The San Francisco call., 1903-01-09


ulation OF trusts has been carefully prepared
- The Senator himself has given the subject long
consideration, and. moreover. has consulted with
other students OF the question including Attorney
General Knox. Ever since 1t was announced that the
Senator would present such bill its appearance has
been eagerly awaited Il has been submitted
the Senate, and 1t is safe say that those who
expected most OF it greatly disappointed.
The bill serves to show more plainly than ever how
difficult II viii be 20 frame legislation which will
reach the evils OF the trust system without interer-
ing with legitimate business. Senator Hoar is not
radical is he inexperienced legislator. He
has OF course done his best TO devise his act OF regu
lation in such Z manner as TO render il effective for
good and incapable OF harm. In Introducing to the
Senate he said: The bill which | have prepared is
] believe. conservative and moderate Ii will work
no serious injury any lawful and honorable bust
ness. Indeed, ! have taken pains to put into the
law a provision that the Attorney General may in
ms discretion refrain from proceeding to obtain
decree which will absolutely prevent the continuance
oi btsness by an association against which any civil
proceeding may be instituted il in his judgment the
interruption OF business will cause serious public loss
or inconvenience"
That statement, intended by the Senator to reas-
sure the business interests OF the country will in it
sell give rise anxiety Tor since the Attorney Gen
eral is to have the option OF deciding when and
against whom the law shall be enforced with the right
refrain from action when he deems advisable it is
clear that the passage OF the act would place the
larger corporations OF the country not under the reg
ulaon OF the law but the regulation of the Attorney
General
Another feature Of the bill which reveals the diff
Guilty OF dealing with the problem is found in section
(. which provides: That every person, corpora
uon, JOINT stock company or other association en-
gagged in commerce with foreign nations or among
the several States who shall enter into any contract
combination conspiracy, or who shall give any
direction authority do any act for the purpose
OF driving out of business any other person engaged
therein who for such purpose shall in the course
OF such commerce sell any article or product at less
than Its far market value less price than il is
accustomed TO demand or receive therefor in any
other place under like conditions or who shall sell
any article upon condition, undertaking
that It shall not be sold again by the purchaser or
restrain such sale by the purchaser shall be deemed
guilty OF misdemeanor, and on conviction thereof
shall be punished by a fine not exceeding $1,000. or
by imprisonment not 10 exceed one year or bv both
said punishments in the discretion OF the court"
Ii is safe 10 say that section will be well nigh i'm
possible OF enforcement. and if enforced will do
much more harm than good. Who is to determine
Mhen corporation IS Seling the products OF its
manufacture at a fair price? Who is to determine
when the reduction of the price is designed to drive
a competitor out OF business? How can corpora
ton be prevented from selling an article or product
at less price than II is accustomed to demand or
receive therefor in any other place under like con-
dtions'? How are like conditions" to be deter
mined?
Suppose one corporation by making larger pur-
chases manages get its raw materials cheaper than
rival suppose by better management it manufac-
lures them more economically; suppose by the ex-
ercse OF greater business tact it disposes OF them
more advsntageously suppose that by reason OF the
larger capital invested the members OF the corpora
ton content with smaller percentage OF profits
than the rival oompany-woud it be fair under such
circumstances to forbid the corporation to undersell
the rival? Should II continue such underselnc
would il be liable to prosecution for attempting to
drive the rival out OF busneN?
Questions OF that kind are bound 10 come IN Il the
Hoar b;li be enacted. The Attorney General in his
efforts 70 meet them viii be called upon at every
step TO discriminate between parties who have yir-
tually acted in the same way We shall have govern
ment by instead of government by law and in
the end the bin viii doubtless be found to work very
serious injury to what Senator Hoar calls lawful
and honorable business"