The Topeka state journal., 1903-04-04


rs ana tne general public These un-
Just practices had prevailed To such an
extent and for so long a time that many
OF the smaller shippers had been driven
out OF business. until practfcaIfv one
Duyef OF grain on each railway system
had been able By his Illegal advan-
ages 70 secure & monopoly on the line
with which his secret 1onpact was
made; this monopoly enabling him to
f1x the price TO both producer and con-
sufner Many of tbs great packing
mouse concerns were shown TO be IN
combination with each other and with
most of the great railway lines whereby
lLey enjoyed large secret concessions
IN rates ana thus obtained a practical
monopoly Of the fresh and cured meat
llcuSlfy OF the country These fusions-
though vlolatlVe of the statute had
prev Neite1 UTclecked for so MANY wears
that they had become intrenched in and
luterwoVen with the commercial life
OF certain large distributing localities
ailnQugn tnls was Of course at the eX-
pelse Of the vast body OF 1aW-abi5inz
hlerehants, the general public, and
particularly Of unfavored localities
Under those circun1st stances ii was q
serious problem 10 determine the wise
course TO follow in vitaiizing a law
which had in part become obsolete or
proved incapable of enforcement. OF
what the attorney general did in enforc-
ing it I shall speak later. The decisions
of the courts upon the law had betray-
ed weaknesses ard imperfections some
of them So serious as TO render abortive
efforts % apply any effective remedy
for the existing evils
HOLD POWERS N TRUST
It is clear that corporations created
for quasi public purposes clothed for
that reason with the ultimate power OF
the state to take private property
against TIE viii of the owner. ho.d
their corporate powers as carriers in
T.,T
all the public. Favoritisn in the use
of such powers, unjustly enriching some
and uujustlg imp0verishing others. dis
eliminating in favor OF some places and
against others is palpably violauve OF
plain principles Of justice Such pFac-
tiee unchecked IS hurgful in many
ways. Congress. having had its atten-
tiCu drawn TO the matter. enacted a
most important anti-rebate law, which
greatly strengthens the interstate COM
merce law This new law prohibits IN
der adequate penalties the giving and
as well the demanding or receiving Of
such preferences, and provides the pre-
ventive remedy OF injunction. The Wig
0rous administration Of this law and il
viii be enforced. VIII it is hoped af-
ford substantial remedy for certain
trust evils which have attracted public
attention and have created public IN
rest.
This law represents a noteworthy
and important advance toward just and
effective regulation of transportation l.
Moreover its passage has been supple
mented by the enactment of a law 10
expedite the hearing Of actions Of pub
lie moment under the antitrust act.
the act To regulate commerce. at the
request Of the attorney general; and
furthermore. additional funds hava
been Appropriated to be expended IN
der the direction OF the attorney gen
eraI in the enforcement OF these laws
All Of this represents great and
substantial advance in legislation But
more important even than legislation Is
the administration of the law. and
ask Your attention for q moment to the
way in which the law has been admin
istsred by the profound jur1st and fear
less public servant who now occupies
the position of attorney general, Mr..
Knox The constitution enjOins upon
the president that he shall take care
that the laws be faithfully executed,
and under this provision the attorney
general formulated q policy which was
in effect nothing but the rigid enforce
menr. By suits managed with consUTn-
mate skill and ability, both of the anti
trust law and Of the imperfect pro
visions of the act to regulate COM
merce. The first step taken was the
prosecution OF Il suits against the prIa-
ClD1E Ia-lTDEES OIL the uiAlt4e west k-~
straIning them by injunction from fur
Their violations OF either of the laws in
question
NORTHERN SECURITIES CASE
About the same time the case against
the Northern Securities company was
initiated This was corporation or
garizad under the laws of the state Of
New Jersey with a capital Of four huh-
dred million dollars, the alleged purpose
being to control the Great Northern and
the Northern Pacific railroad eompa-
MES. two parallel and competing Ens5
extending across the northern tier OF
states from the Mississippi river 10 the
Pacific ocean. Whatever the purpose
its contamination would have resulted
in the control of the two great railway
systems upon which the people Of the
northwestern states were so laFgeiy de-
pendent for their supplies and 70 ger
their products to market being praeIi-
oaitv merged into the New Jersey cor
rora1ion The proposition that these m
7erarfan- systems Of railroads should
he merged under a single control alarm
Sd the people of the states concerned
lest they be subjected TO what tneS
deemed a monopoly of interstate trans
--.,~4at5on and the suppression Of COM
netfrio7 The governors Of the states
most deeply affected held meeting 70
consider how to prevent the merger D7-
coming effective and passed Eesotd tloiA7
calling upon the national government
TO enforce the antitrust laws against
the alleged combination When these
Tezo7r,-ions we're referred to the attor-
r.s1- general for consideration and ad-
v-ice. he reported that in his opinion m
+ Northern Securities company ana rs
control Of the railroads mentioned was
4 :, -o-,hirrfor in restaint OF trade and
1zas attempting monopoly in violation
of the national antitrust law There
npon suit in equity, w hicn Is no"
T,snf3ing was begun b. the govern
/ r1ent to test the validity OF this trans
action under the Sherman laW
SECRET REBATES
~At nearly the same time the discio
s,,--ss ras1ecting the secret rebates en-
5rved ty the great packing house com
panies. coupled with the very hlsn price
- r-sar= led the attorney general 10
direct an investigation into the mer1ol. :