The Washington herald., 1907-08-20
CANDIDATE Taft DISCUSSES THE ISSUES OF THE DAY

such combinations not only lower the cost
TO themselves. but are able 20 control
the market and maintain or raise the old
prices. the public derives no benefit and
IS helpless In the hands Of Il monopoly.
Antitrust Law Passed.
Fear Of the existence Of such an abuse
led to the passage Of the antitrust law.
in 1896 1t recognizes two forms in which
this evil may be maintained. One IS by
an agreement among a number Of differ
ent manufacturers Of an article for the
maintenance of the price OF the article
and the suppression of competition This
Is denounced when the contract Is in re-
straint Of interstate trade as a criminal
ofense against the United states. pun
ishable by fine and Imprisonment. and
a conspiracy which may be restrained by
injunction in civil suit The other form
is denounced, with similar remedies
against IT. as a monopoly Of interstate
trade, and covers the union Of the con-
Spring companies into one company.
which, by owning all the plant or nearly
all the plant, engaged In the manufacture
Of the product and by use Of other de-
vices, controls the prices. The Supreme
Court Of the United States has not de-
fined what monopoly uAder this section
Of the antitrust law is
I conceive that it is not sufficiently de-
fined by saying that it Is the combination
.of a large part Of the plants in the coun-
try engaged in the manufacture OF a par
ticular product in one corporation. There
must be something more than the mere
union Of capital and plant before the law
is violated There must be some use by
the company Of the comparatively great
size OF its capital and plant and extent
Of its output, either TO coerce persons 10
buy Of it, rather than Of some competl-
tor. or to coerce those who would compete
with II, 10 give up their business. There
must, IN other words be an element OF
duress in the conduct OF its business to-
ward the customers in the trade and its
competitors before mere aggregation OF
plant becomes an unlawful monopoly.
1t Is perfectly conceivable that in the
interest Of economy Of production. a great
number of plants may be legitimately as
sembled under the ownership Of one cor
porati0n. In such a case Il Is either not
4 trust, if the term involves unlawful
ness, or it is q lawful trust. il a trust
merely means a company which has as
sembied a large part OF the manufactur-
ing plant of any product It may be. as
Mr Bryan. IN his controversy with Sen
at0r Beveridge says. that there is a limit
in the union Of capital and plant that will
effect economy. and that after that limit
is reached, the increase Of the plant or
the capital rather enlarges the risk in the
management OF the business, and is like
ly 10 increase the cost Of production
rather than TO diminish f. II so. then.
when a corporation goes beyond that limit
there is a reasonable presumption that it
IS doing so for the purpose Of monOpoliz-
ing trade.
Competition Not Difficult.
1t must be borne in mind that In a
country Ike this. where there is an enor-
nous floating capital awaiting invest
ment. the time within which competition
by construction Of new plants can be in
troduced into any business IS compare
lively short, rarely exceeding a year. and
usually in even less time than that Many
enterprises have been organized on the
theory that mere aggregation OF all OF
nearly ali existing plants in a lire Of man
ufacture. without regard 10 economy Of
production. destroys competition. They
have most Of them gone into bankrupt cy.
Competition in e profitable business viii
not be excluded by the mere aggregation
Of many existing plants under one com
pany. unless the company thereby effects
great economy or takes some illegal
method 70 avoid competition and to per-
petuate hold on the business.
Frequently contracts have been made
with customers by which they are re-
Quired 10 deal exclusively with the trust.
on the threat that If there IS not this *
elusive dealing. then at a time when they
most need the product. il VIII not be sold
TO them at all, OF only at a very high
price. and one prohibitive OF profit on
their part Again, the tremendous wealth
and resources Of the trust are exerted TO
destroy a rival IN a particular locality by
selling at a very low price in that neigh
bOrhood and driving him out Of business.
and then raising the prices. This can be
easily detected by the inequality Of the
prices which the trust asks for the same
commodity in different localities. under
the same conditions. such. OF like methods
brings the company within the descrip-
ton Of monopoly. az which the anti
trust law Is directed
I am inclined 10 the opinion that the
time is near at hand for an amendment
Of the antitrust law defining in more de-
tail the evils against which Il IS aimed,