Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-07-09
NEW MOVE ON TRUSTS
Government Will Ask Appointment Of
Receivers to Take Over Business.

Washington, July "a new method
Of attacking the trusts, which may
prove to be the most effective weapon
been decided upon by the department.
of justice Unable to break up trusts,
which, when convicted, merely have
paid fines and continued as before, the
government will ask for the appoint
Elent of receivers to take over the en-
tire business Of the combines. II this
is done the trusts will be dissolved, the
water squeezed out Of the stocks and
the enormous profits reduced under the
Girect charge of the government.
1t is proposed to continue the busi-
MT IS of the great corporations in a way
vnlch will protect the stockholders and
at the. same time dissolve the trusts
Into independent companies, which will
c ,nlpete for business as they did be-
fore the mergers.
This method probably will be tried
in the case of the tobacco combine, and
also, it is expected against the powder
combine. Assistant Attorney General
Eurdy. who has charge Of the trust
prosecutions, has decided upon this
plan of action, after discussing the
ma tier with the attorney general.
It las been fou,id tfat while the
shern2n anti-trus~ laEs was sufficient
ly strchg in prosecutions brought
against the combinations and the gov
ernment experienced nc great difficulty
in secu:ing judgment, the results OBJ
ta:ned hay- no. beer ut all satisfac-
tory. The prosecutions to date have
rnt in, Of 10
trusts that have been attacked.
Officials of the department of JUS
tice are loath to discuss their purposes
in advance of an open move in court
because Of the danger Of embarrassing
the governments cases but 1t is known
that the decision has been reached to
ask the courts in some early case for
an injunction restraining the trust to
be attacked from violating the law. 1t
is not expected that the injunction will
have any more material effect upon
the methods OF the trust than has the
prosecution to date. Then after show
ing the court that the trust has not re-
spected and compiled with the injunc-
ton, the government will move the ap-
pointment of receiver to operate the
business of the trust as contemplated
within the law.
When the business was proceeding in
harmony with the statutes he would
proceed, in the regular way, to ask his
discharge and the return Of the busi-
ness to its owners. Competition of the
Independent companies thus would be
restored, the water in the capital stock
would be squeezed out and the euor-
nous profits would be reduced to fair
basis One result would be lower prices
for consumers.
The proposition opens up vast field
and undoubtedly will be fought on the
part Of the trusts with a ferceness
heretofore unknown. In the cases Of
the powder combine. proceedings
gainst which have been on the eve
of beginning for some time, it will be
shown to the courts that this combin-
alton is composed of what were orig
inally nearly 100 Independent and COM
pating concerns, but that now there is
no competition. prices being fixed by
one central authority, and that almost
OF business concerns that try to begin
business independently.
1t is the strong belief of Attorney
General Bonaparte and Mr.. Purdy that
the injunction receiver process will do
more than the Imprisonment of officials
of the truste. 1t is pointed out that the
combines probably would be able to
find many men who would not object to
3ail sentence Il well paid for their