The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-08-22
A Novel Remedy for Trusts.

To the vOluninous but yet active dis
cussion Of tha trust problem there has
been contributed by writer in the Chi
caGo Record an article possessing in
terest above the ordinary. He puts the
whole problem into one short para
graph by saying: $50 long as the con-
sumner is able to buy at equitable prices
he does not care whether commodity
is produced by 1000 Independent firms
or individuals or by one vast corpora
tion with 1000 stockholders. He wants
his moneys worth no more and no
less; and it is no concern of his to in
quire how or by whom an article is
made. But when substantially all the
factories in an industry are gathered
under the control Of one board of di-
rectors with power vested in them to
raise prices at their pleasure, the peo-
pie have the right to inquire into the
character Of the vendor and to protect
themselves against eXtortion."
State regulation of trusts he regards
as uncertain and unreliable. Texas,
for example, may prohibit a New Jer-
sey corporation from doing business
within the state of Texas, but is pow
erinss to prevent citizen of Texas
from going to New Jersey 10 buy all
he wants of the products of the trusts
for distribution in Texas; nor can the
state prevent the trusts from sending
travellers through its territory to sell
their products under tlN protection of
the interstate commerce clause of the
federal constitution. This same clause
prevents any state from interfering
with its own citizens who desire to sell
out to a citizen or corporation Of an
other state. Nor can any state prevent
a foreign corporation from collecting
for goods sold. because the federal con-
stitution expressly says, NO state
shall pass any law imparng the obli-
cation of contracts
Legislation by congress along the
lines Of the sherman antitrust law is,
ho claims. necessarily ineffective.
Congress has no jurisdiction to regu-
late manufacturing industries, that
power having been reserved by the
states. In the famous sugar trust case,
in which the attorney general sought
To restrain the American Sugar Re-
lining company from completing the
purchase of certain refinerics located
in Philadelphia which would give il
monopoly Ot sugar refining in the
United states. the supreme court held
that such a monopoly was not inter
state commerce, and hence was out.
side the control Of congress. \ curious
legal anomaly is presented here in the
fact that the supreme court viii not
allow the states to interfere with the
distribution of the products of a trust
on the ground that sale across state
lines is interstate commerce, while the
same court will not allow congress &c
interfere, because a monopoly in man.
ufncturiEg, and the subsequent anC
necessary sale Of the product through.
out the union, is not interstate com,
merce."
Congress, this writer affirms, aneadJ
has the power, through an indirect
channel, 10 bring the trusts to book
"While possessing no direct jurlsdic
''oH W 'cBuia'c '"l P'i"t'pi'S' IL mas un
limited power TO tax their earnings
their securities issued and their dlvi
dends. An annual tax can be collected
on all their stocks, and this tax car
he graduated SO as. TO fall lightly o
not at all on the small legitimate com
panies, but heavy enough on the larg,
concerns 70 squeeze all the water ou
uf their capital. A good feature o
such a law would be a tax Of say tel
per cent annually, like the tax OF
state bank notes, on all securities is