890, known as the
Sherman antitrust law, as construed by
the Supreme Court, does not apply to the
most complete monopolies acquired by
the unlawful combination of concerns
which are naturally competitive; though
they, in fact, control the markets of the
entire country, if engaging in interstate
commerce, this is merely an incident oil
their business and not its direct and i'm
mediate object. The virtual effect of this
is to exclude from the operation of the law
manufacturers and producers of every
class and probably importers also.
"As a matter of fact, no ATTEMPT to
secure monopoly or restrain trade and
commerce could possibly succeed without
extending itself largely, if not entirely
over the country. So that while engaging
in interstate commerce may not be the
direct or immediate object, it is a neces.
sary step in all such undertakings. While
Congress has no authority in the N after
except what is derived from its power to
regulate commerce, the States alone
having general power to prevent and
punish such commercial com binations OF
conspiracies-Congress may make it un-
lawful to ship from one State to another
in carrying out or attempting to carry out
the designs of such organization articles
produced, owned or controlled by them OF
any of their members or agents.
1.-THE limitation of the present law
enables those engaged in such attempts to
escape from both State and Federal Gov.
ernment-the former having no authority
over the interstate commerce, and the lat
ter having authority over nothing else.
By supplementing State action in the way
suggested Congress can accomplish the
proposed object of the present law
Attorney-General Harmon refers to the
rulings of the courts, the result of which
has been in great doubt and uncertainty,
and the failure of the law to accomplish
its purpose, and says that the law should
be amended so as to leave no doubt about
what is meant by "monopolies, by at
tempting to monopolize, and by contracts
combinations and conspiracies in restraint
OF trade and commerce.
1t should not, he says, be difficult to
distinguish legitimate business enterprises
of associations or bona-fide partnerships.
The present law should be amended so as
to prevent the refusal of witnesses to
answer on the ground of self-incrimina-
ton, this defect having been severely felt
in all attempts to enforce the law. He
also suggests the propriety of making the
penalties of the law applicable only to
general officers, managers or agents, and
not to subordinates.