The Montgomery advertiser., 1903-01-07
HAS PUBLICITY FEATURE
The Present Laws are in Need
 of Amendment.
Declares That in Many Cases the Independents Have the Best of the corporations-Rebates.
 the Bane of Business.
 Watered Stock.

Washington, Jan. 6.-The following ab- stract of the, Attorney Generals view re- garding trusts and combinations was made public at length today and was given out at the White House tonight. It rebfesents the general attitude of the administration on this subject and was authorized by the President:
 'Preiiminary-The people do not desire the business of the country to be inter- fered with beyond the regulation neces- sary to control combinations, where they act improperly. and to correct any ten- dency toward monopoly.
 Tn this country where money is cheap and abundant and within the reach of keen and capable men. a monopoly will be impossible if competition is kept free. Small enterprises have certain advantages over large ones. and will live and thrive if assured of an open and fair field.
 Rebates and discriminatory rates con- stitute the chief restrictions on competi- tion. They unjustly swell the earnings of favored concerns and supporting a vast volume of capital stock which rep resents nothing but unfair advantage over rivals. contribute largely to the up- building of monopoly.
 Situation Improved.
 ''Ths situation respecting the transpor- tation discriminations and the entry of independent capital into new industries has lately been improved. It is now known that the amount of capital embarked in independent concerns in the past two years at least equals the capital of the great combines formed within the past two years. With a predatory competi- ton, this improvement will continue. ln- dividual interests will experience the certainty of securing employment. and capital may be trusted to compete ef- fectively with such selfish combinations as are not formed for economic reasons, but merely in order to capitalize the country's prosperity for the benefit of their promoters. Most of these combi- nations have not increased the productive capacity of the county; they have merely acquired the ownership of existing in- dustries.
 Recommendations for immediate leg islation: That all discriminatory prac- tices arising in interstate trade be made offenses to be enjoined and punished.
 Such legislation to be directed against those who give and those who receive, and to cover discrimination In prices as against competitors in particular local ities, resorted to for the purpose of de- stroying competition.
 "In order to reach producers guilty of these offenses, who are, as producers, merely beyond national control, a pen- alty should De imposed upon the inter state and foreign transportation of goods produced by them and Federal courts ataa ha 0iN fO fn @IfNh transportation at the Governments suit Such legislation is necessary because the existing interstate commerce law does not give an effective remedy in this class of cases against either shipper or carrier.
 More Legislation Needed.
 'sThe Casus Omissus-Ths interstate commerce act should now be supplement- ed by imposing 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 10 regulate commerce. Only carriers operating a line of railroad or a rail and water line as one line of railroad should be required to publish their rates and adhere to them. If prac- ticable to control lines operating wholly by water, well and good. Rates of water then, are necessarily open to the freest competition. This naturally furnishes the standard of reasonableness without ex- press regulation.
 'sIt should be made unlawful to trans port trafic by carriers subject to the interstate commerce act at less rate than the published rate and all who par ticipate in violating the law should be punished. The provision should also be made to reach corporations and combina- wuyk.g State. but whose products enter inter- state commerce. This provision should relate to combinations which fatten on rebates. to concerns which sell commodi- ties below the general price in particu- lar localities, or in any one particular locality seek to destroy competition.
 There should be a comprehensive plan to enable the government to get all the facts bearing upon the organization and practices of concerns engaged in inter- state commerce not with view to ham pering any legal business, but in order to be in position to take action in neces- sity.
 A Special Bureau.
 ''To this end commission or special bureau in the Department of Commerce should be created. whose duty it should be to investigate the operations of con-
 
 commerce to gather information and data enabling 1t to make recommendations for additional legislation, to report to the President.
 ''This will be a first step in securing a proper publicity. This commission should have authority to inquire into the management of any concern doing an in- terestate business and whenever it be- comes necessary 1t should have authority to call for reports from them; to compel testimony from all witnesses by the pro- duction of books, papers, etc
 These reasons are based on the central thought that the first step should be taken by a law aimed at what are cer- 1ainly known to be unreasonable practices directly restrictive of freedom of com merce and by law securing some gov- ernmental supervision as outlined above, 4 special act should be passed at once to speed the final decision. of cases pend ing or to be raised under the present anti. trust law, providing for the hearing of sasaah anaaa bu a l1fI hannA aa nf-n..ts