New-York tribune., 1903-01-07
4DMINISI'R4 H ITON VEWS
Statement Of It's -4ttitude on Trusts
authorized by the President.

Washington. Jan. 6.-The following abstract Of
the Attorney Generals recommendations re-
garding trusts and combinations. which were
made public at some length to-day. was given
out at the White House tonight. 1t represents
the general attitude of the administration
this subject and was authorized by the Presi-
dent:
PRELIMINARY.
The pc 1ple do not desire the business of the
country 20 be nterfered with beyond the regu-
lation necessary to control combinations where
they act Improperly and to correct any tendency
toward monopoly. In this country, where money
is cheap and abundant and within the reach OF
keen and capable men, monopoly will he impos
sibIe If competition is kept free
Small enterprises have certain advantages
over large combinations, and will live and thrive
if assured of an open and fair field. Rebates
and discriminatory rates constitute one of the
chief restrictions on competition. They
justly swell the earnings of favored concerns,
and supporting vast volume of capital stock.
which represents nothing but unfair advantage
over rivals contribute largely to the upbud-
ing of monopoly.
The situation respecting transportation dis
ordinations and the entry Of independent capi-
tai into new industries has lately been improved
1t is now known that the amount of capital en-
two years at least equals the total capital Of
the great combinations formed within the previ-
Gus twelve years. With assurance against
predatory competition. this improvement will
continue Individual industrial experience. with
the certainty of secure employment of capital.
may he trusted to compete effectively with such
selfish combinations are not formed for sound
economic reasons but merely in order to capi-
talize the country's prosperity for the benefit Of
Of Of hasa
combinations has not increased the productive
capacity of the country: they have merely
quired the ownership of pre-existing industries.
RECOMMENDATIONS FOR IMMEDIATE
LEGISLATION
That all discriminatory practices affecting
interstate trade be made offences to be en-
Joined and punished.
Such legislation to be directed alike against
those who give and those who receive Illegal ad-
vantages and to cover discrimination in prices
as against competitors in particular localities
resorted to for the purpose of destroying COM
petition.
In order to reach producers guilty of these
offences who are as producers. merely beyond
national control. 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 trans
portation at the governments suit.
Such legislation is necessary because the
isting Interstate Commerce law does not give
effective remedy in this class of cases against
either SHIPPER or carrier
The casus omissus in the Interstate Commerce
act should now be supplied by imposing a
penalty upon carrier and beneficiary alike, and
by giving to the courts the right to restrain all
such infractions of the law.
The prohibition against carriers should be
limited to those subject to the act to regulate
commerce Only carriers operating a line Of
railroad or a rail and water line one line are
required TO publish their rates and adhere 10
them. 1t is impractcable TO control lines oper-
ating wholly by water. Rates of water trans
portation are necessarily open to the freest COM
petition, are invariably low by comparison, and
thus naturally furnish the standard of reason
ableness without express regulation.
1t should be made unlawful 10 transport traffic
by carriers subject to the Interstate Commerce
act at lower rate than the published rate. and
all who participate In violating the law should
be punished.
Provision should also be made to reach cor
porations and combinatio which produce
wholly within State. but whose products enter
interstate commerce. This provision should re-
late. first to concerns which fatten On rebates;
and second TO concerns which sell commodities
below the general price in particular localities
or in any other way in particular localities seek
destroy competition.
There should be comprehensive plan to
able the government to get at all the facts
bearing upon the organization and practices of
concerns engaged in interstate commerce, not
with a view 10 hampering any legitimate busi-
ness of such concerns, but in order to be in
position to take action. II necessary.
To this end commission special bureau
in the proposed Department of Commerce should /
bs created. whose duty IL should be to investi- !
gate the operations of concerns engaged in (
interstate or foreign commerce. to gather in /
formation and data enabling IL to make recon- T!
mendations for additional legislation to report
m the President. This would he first step +
In securing proper publicity. This commission I
should have authority to inquire into the man !
agement of any doing interstate /
business whenever il becomes necessary or de- +
sirable; il should have the authority to call for I
reports from them. to compel testimony from /
all witnesses and by the production of books, 1
papers etc
These recommendations are based on the cen I
trail thought that the FIRST step should be taken +
hv a law aimed at what certainly known To I
be unreasonable practices directly restrictive of
freedom of commerce. and by law securing ,
some governmental supervision outlined i
shoye 4 speciaf act should be passed at once !
- sneod the final decision Of cases pending or .
In be raised under the present Antl-Irusf law /
nrovidine for the hearing or such cases Dy {
mn bench of circuit Judges and for direct /
a meal from the circuit courts 20 the supreme I
Cn,trr OF the United States.