The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-03-11
DECISION
. Is SWEEPING
UNITED STATES SUPREME COURT
WIPES OUT ANTITRUST LAWS
OF THIRTEEN STATES
ALL ARE UNCONSTITUTIONAL
Clause EXempting Live Stock and
Agricultural Interests Held TO
Be in Violation of the Four
teenth Amendment.
JUSTICE MKENNA DISsENTED

JUSTICE MKENNA DISSENTED
WASHINGTON, March 1O-The Illinois
antitrust law received a blow today at
the hands of the supreme court of the
United States, which rendered a decision
in the case of Thomas Connolly against
the Union Sewer Pipe company, an Ohio
corporation, in favor of the latter.
Connolly failed to pay for the pipe sold
him in Illinois, alleging that the company
was combination operating in violation
of the Sherman antitrust law and of the
Illinois statute against industrial COM
binations
In delivering the opinion of the court,
Mr.. Justice Harlan said that the case had
come to the supreme court on a writ of
error from the circuit court of the United
states for the northern district of Illinois,
which had held the state antitrust law to
he unconstitutional because of the pro-
vision on discriminating in favor of farm
products. Section of the Illinois law
upon which Justice Harlans opinion was
based is to the effect that 1.-The provisions
of this act shall not apply to agricultural
products or live stock while in the hands
of the producer"
First stating what could be done under
the statute without the eXempting pro-
arrangement or combination between the
Union Sewer Pipe company and the
other companies, corporations and firms,
created and constituted such a trust as
the Illinois statute forbids is manifest
from the evidence in the record. 1t is
equally clear that if the plaintiff was an
Illinois corporation, it's charter could be
forfeited and an end put to its corporate
existence by proceedings instituted by the
attorney general of the state. 1t is also
clear that If the statute is valid, the de-
PENDANTS could plead non-liability for the
pipe purchased by them upon the ground
that the plaintiff was an illegal combina-
ton and the contracts which it made with
the defendants void under the statute of
Illinois. The statute expressly authorizes
such a defense"
He then took up the question of the eff
fect from the exempting section, sustain
ing the view of the circuit court that
this section is repugnant to the four
teenth amendment of the constitution of
the United States and further that it is
so connected and interviewer with other
sections of the act as to invalidate the
entire act following is portion of his
argument in support of this position:
Justice HarIan's Ruling.
IF combinations of capital, skill or
acts, in respect of the sale and purchase
OF goods, merchandise or commodities
whereby the persons, firms, corporations
or associations forming such combina-
tlonS may control or establish in their
0lscretlon, the prices of such goods, mer-
chandlse, or commodities are hurtfuI to
the public interests and should be sup
pressed, 1t is impossible to perceive whv
like combinations in respect of agri-
cultural products and live stock are not
equally hurtful.
Two or more engaged in selling drv
goods or groceries, or meats, or fuel. or
al ri fnar
statute criminals, and subject to a fine
If they combine their capital skin or
acts, for the purpose of establishing.
controlling, increasing or reducing prices
or OF preventing free and unrestrained
competition among themselves or others
In the sale of their goods or merchandise:
nut their neighbors who happen to be ag-
rcuiturists and live stock raisers NAV
make combinations of that character in
reference to their grain CT live stock
without mourning the prescribed penalty.
Under what rule Of permissible cIas-
Slhcatlon can such legislation be sustain
cd as consistent with the equal protection
OF the laws? To declare that some of the
general class engaged in domestic trade
or commerce shall be deemed criminals
Il they violate certain regulations pre-
Scrlped by the state for the purpose of
protecting the public against illegal COM
blnatlons, which have for their object the
destruction of competition and the con-
troll Of prices, and that others of the
general class, also engaged in such trade
or commerce, shall not be bound TO re-
gard those regulations, but may combine
1her capital, skill or acts to DESTROY
competition and to control prices for their
benefit exclusively, is so manifestly a de-
Mai OF the equal protection of the laws
that extended argument to establish that
position would seem to be unnecessary"
One Dissenting Opinion.
Justice McKenna delivered dissenting
opinion. He contended that the equality
of operation which the constitution re-
qures in state legislation cannot be con-
strued as demanding absolute universal
ity of operation, having no regard to diff
ferent capabilities, conditions and reIa-
tions of men. Hence classification is
necessary. He then suggested that the
distinctions made in the Illinois statute
ere proper, and added:
The excluded class is comnosed of
farmers and stockraisers while holding
the products of live stock produced or
raised by them. The included class is
composed of merchants, traders, manu-
facturers. all engaged in commercial
transactions. That is, one is composed of
persons who are scattered on farms. the
other class is composed of persons con-
gregated in cities and towns, not only
of natural persons. but of corporate or
CARNATIONS. In the difference Of these
situations, and in other differences which
will occur to any reflection, might not the
legislature see difference in opportunities
and powers between the classes in re-
gard to the prohibited acts''
The decision of the court in effect de-
clares unconstitutional the antitrust
laws of Georgia, Illinois, Indiana, Louisi-
ana Michigan, Mississippi, Montana. Ne
braska, North Carolina, South Dakota
Tennessee, Texas and Wisconsin
In each Of tnese states there is an ex-
emption of live stock and agricultural
products, in the hands Of the raiser or
producer, or of labor organizations. Under
the rulings of the court an antitrust law
to be constitutional must apply indis-
criminately to all combinations, with no
exemptions or exceptions whatever.
Strike for Eight-HOur Day.
DENVER, Col, March 10-The car
TlaRe-makerS, machiniStS ma ttyaSc-