The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1906-12-11
ATTORNEY GENERAL s REPORT
Litigation Carried on Against Cor
p0TaiiOns.
Work That Has Been Done by The
Judiciary in the Interpretation Of
the Sherman Antitrust Law.

fYdohlu5 tOAt n 49, 4 lie euil udA = ~
port Of the Attorney General Of the
United States was submitted to the
President. Because Of its review Of
the work that has been done by the
Federal judiciary in the interpreta-
ton Of the Sherman Antitrust law
and the Railroad Rate law, Attorney
General Moody's report takes place
as being one Of the most important
Of all departments documents Of the
year.
In dealing with the work of the
/ Judiciary in prosecuting cases under
the Sherman law, Mr.. Moody calls
attention to the fact that although
decisions Of the Supreme Court have
she'd much light upon the meaning
Of the words used in the law to ex-
press the acts prohibited, the exact
| limits of the meaning Of restraints"
| and smonopolization" have not been
ascertained clearly. Nor has it been
easy to determine under the complex
organization of business whether GER
tain transactions are made under for
| eign or interstate commerce.
The Department of Justice is
without organization for the investi-
cation of suspected offenses," says
the Attorney-Ge though the
| general appropriation for the en-
forcement OF this and laws Of like
character made by Congress in 1903
has to some extent supplied this de-
| ticiency. Nevertheless it is true, in
the main, that proceedings instituted
! by the department have had their ORR
! gin either in complaint by some in
:erested person or in the investigation
of some other department of the Gov
eminent. These reasons--the uncer-
| tainty of the meaning CT the law, it's
conflict with the tendencies of bust
ness and the insuficiency of the
means of detecting offenses-have
made its enforcement slow and diff
! cult and obedience to it's provisions
far from universal"
The report points out that in the
course of the litigation carried on
against corporations under, the en-
forcement of the Sherman law the
decisions of the Supreme Court have
made clear the following facts
/. That the law is constitutional
2. That combination of manu-
facturers to restrain or monopolize
manufacture or production which
only incidentally and indirectly af-
fected interstate commerce was not
within the prohibition of the act be-
cause not q restraint or monopoliza-
ton of interstate commerce.
8. That combination of manu-
facturers fixing prices and suppress
ing competition in the sale OF their
products in interstate commerce was
forbidden by the act.
A. That combination among
competing interstate railways by
which rates and fares are established
and maintained is forbidden by the
law, although the rates in themselves
may not be unreasonable or excessive.
Since the beginning of President
Roosevelt's administration twenty
three proceedings have been begun
under the Sherman law, says the At
torney-General, seven of which have
been concluded and sixteen are still
pending. Ten of the proceedings
were indictments and thirteen petit
tions in equity. In the seven pro-
ceedings concluded the Government
has prevailed.
Specific rulings of Importance have
been made and sustained during the
course of litigation in the several
cases mentioned, which the Attorney
General summarizes thus:
/. The suppression of competition,
which is Intentionally accomplished
by placing majority of the stock of
the competing companies in a holding
corporation, is a violation of the law
of 1890, though the arct of the hold
ing company in acquiring the stock
in exchange for its own may be law
full under the laws of the State which
created 1t.
g. Manufacturers who purchase
their raw material at places where 1t
is sent from the various States and
Territories for sale and after manu-
facture sell their product throughout
the country are in respect of their
purchases and sales engaged in In
terstate commerce.
8. Corporations deriving their
franchises from the State govern
ments exercise them in the conduct
of interstate commerce in subordina-
tion to the power of Congress to reg
ulate it and subject to the authority
! OF the National Government TO ascer-
tain whether they are observing the
national laws. Such corporations
have no constitutional privilege to re-
fuse to produce upon due and reason
able process of law the records. books
and papers relevant to such COM
merce, and such production does not
confer upon them immunity from
criminal prosecution.
Turning to the work of his depart
ment in prosecuting cases under the
recently enacted railroad rate law,
Mr.. Moody says that despite the evil
dence Of the railroad men given be-
fore the Senate committee in the
summer of 1905 to the effect that re-
batting had stopped, evidence coming
to the Department Of Justice justified
the belief that the prohibited practice
had been continued under various
DISCUSSES. AS result of the activity
shown by the department when this
information was in it's hands seventy
seven indictments have been re-
turned since October of last year.
Cause of Dear Gas.