Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-01-07
KNOX ON TRUSTS.
The Attorney General Sends
a Long Letter
Embodying His Views, in Answer to
Messrs. Hoar and Litt|efeId.
A Full and Comprehensive View of
Present Situation.

tSH1iSton, JAN. O-<AttOrney GeH-
eral Knox has addressed identical let
tiers to Senator Hoar, chairman of the
Senate Judiciary committee. and Rep
lresentative Littlefield, chairman of the
sub committee of the House Judiciary
committee, giving his views.on the sub
ject of trusts. These letters are re-
| ply to communications to him from
Senator Hoar and Mr.. Littlefield, ask
ing his views. The letters embrace the
questions which have been decided by
| the courts. the questions which are
pending in the. courts and suggestions
respecting further legislation. Under
the last head. Mr.. Knox says:
I'm view of the wide experience of
the committee in dealing executively
with legal and economic questions,
venture upon the line of suggestion
with much hesitation and feeling that
the utmost the committee desires in
this respect is that some concrete
thing be set down that may be consid-
Tered with other views that may be pre-
sented as to what might be done with
in the short period allowed for con-
sideration during the life of this pres
ent Congress.
Il think proper enough to briefly pre-
fact such suggestions as I shall make
for immediate action by a statement
of some of the reasons upon which they
are based.
THE end desired by the overwhem-
ing majority of the people of all sec
lions of the country is that combina-
tons of capital should be regulated and
not destroyed and measures should be
taken to correct the tendency toward
monopolzation of the industrial BUSH
ness of the country. 1 assume a thing
to be avoided. even by suggestion, is
legislation regulating the business in
terests of the country beyond such as
as will accomplish this end.
I'm my Judgment a monopoly in any
industry will be impossible in this
country. where money is abundant ana
cheap and in the hands or within the
reach of keen and capable men if COM
petition We're assured of a fair and
open field and protected against unfair,
artificial and discriminating practices.
Two or more persons or corporations
cannot by any combination or arrange
ment between themselves either con-
tract or expand the rights of others to
engage in a similar business. The ut
most they can do is to discourage the
disposition to do so by restricting the
opportunities or by securing to them
selves some exclusive facilities or the
employment of some common facilities
upon exclusive terms.
III the law will guarantee to the
smaller producer protection against
piratical 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 degree.
'Individualism in production has its
advantages as well as combination.
small individual industries do not COM
monty spring up and thrive when in the
shadow of larger ones, though enjoying
one of their supposed advantages of
control of sources of raw material, fuel
and transportation facilities, yet real
izing large profit per ton of output be-
cause of the close economies possible
through direct, personal, interested
management
Indeed it is true that the great con-
Germs whose stocks have been gathered
in by the holding companies (the real
trusts are themselves largely but ag-
greSations of successful smaller ones,
which, one by one, have made their
competition so severely felt by an am
bilious rival that he has absorbed
them.
Il believe the rebates and kindred
advantages granted by carriers to
large operators in the leading indus
tries 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.
If substantially all of general
business is controlled by one company,
the more threatening to potential COM
petition does this iniquity become and
with greater timidity does such conf
petition approach the field.
In some respects the holding COM
pany is weaker than its independent
rivals. 1t pays as much. if not more
for labor. Advantage in the saving of
an intermediate profit upon raw ma
teTial and fuel is largely offset by the |
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