The Savannah morning news., 1903-01-07

KNOX NAMES REMEDIES
FOR THE TRUST EVIL

Washington, Jan. 6.-Attorney Gen
eral Knox has addressed identical let
ters to Senator Hoar chairman of the
Senate Judiciary Committee. and Rep
resentative Littleheld chairman of the
subcommittee of the House judiciary
Committee, giving his views on the
subject of trusts. These letters are in
reply to Mr.. Littleheld, 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. Under
the latter head Mr.. Knox says:
THE end desired by the overwhelm-
ing majority of the people of all sec
tons of the country Is that combina-
tons of capital should be regulated
and not destroyed, and that measures
should be taken to correct the tendency
toward monopolization of the indus
lrlal business of the country. l as
sumo a thing to be avoided, even by
suggestion, is legislation regulating
the business interests of the country
beyond such as will accomplish this
end.
I'm my Judgment, monopoly In any
industry would be impossible in this
country, where money is abundant and
cheap and in the hands or within the
reach of keen and capable men If COM
petition were assured of a fair and
open field and protected against unfair,
artificial and discriminating practices.
IF the law will guarantee to the
smaller producer protection against
piratical methods in competition ana
keep the highways to the market open
and available to him for the same tolls
charged to his powerful competitor, he
will manage to live and thrive to an
astonishing degree.
II believe the rebates and kindred
advantages granted by carriers TO large
operators in the leading industries of
the country, as against their COMPETE
tors, i'm many years amounted to sum
that would represent fair interest upon
the actual money invested in the bust
ness of such operators.
capitalization, in almost every case
of a holding company, represents far
more than the aggregate intrinsic value
of it's constituent companies The
method of computing values for pur-
pose of concentration has invariably
been upon earning power, and rebates
have frequently swelled earnings so
that enormous volumes of capital stock
represent nothing but unfair advantage
obtained over rivals.
The situation Is much improved in
respect to transportation discrlmina-
tions within the last two years. This
is the result, first, of a determined ef-
fort upon the part of the government
to apply existing laws in an effective
way against discrimination; and sec
ond, to the fact that some of the high
er-minded railroad managers of the
country have exerted their large in
huence in the direction of equitable
dealing with the shippers of the terri
tory which they serve.
Whether IL is consequence of
these influences or mere coincidence,
it is nevertheless stated on high au-
tbority to be a fact that the embarka-
ton of new capital in enterprises I'm
competition with the supposedly con-
trolled industries within the period
named probably equals the capital OF
the trusts. The effect OF certainty of
protection against predatory COMPETE
ton can safely be prophesied TO in
crease this figure. My suggestion,
therefore, is that, as a first step in a
policy to be persistently pursued until
every industry, large and small, in
the country can be assured of equal
rights and opportunities, and until the
tendency to monopolization of the inn
portant industries of the country is
checked, all discriminatory practices
affecting interstate trade be made Of
lenses to be enjoined and punished,
such legislation to be directed alike
against those who give and those who
receive the advantages thereof and to
cover discrimination in prices as
against competitors in particular To-
calities resorted to for the purpose of
destroying competition in interstate
and foreign trade, as well as discrimi-
nation by carriers.
Such practices are so obviously un-
reasonable that to inhibit them would
be a measure of regulation of COM
merce to keep 1t free and unrestrained
and not an attempt to exercise arbi-
trary power. Such legislation to GER
tainly reach producers guilty of prac-
tees injurious to national and interna-
tional commerce, should, in my judg-
ment. take the form of penalizing the
transporta ton of the goods produced
by the guilty parties and the federal
courts should be given power to re-
strain such transportation at the suit
of the government.
1T may be said that under the act
to regulate the commerce a shipper
may be punished for receiving rebates
or special rates less than the lawful
published rates; and that it is unnec-
essary to provide additional legislation
in this respect to curb trusts, monopo-
lies, and combinations This, however,
is an erroneous statement"
Mr.. Knox points the ineffectfveness
of the Interstate Commerce act in
reaching unlawful concessions in rail-
way rates and goes ON to say:
This casus omissus of the act to
regulate commerce should be supplied
by imposing a penalty upon the incor-
porated carrier and beneficiary alike,
and the right of the courts to restrain
such practices at the suit of the United
States, right not settled and now
vigorously challenged, should be made
certain.
1T should be made unlawful to