The Montgomery advertiser., 1907-08-20
SECRETARY TAFT
 DEFINES ISSUES
ac.nt.nuea srom Pase seven.l


 spiracy which may be restrained sr py toym is denounced, with siml- far remedies against l1s. and a monopoly of interstate uaoe oo,,1- covers the union of the cohspirtaien paien hv nanies into one company Whien, owning all the plant or neaIiy @ an. 'n at niant engaged Tn the manulactuIe ~ inc product and by use or t 1tnei S', vices. controls the prices states has not denned what monopyay s, this section of the antitrust law ID.
 UniawfaI Monopoly. .,..,lv CT conceive that 1t is not suihcionsls sa.I.s aeAned by saying that it is the com bination of large part ol hhe pa..,,9 pa@n,S In the country engaged m lne n,1 . facture of g particular prouuc, n,,,athine i le . cornoration. There must be somethiitig cpe tban tha mere union of capital and plant before the law IS violateo' There must be some use py 1ne com. com pany of the. compaTatWeiy sea s9ant sios os ,tnIft. either to coerce persons
 of it rather than of some com
 ar to coerce those who would
 fe with it. to give UP tnelr pug h t. There must. in other woros. De
 sment of duress in the conduct
 business toward the customers
 trade and it's competitors pe-
 mere aggregation of plant pe- .a an unlawful monopoly.
 is perfectly conceiYabie that m en terest of economy of production at number of plants may be le-
 ltely assembled elaia,ina unaer 1n me s,cn omn1 : Hs 1t Is either not trust, If the involves un1awfulness. or 1t is g ..s i trust, if trust merely means npany which has assembled 6 is part of the manufacturing plant
 may be, as Mir Bryan. in hls Versy with senator Beveriost that there is limit in the un'
 [ capital and plant that will eff. economy and that after that t.-.,s is reached, the increase of the p.s or the capital rather ehlarsei fisk in the management of the t sss, and is likely to increase tht
 f production rather than to di- .H b iI. If so, then, when a corpor' sf goes beyond that limit, tnere !, so for the purpose of monopo
 trade./
 must be borne in mind that in {
 ry like this, where there Is ar lous floating capital awaiting in
 .ent, the time within which com
 on by construction of new plants
 introduced into any business il
 aratively short, rarely exceeding
 r, and usually in even less tint
 that Many enterprises have
 organized on the theory that mer' gation of all or nearly all exist ,lants in a line of manufacture
 
 destroys competition. They hav' most of them gone into bankruptcy Competition in a profitable business will not be excluded by the mere az gregation of many existing plants un der one company, unless the compan! thereby effects great economy or take some illegal method to avoid competi ton and to perpetuate hold on tn business.
 Badges of Unlawful Trusts.
 "FTeQuentIy contracts have beer made with customers by which theI are required to deal exclusively witt the trust, on the threat that if ther is not this exclusive dealing, then a a time when they most need the pro duct, 1t will not be sold to them at all or only at a very high price, and on prohtbttive of profit on their part Again, the tremendous wealth and re sources of the trust are exerted t. destroy rival in particular localit! by. sela4ng at a very low price in tha neighborhood and driving him out o business, and then raising the prices This can be easily detected by tn inequality of the prices which the trus asks for the same commodity in diff ferent localities under the same condf tions. Such or like methods bring tn company within the description Of monopoly, at which the antitrust Iay is directed. I am inclined to the opin ion that the time is near at hand fo an amendment of the antitrust Iay defining in more details the evil against which 1t is aimed, makinl clearer the distinction between IavVfli agreements reasonably restrainfnl trade and those which are perniciou