New-York tribune., 1902-10-15
KNOX TALKS on TRUSTS
DOESAOT THINK A AliENDMENI
NECESSARY FOR CONTROL.
DE Tells OF THE LIMITATIONS OF The
SHERMAN ACT AND WHAT has BEEN
DONE Under PRESENT LAWS.

DONE Under PRESENT LAWS
pittsbure. OCT "a is-Auorney General Knox
addressed tho members II the Chamber of COM
rnerce ~ the Hotel Sohenley here tonight.
There were seven hundred guests The subject
~ ms address was The Commerce Clause 81
rhe Constitution aud the Trusts" Mr. Knox
was aftervard entertained by W. Il. keech,
chairman OF rho committee IN charge of the
meeting
These great oonbinatons nov ny nguaoeTing tnGS don
sands. arc ths nstrllmcntaltles OF rnoo9tin l-.
sppan no healthy American. We are eceustomea
Ne aT. sgeae,omed 10 spesK with iustihahle
pride OF our great institutions ara What We r5sSf
thinlzing man dcsres 70 impalr the eincleney 9 81
Sional commcrcial development. Because they are
great and prosperous IS no suinclshl - ls,,sr
gty not a. result Of the defiance Of the ,bsTe SS1
81 no just cause OF complaint. -,
That there a-e evils and abuses IN trust promo
Faent snd efectz noae question except those who
hsNe prohteo ~ ,hoSe evils That -, al n lsrre ' or
RauiZafion called trust no one would assert Ml-'
The conspltGoas noEious features of trusts ex-
istent possible are These oNefcaIt :,
prices 10 6es ,rov compe,ition insuficent personal
,,,rsts mana p..n,e,5t torseTcy Ia monopoly and
iacR OF sppreci alton in their manaEement 81 t%heT %
sre T'ilSpS 1ep,,ea ~ ne 70 aSisP RsisPie io' "i'-
The CHIEF EVIL.
Overcapualzation S the CHIEF ~ these and ne ne
Eouroe from which tho minor ones loH- srrrisbes
ihe ,enrtat,ons and opportunities for most OF The
SsP5azat tton ~ capijaIizaton adequate Tor ,he
greatest undertakings. u is tle lmposlnoh s 1l5I
inc asset 10 represent ID Therefore overcap aZa ,
ZION Is 4 fraul upon those Who contribute The real
efforts realize dividends thereon ron oIeralles
pubic WSen aropertv worth s. s,,e5 uron
S6 ana sold - me public N Is rational assume
shat us purchasers wil exert every ehort 70 keep
.NVhen the inevitable depression comes vases must
he reduced prices enhanoeq oT aikloras s5 bt
lowered in .ful periods y ususIy res'''ts i'S'"
while tins condition msy exist undeT any ~ ,3 Gtr
cumst suoes. i IS exaggerated by overcar -
capitalized securities enter into The general bposst
and they Haetuste between wider ranges, and are
sensitive m proportion as theS are -. ne
lsbi 80 ~ storm e. rss of fnancal dsturbances
@ ,r dai iar i9c-ease the temptation 20 mis-
management and manipulation 2, corporate 90
snnistrators
CONDITIONS SHOULD RE UNIFORM
Corporations snd loint stock OF other assoel3
sions. depending upon any statutory a" ioL tL.ll
existence ~ priylleges tTaalhg PtyoI1 thTr E & | /.
State and locality upon precisely the same terms
soa sn9 9 pri @ no % fTsSoss in seros such
eorPorstlons serving i. PuoS s5 as SaTT S kan ana @ IN
avenue. o. commerce free and open, % an upon
Injunction against sunmg competition. More
over. corporations upon which IN ne people 5 1sIe.o %
'eondgct their business 80 ss % %rsggisrly and rea
T6el should + subieet 10 visitSrial supervision
snd fun and accurate Information rs - their oP-
sp,erTals Seerec4 n fhe conduct and results II
sS1srstion is unfair 10 the non-managtng stockhod-
srs. ana should, as wen for reasons Of state be
~ these serious evils were ersdicated ana high
MEASURE Of administratiVs rssponsnillty re
1.Se tS5 IN SsS'inP ne ~, Table sbprehensior
that the 1nehecSea aggrS.s = q nc g9sIs Ai va
aess ~ nc country
THE SHERMAN LAW.
~ Knox then took up the Sherman anti
srust Law and the limitations in the govern
Enents control Of trusts under IT, He showed
khese by two suits brought under rhe law--one
sgainst the Sugar Trust and fhe other against
she Addyston Pipe Combination. In the case OF
rhe Sugar Trust II had been impossible 10 do
Rnvthing because while the trust did control
fhe sale ~ sugar through monopolizing the
manufacture, yet, as the purpose OF the comb
hRtion was 20 control the production and the
tale was incidental 10 this purpose the trust
r0uld not be held 70 be within the law which
applied only 10 commerce. In the Addyston
ease a combination was formed primarily 10 re-
strain the sale Of pipe, and This combination the
government broke up
Thus, under the sherman laW, the govern
snent was limited 10 acting in cases 81 combi-
Nations formed for the express purpose OF re
straining Interstate commerce, while the States
could crecte corporations having the power 70
DO indirecgly what the government was trying
20 prevent Many persons thought that the
Sherman Law expressed the full power OF the
government, which could NOT interfere with pro-
iduction this heing q subject for state control
But Mr. Knox disagreed with This view when
ahe control Of production Indirectly affected
nrrnhH
Fend the interstate commerce laws 50 as hv IN
direct action 70 destroy Fnonopoues as wen as
1nonopolles could indirectly control commerce
and this vithour en- aneRdrnent 70 the consti-
hution
The existing laws had been adequate 20 break
np several combinations, said NJ. Knox and ne
On these instances railroads had made special
men. The Interstate Commerce Commission bad
Enade Investigation ans through The Deparfr1ent
uf Justice had broken up the combinations The
ntteTnpf ~ fhe Southern railroads 20 saw Nv
shnt route cotton should he shipped in dehance
az the wish OF The shippers had also been pre-
vented. In addition 70 stopping the railroads
7rom making special rates 20 the Beef Trust
We trust itself had also been attacked The
Northern Securities Company was another COM
bnation which the government was endeavor-
sng 20 destroy This showed four phases OF
combinations IN restraint of trade which were
1855 ss,<kssN sskksyss s>,1 a oun,v-Eszu,.un..