Omaha daily bee., 1903-01-07
PROPOSE ANTITRUST LAWS
Cabinet Issues Summary Of Suggestions fol
Controlling Combines.
URGES IMMEDIATE ACTION BY CONGRESS
Discrimination and All Attacks on
Free Competition to he Made ne-
gal and PunIshabie by Circuit
Court of URited states.

WASHINGTON. Jan. 6.-Attorney General
Knox has addressed identical letters to
Senator Hoar, chairman OF the senate judi
ciary committee, and Representative Little
field. chairman OF the subcommittee OF the
house judiciary committee, giving his views
on the subject Of trusts.
These letters are in reply to communica-
lions sent him by Senator Hoar and Mr..
LittleHcld, asking the views OF Mr.. Knox.
The letters embrace three subjects, the
questions which have been decided by the
courts, the questions which are pending in
the courts and suggestions respecting
further Legislation.
Monopoly Must BE Checked.
The following abstract of these letters
was given out at the White House tonight.
1t represents the general attitude Of the
administration on this subject and was
authorized by the president:
The people do not desire the business of
the country to be interfered with unneces-
sarily beyond the control of any tendency
toward monopoly. In this country, where
money Is cheap and abundant and within
poly will be impossible If competition is
Small enterprises have certain advan-
tages. over large combinations, and will live
and thrive II assured of a fair and open
field. Rebates and discriminatory. rates
~ NAC NAAANA ANAAcA1 80
competition. They unjustly swell the earn
tngs of favored concerns, and, by support
Ing a vast volume of capital stock, which
! represents nothing but unfair advantage
over rivals, contributes largely to the up
building of monopoly.
The amount OF capital embarked in indie
pendent enterprises in the past two years
at least equals the total capital of the
great combinations formed within the pre-
vious twelve years. =. With assurance
against predatory competition this improve
ment will continue. Individual Industrial
| aNnaris nORgs with the .paFtaipfy 'Of secure
employment of capital, may be trusted to
compete effectively, with such selfsh con-
monte reasons, but merely in order to cap
italize the countFy's prosperity for the
benefit Of their promoters, The existence
creased the productive capacity Of the
country; they have merely. acquired the
ownership of pre-existing industries.
Recommendation for Legislation.
1t is recommended that the law be
amended In The following directions:
l. That all discriminatory practices af-
fecting, interstate trade be made offenses
to t, be enlotn On ana 5ualshsd; such ttehg HsS
who give and those who receive Illegal ad-
vantages, and to cover discrimination in
localities resorted to for the purpose of de-
stroying competition.
2. A penalty should be imposed upon the
interstate and foreign transportation of
goods produced by them and federal courts
should be given power to restrain such
| IdlAopOLldllul d sNiAt BOA6 lllCA . III
Such legislation is necessary because the
existing interstate law does not
give. an effsetiXs. remedy in, this class of
3. The casus QTnissus in the interstate
commerce act should now be supplied by
imposing a penalty upon carrier and bene-
1ciary alike and by giving to the court the
| right to restrain all such infractions of the
law. The prohibition against carriers
should be limited to those subject to the
act to regulateacommeroe. Only carriers
operating a line of railroad or a rail and
fish their rates and adhere to them. 1t is
, WnnIg8 81 eG RaFSs Of ane @at SPef fpanss
%portation are necessarily, open to the
freest competition, are invariably low by
comparison and thus naturally. furnish the
standard of reasonableness without express
Must Adhere to Published Rates.
4. It should be made unlawful to trans
port traffic by carriers subject to the in
t~erstate commerce act at a less rate than
the published rate, and all who participate
IN violating the law should be punished.
.. Provision should also be made to reach
corporations and combinations which pro-
products enter into Interstate
This provision should relate, first, to the
concerns which fatten on rebates; second,
to concerns which sell commodities below
the general price in particular localities or
which. seek 20 destroy ompeHtlon, EheTe
should be a comprehensive plan to enable
the government to get at all the facts bear
ing upon the organization and practices OF
concerns engaged IN HHltISldlt COhlulcAC Co
not with a view to hampering a Legitimate
business of SUCH concerns, but In order to
be in position to- take action II necessary
To this end a commission of a speciaI
bureau in the proposed department of com
merce should De created, whose duty u
should be TO investigate the operations. OF
7 concerns engaged in interstate or foreign
commerce. to gather and data
/. enabling 1t to make recommendations foI
additional legislation, to report to the
t president. This would be a first step ir
securing proper publicity. This commits
sion should have authority to inquire into
the management Of any concern doing ar
interstate business whenever IT becomes
necessary or Desirable II should AYE IN
compel testimony from all witnesses anc
r the production of books and papers,
, These eommendations are based on thu
central thought that the first step should
be taken by a law aimed at what arr
known 10 be international practices directly
3 restrictive of and by a law Sc
. curing some governmental supervision al
, outlined above,
speed the final decision of cases pending Of
Intending to be raised under the anti-trus
, laws providing for such eases by a bencl
J of circuit Judges, and direct appeal from
the circuit court to the supreme court o
the United States.
Approves New Bureau.
Representative Mann CIll.) today reporte
for. the house committee on interstate an
o foreign a substitute for the sen
e ate bill to establish a new department o
commerce and labor.
d With reference to the proposed bureau O
. corporations, the report says:
a The creation Of this bureau will make !
the duty OF an officer of the government I
deal with the matter OF corporation infor
: nation and report recommendation con
corning the manner and extent TO whic
corporation transactions In interstate CON
merce shall be subjected to the innuenc
OF national legislation. Your committee DC
lieVes. that this Is a practical step toWar
the legitimate control OF corporations en-
re gagged in commerce among the states.
ID A minority report, signed by Representa-
n tives Richardson (Ala.) and Davis Ella.
IS was filed in opposition 10 the transfer {
d the department Of labor to the department
n, Of m as tending to subordinate an
lake from the formers dignity.
p, Senator Clay Has N Plan.
= Senator Clay (Ga) today introduced a bi
to provide for the free importation OF CON
modities controlled by trusts. The bill col
- fers. upon the president authority to issu
= a proclamation suspendipg the e~ollectio
- OF all customs duties upon such article
brought from foreign countries. This pre-
= vision is, according TO the terms Of the bill
~ to be exercised whenever the president sha
g become satisfied that there is a combinatiC
ne tntendad 10 create a monopoly by preyentiI