The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-01-09
ATTORNEY GENERAL KNOX'S VIEWS
In a Letter He Gives Suggestions
Respecting Further Legislation on
the Subject of Trusts.

80 2-AO Alho "NN1
letters 10 Senator HOdr, chairman of
the senate judiciary committee, and
Representative Littiefeld CHAIRMAN OF
ths subcommittee OF the house judi
DIARY committee giving MS views on
she subject of trusts. These letters are
IN reply to Mr.. Littleield asking the
views Of MIR. Knox. The letters en-
brace three SUBJECTS, tne Questions
which have been DECIDED by TIE courts,
she questions which are pending in the
courts and suggestions respecting
further legislation.
Under Une latter head Mr.. Knox says:
The end desired by the overwne!-
ming majority of the people o. all Sc
irons of the country is that cOmbina
lions Of capita! should be regulated
and not destroyed, ana that measures
should be taken to correct the tendency
toward mOnopolizatiOn of the indus
trial business of the country. l as
sume d thing to be aVoIde1.. even Dy
suggestion, Is legislation regarding thc
business interests Of the country De-
yond sUcn as will accomplish this end.
I'm my Judgment, 4 monopoly in any
Industry would be Impossible in tniS
country, where money is abundant and
cheap and IN the hands OF within the
reach OF keen and capable meG il COM
petition were assured OF q fair and open
field and protected against unfair, ar
tificIaI and discriminating practical re
suits.
If the law will guarantee to the
smaller producer, protection against
piratical methods in competition aid
keep the highways to the market Operr
and available to him for the same tolls
charged TO his powerful competitor, ne
will manage to live and thrive to an
astonishing degree.
Il believe the rebate and kindred ai-
vanta5es granted by carriers to large
operators in the leading industries Ct
the country. as against their compete
tors. in many years amounted to a sum
that would represent fair interest upon
the actual money Invested IN the busI-
ness Of such operators.
decentralization, in almost every case
Of a holding p represents FAR
more than the aggregate intrinsic va
ne of its constituent companies. The
method of computing values Tor puI-
poses Of concentration has invariably
been upon earning power, ant rebates
have frequently sWelled earnings %
that enormous volumes OF capital
stock represent nothiag but unfair adj
vantage obtained over rivals.
The situation is mu-h improved in
Eespect to transportation d'scrlmlnt
tons within the last TWO years. This
- the result, first, OF a determined ef-
fort on the part of the government TO
apply existing laws II an effective way
against dlscriIni ma on S;and second, TO
the act hat some Of the higher mind
ed railroad OF the country
have exerted Their large influence IN
the direction of '~4uitaDle dealing with
the shippers of tie territory which they
erve. Whethe. it is & consequence or
these influences or a mere coincidence
1t is neyerthe eSS stated on high au-
thority 10 be q fact that the embarka-
ton of new capital in enterprises in
competition with the supposedly COO
trOIled Industries within the PERIOD
named probable equaIs the capital OF
the trusts. The effe"t OF certainty of
protection against predatory compet-
ton can be safely ~prOphesied to in
crease his figure.
AIy suggestion, therefore, is that as
q first step in a policy TO be persistent
ly pursued until every industry large
and small, in the country can De as
cured of equal rights and opportunities.
and until the tendency to m~OnOpoIIza
ton of the important industries Of the
country are checked, that all dlscrIml-
IatOTy practices affecting interstate
trade De made offenses to be enjolnai
and punished. Such legislation to be
directed alike against those who give
and those who receive the advantages
thereof. anG to cover discrimination In
prices as a~a-ainst competitors in par
ticular localities reSOrted to for the
purpose of G %.stroying competition in IN
tc~r-state anu foreign trade, as well as
discrimination by carriers.
Such practices are so obviously un-
reasonable that TO inhIbit them would
b. a measure of regulation of commerce
to keep il free and u~nreStrained and
not to attempt to exercise arbitrary
power. Such legislation. to certainly
reach producers guilty of practices in
furious TO national and International
commerce. should, in my Judgment.
AXE the form Of ~penaliZiHS the trans
pOrtation OF the goods produced by the
guilty parties. ard the federal courts
shOvld be given power to restrain such
transportation as the suit of the gov
ernment-
1t may be said that under the act
To rpgulate commerce. a shipper may
BE- published FOR receiving rebates ~
special rates less than the lawful
published rates; and hat L is unneCes-
sary 10 provide additional legislation IN
his respect t. curb trusts, m~onopol:es
and combinations This. however, Is;
en- statement
Nr. nOX points out the ineffectlVe-
Eess of the interstate act IN
reaching unlawful concessions in ral.-
Hay rates and COC on to say:
The caSus OF Omnissus OF the act
- regulate commerce should be sup
piled by imposing = penalty apo The
incorporated carrier and beneficiary
alike. and The right OF thS courts to r.
strain such practices ~ the suit OF the
United States. Il right not settled ard
now vigorously challenged. should BE-
made certain.
1t should be made unlawful TO
transport traffic by carriers subject 20
the act 10 regulate commerce at any
rate less han sue carriers published
rate and all who participate il the VIC
Latiou OF such law should he punished.
An additional provision should he
made to reaCh corporations. comb ma
TlOns and associations which produce
and manufacture wholly within 4 state
but whose products or sales enter into