The county record. [volume] (Kingstree, S.C.) 1885-1975, 1903-01-15
KNOX And TRUSTS
The Attorney General Gives Out His
Views
WRITES HOAR AND LITTLEFIELD
The Determination of the Govern.
ment to Prevent Discrimination Is
Bearing Fruit.

Attorney IeueTdl hHoA uas duui COO
ed identical letters to Senator Hoar,
chairman Of the Senate judiciary COM
mittee, and Representative Littlefeid,
chairman of the subcommittee of the
House judiciary committee, giving his
views OH the subject Of trusts. These
letters are in reply to Mr.. Littledeld,
asking the views of Mr.. Knox. The
letters. embrace three subjects, the
questions which have been decided by
the court, the questions which are
pending in the courts aud 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
tions Of the country Is that combina-
tions of capital should be regulated
and not destroyed. and that measures
should be taken to correct the tenden-
cy toward monopollzation of the in
dustrial business Of the country. as
sumo thing to be avoided, even By
suggestion. is regulating the business
interests of the country beyond such
as will accomplish this end. In 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, il competition
were assured of fair and open field
and protected against unfair, artificial
and discriminating practices. If the law
will guarantee to the smaller producer
protection against practical methods
in competition and 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 de-
gree.
81 believe the rebates and kindred
advantages granted by carriers to en-
large operators in the leading industry
and Of the country as against their
competitors in many years amounted
to sum that would represent fair in
terest upon the actual money invested
in the business Of such operators. Capt.
talization, in almost every case of
holding company, represents far more
than the aggregate rebate in intrinsic
value of its constituent companies. The
method of computing values for pur-
poses of concentration has invariably
been upon earning power, and rebates
have frequently swelled earnings SC
! that enormous volumes Of capital stock
represent nothing but unfair adyant-
age obtained ever rivals.
"Thc situation is much improved in
respect to transportation discrimina-
tions within the last two years. This
is the result. first Of determined ef-
fort upon the part OF the government
TO apply existing laws In an effective
| way against Determinations; and sec
ond, to the fact that some Of the higher
minded have eXerted their large influ-
ence in the direction of equitable deal
ing with the shippers of the territory
which they serve. Whether it is con-
sequence Of these influences or a mere
coincidence. il. is nevertheless stated on
high authority to be fact that the
embarkation of new capital in enter
3rises in competition with the suppos-
| edly controlled Industries within the
period named probably equals the cap
| ital of the trusts. The effect OF Ger
tainty of protection against predatory
competition can be safely propheSied
! to increase these figures.
my suggestion. therefore. is that as
first step in a policy to be persist
emily pursued until every industry
large and small. in the country can be
assured OF equal rights and opportuni-
i ties and until the tendency to monopo-
! iization of the important industries OF
the country Is checked. that all dis
| criminatory practices affecting inter-
State trade be made offenses to be en-
| joined and punished, such legislation
| to be directed alike against those who
| give and those who receive the adTan-
| tages thereof and to cover d'scrimina-
tion in prices as against competitors
| In particular localities resorted to for
| the purpose of destroying competition
| IN inter- State and foreign trade as we'll
as discrimination by carriers. Such
! practices are so obviously unreasonable
| that to inhibit would be a measure or
regulation of commerce to keep 1t free
and unrestrained and not al attempt
| to exercise arbitratory powers.
Such legislation to certainly reach
producers guilty of practices Injurious
| to national and international COM
merce, should, in my judgment take
the form of penalizing the transporta-
ton of the goods produced by the
guilty parties and the Federal Coarts
should be given power to restrain such
| transportation at the suit of the gov
ernment. 1t may be said that under the
| act to regulate commerce, shipper
may be punished for receiving rebates
| or special rates less than the la"!W
published rates, and that it is unnecHs-
sary to provide additional legislation
in this respect to curb trusts, monopo-
-