The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-01-07
BITS TO CURB THE
RAMPANT TRUSTS
in the Smithy of Mr..
Knex's Brain.
He WRITES TWO LETTERS
And Gives Hoar and litlltfield His Ideas as to
What Should be Done TO Eliminate the
Evils in The Vast Corpor-
atoms.
(By the Associated Press.)

(By the Associated Press.)
Washington, Jan. 6.-Attorney- General
Knox has addressed identical letters to
Senator Hoar, chairman of the Senate
Judiciary Committee, and Representative
Little field, chairman of the subCom-
| mittee of the House Judiciary Committee,
giving his views on the subject Of trusts.
These letters are in reply to Mr.. Little
field, asking the views of Mr.. Knox. The
letters embrace three subjects, the ques-
| tions which have been decided by the
courts, the questions which are pending
in the courts and suggestions respecting
| further legislation.
| Under the latter head Mr.. Knox says:
''The end desired by the overwhelming
ma jority of the people Of all sections of
/ the country show that combinations of
capital should be regulated and steps
should be taken to correct the tendency
| toward monopoliZation of the Industrial
| bushes of the country. A thing to be
| avoided, even by suggestion, is legisla-
tion regulating the business of the eoun-
| try beyond a point as will accomplish
this end.
''In my judgment, a monopoly in any
industry would be impossible in this
| country where money is abundant and
| cheap and in the hands or within the
| reach of keen and capable men If COM
| petition were assured of fair and open
| field and protected against unfair, arti
| fetal and discriminating practices.
eff the law will guarantee to the
| smaller producer protection against prac-
! tical methods in competition and keep
| the highways to the market open and
| valuable to him for the same tolls
| charged to his powerful competitor, he
| will manage tc live and thrive to an
| astonishing degree.
81 believe the rebates and kindred ad-
vantages granted by carriers to large
operators in the leading industries of the
| country, as against their competitors, in
many years amounting to a sum that
would represent fair interest upon the
money invested in the business of such
| operators.
"Capitalization, in almost every case of
a holding company, represents far more
than the aggregate intrinsic value Of its
|
computing values for purposes of con-
struction has invariably been upon earn
| ing power, and rebates have frequently
swelled earnings so that enormous vol
umes of capital stock represent nothing
but unfair advantages obtained over
| rivals.
"The situation is much improved in
! respect to transportation determinations
within the last two years. This is the
result of a determination to apply exist
| ing laws in an effective way against dis
examinations; and second. to the fact
| that some of the higher minded railroad
| managers of the country have eXerted
their large influence in the direction of
| equitable dealing with the shippers of
| the territory which they serve. Whether
| it is a consequence of these, it is never
| theless stated on high authority to be a
| fact that the embarkation of new capi-
| tai in enterprises, in competition with
| the supposedly controlled industries
within the period named, equals the CAPT
| tai of the trusts. The effect of certainty
of protection against predatory competi-
tion can be safely prophesied to increase
| this figure.
| "My suggestion, therefore, is that as
| a first step in a policy to be persistently
pursued until every industry, large and
| small, in the country can be assured OF
equal rights and opportunities, and until
the tendency to monopolization of the
| important industries of the country is
| checked, all discriminatory practices af-
| fecting Interstate trade be made offenses
| to be enjoined and punished. Such legis-
| lation to be directed alike against those
| who give and those who receive the ad-
vantages thereof and to cover discrimi-
nation in prices as against competitors
| in particular localities resorted to for
the purpose of destroying competition in
| interstate and foreign as well as dis
elimination by carriers.
| Such practices are so obviously un-
| reasonable that to inhibit them would be
a measure of regulation of commerce to
| keep 1T free and unrestrained, and not to
| attempt to exercise arbitrary power.
| Such legislation to certainly reach pro-
ducers guilty of practices injurious to
national and international commerce
| should. in my judgment, take the form OF
penalizing the transportation of the
goods produced by the guilty parties, and
the Federal courts should be given power
to restrain such transportation at the
suit of the government.
'It may be said that under the act ia
regulate commerce., a shipper may be
punished for receiving rebates or special
rates less than the lawful published
rates, and that it is unnecessary to pro-
vide additional legislation in this re-
spect or to curb trusts, monopolies and
| combinations. This, however, is an
| erroneous statement"
r.
of the interstate commerce act in reach