The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1907-07-10
Government HAS
NEW METHOD To
SMASH TRUSTS
VIII Appoint Receivers for
the Monopolies Which
Disobey Laws
MERGERS ARE NAMED
Plan to Be Tested on Oil,
Tobacco, Harvester and
Powder Combines
FIRST ACTION TODAY
Federal Agents in New York
VIII Ask Court for the
Control of Company
BY Ira e. Bennett
srEcIAL pIsPArcH 10 LEE cALL.

by ira Es BGf1r1SCC
SPECIAL DISPATCH TO THE CALL
WASHINGTON. July o.-The
adoption by the department of justice
Of the policy of appointing receivers
for law breaking monopohes is re
garded as an admission by the admin
istrahon Of at least a serious doubt as
to its ability to successfully smash the
trusts and keep them down by prose
oution. The three trusts which the
department has especially in mind upon
which to test its new remedy are the
tobacco. powder and harvester trusts,
and 1t IS also hoped by the procedure
in question to circumvent whatever ef-
forts the Standard oil trust may make
to evade the federal laws.
The plan which the department OF
justice has now determined upon was
authoritatively outlined today. It has
been adopted to meet the instances by
which the trusts have taken a step in
advance Of maintaining stock monopo-
lies and have had recourse 60 the dis
posal OF the physical properties OF sub
sidiary companies to one great operat-
ing company, the subsidiary concerns
existing only in name.
AS long-as the government had &c
deal with g connection between the
holding company and subsidiary COM
panies q reasonable amount OF com
petition could be insured by cutting
that link, but in cases where the
monopoly was continued in the form
70 which the attention of the depart.
nent has now been turned an entirely
different situation was presented.
What the officials OF the department
now aim 70 DO is to have an officer o,
the court appointed to take charge o.
and break up the monopoly sustained
through the operation by one concern
OF anywhere from a score to a hundred
companies that are competitors II
name only. The first public step in thi,
direction viii be taken tomorrow II
the United States circuit court for ths
southern district OF New York. wher
a bill in equity viii be filed charging
that the American tobacco company Il
a monopoly in restraint OF trade II
this bill il will be asked that th.
court appoint a receiver to administel
the operating affairs OF the company
The same course. II is understood. vii
he followed with reference to tn.
powder trust. The two cases. however
are not identical, as in the case o.
the powder trust the dynamite an,
blasting and gun powder parts OF tha
monopoly are distributed in their con
troll in the matter Of holding com
panies. while there IS but one sucl
company in the matter OF the tobacc,
interests.
The Intention Of the government, al
outlined today. is for the receivers t.
dispose Of the interests OF the centra
operating companies proceeded agains
and to restore as nearly as possible
the original competitive basis. Whel
the receivers have done this they ar
to report to the court, which will thel
discharge them from further connec
tion with the enterprise. OF cours.
the whole Of this new policy is de
pendent on the view which may bs
taken Of the matter by the court be
fore which the application for a re-
ceiver is fled, and it is not certain
that the judges will uphold the con
tentfon Of the administration
It is admitted at the department tina
the plan is largely experimental ant
there are many phases that may cause
much difficulty in putting into prac
tice the plan which in theory is helt
TO be a substantial means OF curbine
the trusts.
President Roosevelt, Of course, ha'
gwen his Endorsement to the idea.