The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-06

with what was practioable and reasonable.
Construed literally, this statute could he
used TO punish combinations Of the most
useful character, like partnerships and
other. business arrangements conceded
BY all TO be legitimate and proper, and the
dtniculty in it, construction has been 10
draw a line effective to suppress the roal
evil aimed at bv tha legislature and to fur
ntsh n proper and clear rule for the guidance
Of business men, while not interfering with
legitimate combinations which Congress
had no purpose to prevent. IL was not to
DO expected that such a statute, dependent
as tt was. upon judicial Interpretation TO
make IL clear. could operate effectively at
cision had to be awaited before the general
purpose OF the act could be attained.
More than this, It was plain that the only
ground for Federal interference was the
commerce.. and although these trusts did
. business which was largely interstate
It was often difhcult in proof to show such
q direct relation between the making Of
TO make clear Federal Jurisdiction. And
yet the scope Of the evils was national,
and united and effective action by State
Legislatures and State Executives was
hardly to be expected. After the act was
passed in Mr.. Harrieon's administration
h first OF theee reached the Supreme
Court In Mr.. Cleveland's second term, during
the incumbency Of Mr.. 0lney az Attorney
General, and wan decided against the Gov
eminent. II was the case OF the United
States against the Z. C. knight Company,
and involved the question whether the
proceeding by which the control Of the
stock Of a number Of sugar refining COM
panies was purchased by one company
so as to unite under one management 9S
per cent. In point Of product OF all the sugar
refining enterprises Of this country was
not a violation OF the Sherman act. It
was held that the agreement denounced
in the antitrust act must be, In order
that the act mould be constitutional. an
agreement directly affecting Interstate
trade, and that the union Of manufacturing
plants merely because a part OF the products
OF the union were intended to become
part OF the interstate trade was not within
h inhibition Of the act or the power OF
Congress to control. This, 1t was then
thought by Mr.. Olney. 30 narrowed the
scope OF the act as to remit all effective
regulation and control to the state Govern
ments and prevented any hope OF useful
national action. However, under Judge
Harmon. who succeeded Mr.. Olney "a
Attoruey-G General, two decisions were Sc
cured in the Supreme Court which applied
the antitrust act to agreements between
railroads in restraint OF competition be-
tween them. It was contended in these
cases that railroads were not included in
the operation OF the antitrust act, but
the Supreme Court held otherwise when
they were interstate railroads. Another
decision was obtained in the lower courts
during Mr.. Cleveland's administration in
the Addyston Pipe case, in which contracts
or agreements between firms in different
States seeking to control a large part OF
the business lone in cast iron pipe within
a number Of States were held to be in viola
ton Of the act. This was subsequently,
affirmed in the Supreme Court. IN Mr..
McKinley's administration, while Of course
the attention n energy Of the public and
the Government were necessarily and
largely absorbed in the Spanish war and
the responsibilities which followed IL,
the work Of securing a practical judicial
construction Of the trust act proceeded.
Mr.. Roosevelt, as President, from the
very first, devoted his great energies to
suppressing the trust evil and the abuses
Of organized capital. Early in his first adj
ministration a case arose, the decision Of
which was the most important step taken
In the development Of prosecutions under
the trust act. That case was known as
the Northern Securities case. It presented
the question whether the owners OF the
Great Northern road and the Northern
Pacific road might unite the TWO properties
to prevent the competition between them
by organizing together a holding company
under the laws Of New Jersey, which should
hold the stock in both companies and prac-
tically manage the two roads az one. The
Supreme Court decided that the corporate
cloak TO the union constituted a contract
in restraint OF interstate trade, and that
the court was justified in looking through
the fiction Of the holding company, though
organized under the laws OF New Jersey,
TO determine what the actual purpose and
effect were. There we're seven original
proceedings for violation OF the antitrust
act begun and prosecuted under Mr.. Har-
rison. six under Mr.. Cleveland n three
under Mr.. Mckinley. There have been
sixteen thus far under Mi. Roosevelt.
DIFFICULTIES IN ENFORCING THE TRUST ACT.
The course OF proceeding under the
antitrust act had developed many diff
culties in its practical use Tor the suppress
sion Of the abuses aimed at. The offences
which it denounced were rarely committed
In the light OF day, and could only be estab-
liahed by the proof of secret agreements
which it is most difficult to secure. The
difficulty arose in great measure because
those who knew the circumstances, from
having taken part in such agreements,
refused. under their constitutional i'm
munity, to give evidence which Nigh crimi-
nate themselves. This called for legisla-
ton which required witnesses to testify
in legal proceedings under such acts and
avoided the pleading of their constitutional
privilege by exemption from prosecution.
In order to prevent too great immunity
under such legislation, which would defeat
useful prosecutions, an amending statute
has peer deemed necessary and has been
passed by the present Congress. special
acts for appointment Of new prosecuting
officers and appropriating large amounts
TO carry on the prosecutions have been
found necessary. Then the question has
arisen: Can a corporation plead a con-
stitutional privilege Of declining to answer
questions which might criminate the cor
poration by showing it's books and papers'
In the prosecution OF the tobacco trust,
in the present administration, that question
has been answered by the Supreme Court
in the negative, and this has opened to the
Government a means Of compelling evil
dence which until the recent decision was
denied II.
Again in 1908, under the first ADMINISTERS
ton OF Mr.. Roosevelt, the bureau OF COR
porations, In the Department OF Commerce
and Labor, wal created. 1t was directed
and given pow to investigate the opera
lions Of corporations engaged in inter
state trade other than railways. This
bureau under its most active chief, Mr..
Garfield, has instituted Investigations which
have brought to the attention OF the
Department Of Justice the existence Of
violations OF The interstate commerce act
and OF the antitrust act, which make sue