Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1899-12-23
BLOW STRUCK The TRUSTS
US. Supreme Court Decides Against
Combinations.
Have No Legal Right 10 Manipulate iOr Inter
ference Of Trade = Local State COmbna
tons Not Touched Upon.

Washington, Dec. Ain the United
States Supreme Court today the Addy-
stone pipe case was decided. This case
involved the constitutionality of the
combination of pipe manufacturers
which, it was charged, was trust.
The decision was handed down by
Judge Peckham, and was adverse to
the combination. 1t WAS therefore In
opposition TO the trust. The opinion OF
the Court OF Appeals for the sixth cir
cult was affirmed.
In reviewing the case, Justice Peck
heY said that 1t had been brought I'M
der the antitrust act OF 1890, and that
an injunction was asked for to enjoin
the corporations engaged in the man
ufacture of water and Eas pipe which
composed the combination from con-
tinuing business under the agreement
by which they had divided the terri
tory OF the United States among
themselves, and by which they had ar
ranged to fix prices.
Under this agreement the members
Of the combination provided for auc-
tloning Off the right to make bids for
supplying with pipe cities not allotted
territory, the successful bidder to
meet no opposition from other men,
bers Of the trust; or, II other bids were
made, none of them should be higher
than that of the company to which the
award had been made by the combina-
ton. In cases in which bids were ASK
ed for in territory allotted to members
of the territory, the agreement was
that no bids should be made except un-
der the supervision of the company in
charge Of that territory under the
agreement.
The charge was that such q combi-
nation was violation OF the clause of
the constitution regulating interstate
commerce. The District Court in
which the case was first heard refused
to take this view of H., but Il was re-
versed by the Court OF Appeals of the
Sixth Circuit, which held the combi-
nation to be antagonistic to the con-
stitution, ordering the issuance of the
injunction prayed for. This latter de-
cision was affirmed by the action of to-
day of the Supreme Court, with
modification that the decision should
be construed as applying to interstate
business only
Remarking upon the general aspect
OF the decision, Justice Peckham said:
We have no doubt that where the d.
rect and immediate effect of contract
or combination among particular deal
ers In commodity is to destroy COM
petition between them and others, the
parties to the contract or combina-
ton may obtain increased prices for
themselves, such contract or combina-
ton amounts to a restraint OF trade
In the commodity, even though con-
tracts to buy such commodity at the
enhanced price are continually being
made. Total suppression of the trade
in the commodity Is not necessary In
order to render the combination one
of restraint of trade. 1t Is the object
of the combination In limiting and re-
stricting the right of each of the men,
bers to transact business in the or
binary way, as well as Its effects upon
the volume or extent Of the dealing In
the commodity, that Ia regarded.
The opinion then adds:
II Is almost needless to add that we
do not hold that every private enter
prise which may be carried on chiefly
or In part by means of interstate
shipments is going to be regarded
as related to Interstate COM
merce so as to come within the regu.
lating power Of Congress. Such enter
prises may be Of the same nature MS
the manufacturing Of refined sugar;
that Is, the parties may be engaged us
manufacturers Of commodity which
they thereafter intend at some time
to sell and possibly do sell in another
State; but such sale as We have al
ready held is an incident to and not {
direct result of the manufacture. unt
so is not a regulation OF or an lllega
interference with Interstate com
merce. The principle ia not affected
by anything herein decided.
The decision draws clear distinc
ton between combinations affecting
interstate commerce ind those apply
ing to one State only. The opinion at
tracted very great attention because
Is the first opinion on the subject o
trusts which has been handed dow
since the subject of trusts has com,
into great prominence.
All kinds of carriage painting by up