Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-04-22
THE MERGER DECISION
A Healthful Development of
the Courts.
Mr.. BABCOCK'S VIEWS
RESTRICTIONS MUST BE PUT ON
TENDENCY TO CONSOLIDATE.
Nothing in Opinion to Cause Injury to
Proper Expansion Of Ameri-
can Industries.
Mr.. BABCOCK'S VIEWS

Representative Babcock of Wisconsin.
chairman Of the republican congressional
campaign committee, sees decided benefit
not only to the country, but to the COM
binations themselves, in the recent decision
of the court of appeals in the Northern
Securities Company case.
IF this decision is confirmed by the Su-
preme Court of the United States, as seems
probable" he declared to a Star reporter
today, lit means that while the country is
advancing commercially and industria,ly,
the courts are keeping progress with that
growth.
"There Is no one who will argue that the
laws and decisions of our courts in years
gone by must be maintained without pro-
gress in face of the development and
changing conditions of the country during
that time. When this is taken into ac-
count the decision Of the court In the
Northern Securities case must impress the
student of national events as a step in the
right direction. 1t is a broad hint to the
inanciers of the country, by which they
will doubtless shape their future course.
1t does not mean that legitimate cOmbina-
tfons of capital cannot be made, but it
does mean that where the sole purpose of
the combination is to make money in ways
outside of the legitimate business of the
properties combined that 1t is illegal and
A Healthful Development.
This is healthful development 1t was
necessary. that some restrictions and
bounds should be placed On the tendency
to consolidate everything, and this deci-
sion is the first step in the right direc-
ton.
1T would only have been matter of a
very short time until all Of the steamship
Ey,nc Inxy hoo. h,1,, ,~rt,k
management for the purpose of controlling
traffic and eliminating healthful competi-
ton. AS l understand the decision, this
steamship merger will not be allowable in
the face of the recent decision. Undoubt-
edly there are other phases of the law for
the regulation Of interstate commerce
which have not been touched by the pres
ent decision, but which may be called into
operation should an attempt be made to
reach the merger idea in some other form.
II can see nothing in the decision which
when its effect is fully demonstrated will
cause any injury whatever to the proper
development of American industries In any
way, but, on the otner hand, it strikes me
as proper restriction to be placed at this
time on the seemingly prevalent idea of
combining for the purpose of making
money simply through the process Of COM
bination to control and eliminate compe-
tition."
Representative Babeock reached Wash
ington from Atlantic City yesterday after
ington during April. He will then go to
his home in Wisconsin, where he contem-
plates spending the summer months.
No Part in Post Office Investigation.
Before leaving Atlantic City yesterday
Mr.. Babcock had the pleasure Of reading
in the morning papers that he was in
Washington and had just had a lengthy
conference with Postmaster General Payne
of his state for the purpose OF persuading
the Postmaster General from carrying for
ward the present post office investigation
Il went to the Post Office Department on
my arrival in the city yesterday after
noon. said Mr.. Babcock. Just as about
twenty newspaper men were having
a conference with Mr.. Payne. I heard
what he said to the newspaper men
on the subject, but did not have any
conference with him beyond that. 1 had
not seen Mr.. Payne since his southern
trip, and simply called to pay my respects
AS matter of fact, 1 am not interested
personally in the post Office investigation
l nave no constituents in the office and
nave not followed the course of the trouble
However. If there is no more truth in the
stories that are being printed than there
was In the statement that had seen the
Postmaster General on the day previous to
my arrival In the city, for the purpose of
calling him off, think there need be- no
concern felt as to the outcome"