The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-09
NEUTRALITY-SUSPICIOUS.
LITIGATION CARRIED on AGAINST
CORPOR ATOMS.
work That Has Been Done by the Judiciary
I'm the interpretation OF the sherman
NntI-Trust ! NV Points Made clear by
Decisions Of the 4. =. supreme Court.

I'm the Interpretation or Inc sherman
AntI-Trust I NV Points Made clear by
Decisions Of the 4. :. supreme Court.
WASHINGTON, Dec. S.-The annual report
of the Attorney Cencral of the United
States was submitted to the President
to-day. Because of it's review Of the work
that has becu done by the Federal judiciary
in the interpretation of the Sherman anti
trust law and the railroad rate law, At
torney-Geueril MoCny'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 shed much light upon the mean
ing of the words us.d ia the law TO expires
the acts prohibited, the exact limits OF the
meaning of "restraints" and "~nonopolZa-
ton" have not becu ascertained clearly.
Nor has it Leen eary to determine under
the complex Organization Of business
whether certain transactions are made
under foreign or Interstate
The Depaftn ent Of Just .oe is without
orr anizatuon for th" investigation OF sus-
pected offences says the A~ttorney-Gen-
eral, THOUGH the general appropriation
for the enforcement of this and laws of
like character made ~ Congress in 1908
has TO sore extent supplied this deficiency.
Nevertheless il is true. IN the main, that
proceedin = instituted by the Departu ent
have had their oriEin either in a COM
plant ~ some Interested person or in the
investira alton Of SOM other Department of
the Government. These reasons-the I'M
certainty of the nearing Of the law, its con-
a. - Al - 80. - -aaAa DHI
the msu ficiency of the means Of detect
ing offences have made its enforcement
slow and difficult and Of iedenCs to its pro-
visions far from universal
The report points out that in the course
OF the Ltiration carried on against cor
porations under the enforcement of the
sherman law the decisions of the Supreme
Court have made clear the following facts:
I. That the law is constitutional
>. That a combination of manufacturers
20 restrain or mouopolize manufacture
OF production which only incidentally and
indirectly affected interstate
was not within the prohibiti)n of the act
because not a restraint OF monopolization
of interstate commerce.
3. That a combiu ton of manufacturers
fixing prices AMI expressing comTetiti)n
in the sale of their products in interstate
was forbidden by the act.
I. That "A Cym1inltiJ IN an Dng com
peting interstate railways by which rates
and fares are eStl'ri she1 and maintained
is fort !den by the law, although the rates
in themselves may not be unreasonable or
excessive.
Since the beginning Of Presi lent Roose-
Velt's admin strait ~ twenty-three proceed
ings have been begun un Ter the Sherman
law, says the AttIrney-Geueral, seven Of
which have been concluded and sixteen
are still ending. Ten of the procee iings
were Indictments ard thirteen ~etitious
in equity. In the seven I~rJcee1in gs con-
Cluded the G)verrm mt has Prevailed,
Specii c rulings &c importance have been
made and sustained during tine course #
litigation in the several cases mentioned.
which the Attorney General summarizes
thus:
1. The suppression Of competition, which
is Intentionally &C ,umplished by placing a
majority Of the stock Of the competing COM
panies in a holding corporation, is a violation
of the law Of 1880. though t,e act OF the
holding COMPANY in acquiring the stock
in exchange for IT, own NAV b. lawful under
the laws Of the State which created it.
?. Manufacturers wlo purchase their
raw material at places where il is sent
from the various states and Territories for
sale and after manufacture sell their product
throughout the country are in respect OF
their purchases and sales engaged III inter-
state
3. Corporations deriving their franchises
from the State go, ernments exercise them
in the conduct oil Interstate co nmercc in
authorization to the power OF Congress TO
regulate IL and subject to the authority |
Of the national Government to ascertain
whether they are observing the national
laws. Such corpoI atoms have no consti-
~tutionAl privilege ~ refuse to produce upon
due and reasonable process of law the
records, books aud papers relevant to such
90 nme rec, and such production does not
confer upon them Immunity from criminal
prosecution.
The i'm" ortqnce If this decision cannot
be overestiml te ~ says Mr.. Mccoy. 1t
not only Toirts out the way in which evil
celce Of violG tons of existing law may
he o t%'irel. but slso inCics ties clearly
how the ri ht of Con RESI- to re uc re com
merCe amonC the SC tes and with forei1 n
Mt tons mey I 9 eveirise' ef q tiy ely"
TurniT < 20 the work of his 81 rtuprt
In rroseC' ting cases unCeT the rec CT tiy
enscte ri ROAD T. te law, MIR. Moo6 Y says
thrt des- tie the evil ence Of the railroad
men ~ivel core the Sem te committee
IN the sumner OF 1905 to the ef ect that
reNrt'n~ had storT ell, evil cree cominC
TO the De- srtmert of Justice j st ted the
Relief thct the Irohibitei Lr'tt ce had
Kern cort,nUe unC or various dis yuises. IS
q reyilt Of the activity shown by the de-
rartme9t when this informc ton was in
its hands seve~ty-seve ind iCtTnsrts have
been ret 'rne' since NCto' or of last yepT.
Referring TO the cases arising out of these
indictments, the AttDrney-General says:
Sin the course of the recent litigation
upon the subject OF rebates there have been
rendered two decisions of far reaching
importance. They show that, howeve
the transaction may be disguised, an I'M
lawful discrimination can be reached, pro-
hibited and punished by the court"
The cases referred 20 by Mr.. MOODY were
those against the New York, New Haven
and Hartford Railroad and the Milw aukee
RefriVeratOr Transit Company, which were
decided in February and May respectively
of the present ye%r.