Omaha daily bee., 1902-10-15


Knox addressed the members of the Cham
Der Of Commerce at the Hotel schenley
here tonight. There were 700 guests pres
ent.
The subject OF his address was The
Commerce Clause Of the Constitution and
the Trusts"
Objectionable Features TO Trusts.
The people by common consent have de-
nominated the great industrial and other
eorporations now controinng many
Tbese sresf ccmbinations nov; ni,nnhering
thousands are the instrumentalities OF
modern commercial activity. Their number
and size alone appal no healthy American.
Because they are great and prosperous
is no sufficient reason for their destruc-
not the result OF the defiance of the ma
turel rights or recorded Will OF the peo-
PIE there ,Ss, no SSst cause @ Ssss oil copla ~ trs
promotions, purposes. organizations, meth
DDS. management and effects none ques-
those evils. That all or any of these
abuses are TO be found in every large. orga-
ser %ho vsaeS hS 0h for
the conspicuous noxious features Of
trusts existent and possible are these:
Overcapitalization, lack of publicity of OPP
Grafton, discrimination in prices to destroy
competition, insufficient personal respon-
sibillty of officers and directors for corpo-
rate management, tendency to monopoly
ana lack OF appreciation III lhelT manage
ment of their relations to the people, for
whose beneht they are permitted 10 exist.
Corporations dependent upon any stat
utory law for their existence or privileges.
trading beyond their own state, should be
required 20 90 business in every state and
conditions There should be no discrimi-
nation in prices; no preference In service.
csrriers and IN Similar Capacities should
be compelled 20 keep the avenues of COM
merce free and open to all upon the same
Moreover. corporations upon which the
Should should be required to conduct their bust
ness so as regularly and reasonably to
supply the public needs.
subJect TO suPervisaon.
They should - .Ashte,r. 20 xisitorial- SUI
pervision and fuift ana accurate informa-
tion as to their operations should be made
regularly at reasonable intervals. Secrecy
in the conduct and results OF operation Is
and should as well for reasons OF state be
n these serious evils were eradicated and
a higher measure OF administrative respon-
sibility requried in corporate ofhcers, a
long step would be taken toward allaying
the reasonable apprehension that the un-
checked aggression of the trusts Will re-
suit in practical monopoly OF the I'M
ing the mischief Of trusts than in suggest
Il is not enough that trust or corpora
tion owning corporations exists, or that II
is engaged in Interstate or foreign com
Is not prohibited, or that IL monopolizes
production throughout the country or that
Il is formed to restrain or monopolize busi-
ness within a state, or destroys competi-
tion In buying or selling within a state, or
that by any of these things Il indirectly
affects Interstate commerce with practi-
cal restraint OF monopoly, TO bring the cor
%itSin the or emphatie clause or undeT the
drastic penalties of teh antitrust law
What seems to be necessary Is 70 establish
the direct monopolzation or restraining OF
what is strictly interstate commerce, and
Sffairs are conducted upon the best iega
advice as TO what Is and what Is not OBJ
ingeniously cor contTived 10 avoid the letter O
the law.
Limitations of Law.
want to call your attention to this law
not In spirit Of criticism. but to shov
you clearly how far It went and where 1
II undertook to invalidate all attempts t,
monopoliEe interstate commerce. which In
transportation' but Il did not invaiidat
monopolies Of production or regulate com
Testrsints % NJ sGS such monopoIies 20 S Indirectly i'm i'm
pose. The court did not say that these in
direct saee.s upon Ia'g5S hS IS
earnestly contended by many that as
stands this law expresses the limit of fed
congress the power by it's regulation {
protect commerce between the states froI
combinations comb s''s engaged in iHterstate trade
when their purpose or effects is 70 destro
the freedom of such interstate trade, an
when their operations are besides injuriou
20 the general public?
II it Be true that a state can authoriz
or permit a monopoly of production With
its borders because II has the power owe
production as such, although II indirectl
affects interstate commerce, may not tn
United States regulate interstate commerc
over which II has exclusive control, eve
sSegss as saeS sss no
II congress under Its power 20 regulat
interstate commerce may utterly destro
interstate transit, as the Sherman act pre-
vides, because Il restrains such commerce
in the exercise OF the same power DENY
a combination whose life Il cannot reac
the privilege Of engasing IN interstat
gress may prescribe TO protect that con
merce from restraint Such regulatio
would operate directly upon commerce an
only indirectly upon the instrumentalitit
and operations OF production
II the sherman act exhaIsts the pow'
OF congress over monopolies, the America
people find themselves hopelessly impoten
facing a stgation fraught with the mo-
the federal nor state governments can dea
OpiniONs on Constitution.
While states may regulate the produetio
and sale OF articles within their own be
ders, at these borders their authoril
ceases,
Jefferson, In his letter OF March Is. II,
20 Madison. says of the constitution: 9Th
instrument forms us Into one state I
10 certain objects and gives us a legisl
tive and executive body Tor these objects
One hundred years later the supren
court OF the United States declared 9TH
in the matter OF Interstate commerce Il
United States are but one country, an
are and must be subject 10 one system
regulations, and not 10 a multitlle
These statements OF the ORIGIN
purpose, IN founding this COVER
ment 10 provide for national co
troll OF intercourse. and Of the exte
ef the national power over a.. These stat
ments were made. respectiv by IN
great leader OF the constructive peri
who was most jealous for the ressrv
rights OF the states against the encrOac
ment Of the new national sovereignty, Al
ky one Of the wtsest judges who have
terpreted the constitutions purpose al
(oOntinusd on Second PaSs)