The sun., 1897-03-28
Judge Peckham's Political Economy

The opinion read by Judge PECKHAM, In
delivering the judgment of the United
States Supreme Court against the Trans
Missouri Freight Association, under the
Antitrust act of 500, embodies some re-
markable views, not only upon the point of
law involved, but upon one of political
economy. The restraint Of trade among
the States or with foreign nations, which
the act makes illegal, is held by the court
to include as well n restraint which bene.
fits the community by reducing freights
and fares as one which Injuries it by in
creasing them. Judge PECKHAM comedies
that this is stretching beyond its original
application the old common law doctrine
that contracts In restraint Of tlade are un-
lawful when they tend to make the public
pay higher prices for commodities or ser.
vices than 1t otherwise would, and he rests
his opinion upon the unqualified language
of the act, which forbids all agreements in
restraint Of trade, whether they be bene-
ficial or injurious.
This construction of statutory language
involves question of law, the reArgument
of which Is much to be desired, with the
view Of obtaining n reversal of the present
decision of 1t. Until such reversal IL
made, however, tho decision must be
obeyed. Beyond this, however, Judge
PEcKHAM takes the opportunity to pro.
mulgate. upon a point of political economy,
views which are surprising. not to say
astonishing.
After declaring, as has already been men
toned, that an agreement In restraint of
trade is unlawful under the Antitrust act,
Notwithstanding it may reduce freights and
fares, the Judge goes on to condemn indus
trial combinations or trusts of every kind, as
contrary to public policy, even though they
permanently reduce the prices of the com.
modities or of the services affected by them.
Tho reason he gives is that such combina-
tions deprive of occupation little traders and
manufacturers, and turn them adrift to
seek other employment. Hence they are
restraints OF trade, which, in principle,
come within the scope of the Trust act,
like agreements between railroad compa-
mics to fix rates.
-is 70 truo the results of trusts combinations OF
that nature. may be different In different OF
poratlons aud yet they all have similar
ity and have been induced by motives OF individual
or corporate aggrandiEement against the public
Interest In business or trading combinations they
may even temporarily or perhaps permanently.
reduce the price Of the article traded manuao
fursd ov reducing the expense iAsearubls from the
running or many dl6srsHt companies FOR the same
purpose. Trade commerce under those circum.
STANCES may nevertheless DO badly and unfortunately
restrained by driving out OF business the small eae
and worthy men whose lives have been spent therein
and who might be unable to resdJust themselves TO
their altered surroundings. Mere reduction IN tho
price @ The commodity dealt IN insight be dearly paid
Jor oy the ruin o such class and the Of
control orsr one commodity BY all potrsr,al eoMb
Hatfon Of capital"
And little further on, the Judge says:
IN thfS light 70 not that the prios Of a
article may be lowered His In tho power OF the com
eaop Y raise it. and the result any eveut is un
'or'aAAis fsE the country by dSprtUlAe "a ef tAs ssy