Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-01-07
TO PREVENT REBATES
ATTORNEY GENERAL AIMS TO
KEEP COMPETITION FREE.
Abstract Of His Views Given Out at
the White House and Endorsed
by the Administration.

At the White House last night an alb
stract of Attorney General Knox's recon-
mendations to Congress regarding trusts
was given out, with the announcement that
the recommendations represent the views
of the administration on the trust question.
In other words President Roosevelt is back
of the views expressed by Attorney Cen
eral Knox and earnestly desires that these
views shall be Incorporated into law and be
enforced as such. The abstract, which fol-
lows, was authorized by the President:
Preliminary.
The people do not desire the business Of
the country to be interfered with beyond
the regulation necessary to control combt-
nations 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
IL competition Is kept free
Small enterprises have certain advantages
over large combinations, and will live and
thrive If assured of an open and fair field.
one of the chief restrictions on competition.
They unjuStly swell the earnings of Ia
vored concerns and supporting vast vol
ume OF capital stock which represents MOTH
ing but unfair advantage over rivals, con-
tribute largely to the upouilding Of monop-
oily.
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 of capital embarked in Independent
enterprises in the past two years at least
equals the total capital of the great combi-
nations formed within the previous twelve
years. Individual industrial experience,
with the certainty Of secure employment Of
- No nj
lively with such selfish combinations as are
not formed for sound economic reasons, but
merely in order to capitalize the country's
prosperity for the benefit of their pro-
combinations has not increased the pro-
ductive capacity Of the country; they have
merely acquired the ownership of pre-exist-
ing industries.
Recommendations.
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 re-
ceive Illegal advantages, and to cover dis
elimination in prices as against competitors
in particular localities resorted to for the
purpose of destroying competition.
In order to reach producers guilty OF these
offenses who are as producers merely be-
yond national control a penalty should be
transportation of goods produced by them,
and federal courts should be given power to
restrain such transportation at the govern
ments suit.
existing interstate commerce law does not
give an effective remedy in this class Of
cases against either shipper or carrier.
The casus omissus in the interstate COM
merce act should now be supplied by i'm
posing penalty upon carrier and bene-
ficiary alike, and by giving to the courts
the right to restrain all such 'infractions Of
the law.
be limited to those subject to the act to
regulate commerce. Only carriers operating
line Of railroad or rail and water line
as one line are required to publish their
rates and adhere to them. 1t Is imprac-
ticable to control lines operating wholly by
water. Rates of water transportation are
necessarily open to the freest competition,
are invariably low by comparison, and thus
naturally furnish the standard of reson-
ableness without express regulation.
It 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 combinations which pro-
duce wholly within a state, but whose
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 other way in particular localities seek
to destroy competition.
There should be comprehensive plan to
enable the government to get at all the
facts bearing upon the organization and
practices of concerns engaged in interstate
commerce, not with view to hamperng
any legitimate business Of such concerns.
but in order to be in position to take &C
ton II necessary.
To this end a commission or a special
bureau in the proposed department Of COM
mence should be created, whose duty it
should be to investigate the operations
Of concerns engaged in interstate or for
eign commerce, to gather information and
data enabling 1t to make recommendations
for additional legislation to report to the
step in securing proper publicity.
This commission should have au-
thority to inquire into the management
Of any concern doing interstate bust
ness whenever it becomes necessary or de-
sirable; 1t sould have the authority to call
from all witnesses and the production Of
books, papers, etc.
These recommendations are based on the
central thought that the first step should
be taken by a law aimed at what are GER
tainly known to be unreasonable practices
directly restrictive Of freedom of COM
merce, and by a law securing some gov
ornamental supervision, as outlined above.
A special act should be passed at once to
speed the final decision of cases pending
or to be raised under the present anti
trust law. providing for the hearing of
such cases by a full bench Of circuit judges
and for a direct appeal from the circuit
courts to the Supreme Court Of the United
States.