The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-15
A Federal judge ON til" Trust
Question.

SrHNGER GRossCuP of the United States
Circuit Court for the Seventh judicial
Circuit. Judge GRossCUP has been con-
oerned on the Federal bench with some
highly important cases involving funda-
mental principles: and he has been IN
the main solid rock against socialistic
and other attacks gainst the freedom OF
business and the rights Of ownership.
To the discussion Of the so-called
trusts. the industrial methods and ten
denotes Of the times. and the proper eS-
tent and character Of Federal super
vision Of the same. Judge GRossCrP
brings an independent mind, and con-
siderable power Of lucid statement. His
ideas are in many respects in such re-
freshing contrast with the current cant
of the sociological philosophers, and
some OF his suggestions are 80 original
and interesting that we reproduce the
address in full while dissenting emphati-
cally from az least one of the Judges
conclusions
That part of Judge GRossCUP's essay
which will attract the most general at
tention expresses his deliberate opinion
that the Sherman Antitrust law of 1890
is essentially vicious and practically
futile, and ought, accordingly, to be re-
pealed by Congress. Now, this law is
the basis or nucleus of nearly all pending
schemes for the further Federal control
Of private business, except in the pro-
gramme Of those trust repressors who
believe that an amendment of the Con-
stitution is in the first instance necessary.
Yet this distinguished Federal iuris,,
with judicial experience of the work
ings Of the Sherman act. pronounces II
unwise in conception ineffective even as
a measure Of unwisdom. aud radically
repugnant To public policy. Logically
and impartially enforced, =" he SAYS. 1that
act forbids two Erocers, on opposite cor
ners Of the street, from forming a CO.
partnership to save expenses; partially
enforced IT puts the industries of the
land at the mercy. not Of the law, but Of
the officers of the law
Sound and admirable aud very useful
are Judge GRossCrp's remarks on the
folly Of hating or attempting TO ex-
terminate natural process Of CONSOLE
dalton whose beneficial results have
been Illustrated SO consplcuously in the
gradual evolution of our present sys-
TEN Of railway management Who
of this generation" he asks, would
now go back to the railways OF our
fathers? Who, except the irresponsi-
hlp ~ n mr. fhp
private fortunes picked up in the process
of consolidation Here. in his broad
view of the modern development OF
business under economic. not political.
laws, and likewise in his reiutation of
such specific objections to trusts as
that they lessen wages, are responsible
for an increase in the cost of living
menace society by too large aggrega-
tons Of capital, and put too much power
in the hands Of individuals, Judge GROSS
CUPS ideas and arguments are worthy
of attentive study.
The main danger that this intelligent
observer perceives in the growth of
the new and larger system of doing
business is that which may result from
the wholesale withdra wal of small in
vestments in The industries of the land
He appears TO think that the tremendous
gains of recent times in the total of bank
deposits indicate not merely me general
prosperity of the country. but also a
process Of change by which, concur
rently with the formal ion of great cor
porations, the small investor is leaving
the field, crowded out of propretorship
and thus deprived of his individual
stake in the industrial system and con-
sequently of his interest in our Amer-
can institutions,
This is at least an ineligible propo-
sition. IT Judge GRossCUP does not
overestmate the extent of the change
his apprehensions concerning il may
not be without reason. We are inclined
To think, however. that he confOunds in
some degree the mere concentration OF
administrative management with what
would be quite different thing, namely
the dangerous conCcn' ration of owner
ship. Money deposited in the savings
bank is not, IA a rule, withdrawn from
the industrial activities of the country
To Use his own ilust ration of the rail-
roads, we are not aware that the process
OF consolidation which has been going on
for years has necessarily reduced to a
perilously small number the list Of in
dividual stockholders and propretors in
the various great railway competitions
We regard, however, as exceedingly
valuable Judge GROssCUPs discussion
of this branch Of the subject. We agree
with him that the stability of the State
requires general proprietorship. widely
spread among the people and we venture
the opinion that nothing i so much de.
sired by the intelligent managers of the
so-called trusts
The least carefully considered part OF
Judge GEoSsCrP's address appears "a
be tnat in which he undertakes to specify
the legislation that ought TO replace the
Sherman Antitrust act after that has
been repealed. He says vaguely that
the new legislation should provide
against artificial prices and conspira.
cies to corner the supply, against dis
elimination in rates; for stated examina-
tons Of the books and periodical state