The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-01-07
- Care Must he Taken Not to Disturb
Industries, but Unlawful Combina-
tions Should he Repressed.
SPEECH BY SENATOR HoAR
ON THE EVILS OF TRUSTS AND PUB
LICITY AS REMEDY.
Address by the Venerable Senator
Vest on the "Sacred Elephant"
Known as the DingIey Law.

WASHINGTON. Jan. s-Fol!owing is an
abstract of recommendations regarding
trusts and combinations made by Attorney
General Knox, which were made public at
some length to-day The abstract was
given out at the White House tonight. 1t
represents the general attitude OF the ad-
ministration on this subject and was au-
thorized by the President:
"Pre,iminaryi
THE people do not desire the business
OF tle country to be interfered with beyond
the regulations necessary to control COM
binations where they act improperly and
TO correct any tendency toward monopoly.
In this country, where money Is cheap and
abundant and within the reach OF keen and
capable men, monopoly will be impossible
II competition Is kept free. Small enter
prfses have certain advantages over large
combinations and will live and thrive il
assured OF an open and fair field. Rebates
and discriminatory rates constitute one of
the ch1er restrictions on competition. They
unJustly swell the earnings of favored con-
Germs and. supporting a vast volume of
capital stock which represents nothing but
UNFAIR advantage over rivals, contribute
largely to the upbuilding OF monopoly.
The situation respecting transportation
determinations and the entry of independ-
ent capital into new industries has lately
been improved. 1t is now known that the
amount or capital embarked in independent,
enterprises in the past two years at least
equals the total capital of the great com
binations formed within the previous
twelve years. With assurance against pred
at0ry competition this Improvement will
continue Individual Industrial experience
with the certainty of secure employment
OF capital may be trusted to compete eff
fectively with such selfish combinations as
are not formed for sound economic reasons
but merely in order TO capitalize the coun-
try's prosperity for the benefit of their
promoters The existence of most OF these
combinations has not increased the pro-
ductive capacity of the country; they have
merely acquired the ownership of pre-exist-
ing industries.
Recommendations for Immediate
Legislation
That all discriminatory practices affect
ing interstate trade be made offenses to be
enJoined and punished Such legislation to
be directed alike against those who give
and those who receive illegal advantages,
and to cover discrimination In prices as
against competitors in particular localities
resorted to Tor the purpose Of destroying
? competition.
'In order to reach producers guilty of
these offenses who are as producers mere
ly beyond national control, a penalty should
be imposed on the interstate and foreign
transportation of goods produced by Them
and federal courts should be given power
10 restrain such 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
merce act should now be applied by jmpos-
Ing a 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 limhed TO those subject to the act to
regulate commerce. Only carriers operat-
ing line OF railroad or rail and water
line as one line required to publish
their rates and adhere to them. 1t is i'm
practicable to control lines operating
wholly by water. Rates of water transpor-
tation are necessarily open to the freest
competition, are invariably low by COM
parison. and thus naturally furnish the
standard or reasonableness without express
sIt should be made unlawful to TRANSPORT
traffic by carriers subject to the interstate
commerce act at less rate than the pub
lished rate. and all who participate in vio-
lating the law should be punished.
Provision should also be made to reach
corporations and combination which pro-
duce wholly within a State, but whose pro-
ducts enter Interstate commerce. This
provision should relate, first, to concerns
:. which fatten on rebates; second, to con-
Germs which sell commodities below the
general price in particular localities or in
any osner way In particular localities seek
There should be a comprehensive plan
to enable the government to get at all the
facts bearing upon the organization and
practices OF concerns engaged I'm inter-
state commerce. not with n view to ham,
perfng any legitimate business of such
take action IL necessary
To this end a commission or a special
bureau In the proposed department. of
commerce should be created. whose duty
II should be TO investigate the operations
OF concerns engaged in interstate or for
eign commerce. TO gather Information and
data enabling IL to make recommendations
for additional legislation to report TO the
President. This would be a first stem i'm se
curing proper publicity. This Commission
should have authority to inquire into the
management of any concern doing an inter-
state business whenever IL becomes neces-
sary or desirable and IL should have the
authority to call for reports from them
TO compel testimony from all witnesses
and by the production of books, papers.
etc.
These recommendations based on the
central thought hat the first step should
be taken by a law aimed at what are GER
tsinly known to be unreasonable practices
directly restrictive Of freedom of commerce.
and by a law securing some governmental
supervision as outlined above. A special
act should be passed at once to speed the
final decision OF cases pending or 10 be
.raised under the present antitrust law
providing for the hearing of such cases BY
a full bench or circuit judges and direct
appeal from the Circuit Courts TO the
supreme Court OF the United States
KNOX ON TRUSTS.