The Washington herald., 1907-08-20

making clearer Jue dl0lihclOH between
lawful agreements reasonably restraining
trade. and those which are pernicious in
their effect. and particularly denouncing
the various devices for monopolizing trade
which prosecutions and Investigations
have shown 10 be used in actual practice
The decisions Of the courts and the ex-
perience Of executive and prosecuting Of
hcers make the framing of such a statute
possible. It will have the good effect of
making much clearer 10 those business
men who would obey the laws the
methods to be avoided.
secret Rebates Given.
Another and perhaps the most effective
method in the past for an unlawful trust
TO maintain itself has been TO secure Sc
cret rebates or other unlawful advantage
in transportation. by threat Of withhold
ing business from the carrier This is un-
doubtedly what has enabled the Standard
oil Company and the sugar trust and
other great combinations to reap an u
legal harvest. and 10 drive all competF
tors from the field II. by asserting com
plete Federal control over the interstate
railways of the country, We can suppress
secret rebates and Determinations Of 9TH
er kinds we shall have gone a long way
in the suppression of the unlawful trusts
Mr. Bryan asks me what / would
do with the trusts. / answer that
would restrain unlawful trusts with
all the efficiency Of injunctive pro-
cess and would punish with all the
severity of criminal prosecution eV-
cry attempt on the part Of aEgre-
gated capital through the illegal
means I have described TO suppress
competition.
There has been great activity in the De-
partment of Commerce and Labor, and in
the Department Of Justice in an effort to
investigate and restrain the continuance
of such unlawful methods and the sue
cess which has attended this effort in the
dissolution of a number of such trusts
where they consisted of several compa-
nies or partnerships united by a contract
in restraint Of trade has been gratifying.
In the case of those who have made
themselves into one corporation. their re-
straint is more difficult. It involves enor-
nous labor on the part Of the govern
ment to prosecute such a combination be-
cause the proof of the gist of the Offense
lies underneath an almost lmitless va
rlety OF transactions. In the outset it
can be very much more easily reached by
biil IN equity than in a criminal prOseCu-
ton, and the questions of law arising may
be more quickly settled. When the law
Is declared so that the corporation under
stands exactly the limits upon its action.
and il then pursues its previous illegal
methods nothing but criminal prosecu-
tton ought TO be resorted 20.
should Be sent to JAN.
Mr. Bryan IS continually asking why
some Of the managers of unlawful
trusts have not been convicted and sent
10 the penitentiaty? I sympathize with
him in his wish that this may be done.
because I think that the Imprisonment OF
one or two would have a most healthy
effect throughout the country but even
without such Imprisonment. I believe that
the prosecutions which are now on foot
aad the injunctions which have already
been issued, have had a marked effect on
business methods. One reason Ior the
small number OF sentences Of imprison-
ment in trust prosecutions is that the
revelations of unlawful trust methods and
dishonesty have been chiefly made known
in secret rebates, and as have already
said the Elkins act until amended by
the rate bill. only prescribes fines as
mode Of punishment in such cases
Again, il is difficult 10 induce juries to
convict individuals of a violation of the
antitrust law. If Imprisonment is 10 fol-
low. In the case OF the tobacco trust,
the government declined TO accept a plea
Of guilty by the individual defendants.
offered on condition that only the penal
ty Of a fine be imposed, and the result
was that the jury did not hesitate TO stul-
tify itself by finding the corporation
guilty and acquitting the individual de-
PENDANTS who had personally committed
the acts upon which the conviction of the
corporation was based. In the early en-
forcement of "a statute which makes un-
lawful, because of its evil tendencies.
that which has been in the past regarded
as legitimate. Juries are not inclined by
their verdicts 10 imprisOn individuals.
The course which the government has
pursued of resorting to civil processes
first, and clarifying the meaning Of gen
eTal statute which needs definition, Is
probably the best course to pursue As
the criminal prosecutions 20 on land
many such prosecutions have now been
begunl if the violations Of the trust law
are. continued. undoubtedly some shining
marks will be hit, but the vigor with
which these prosecutions have been con-
tlnued has created an anxiety among
those engaged in doubtful enterprises that
has either driven them out Of the business
or made them careful not TO give occa-
sion for further complaint.
"Extirpate Root and Branch"
Mr.. Bryan says: He would extirpate
trusts. root and branch" II Mr.. Bryan's
language is more than mere rhetoric.
and he means to seize the property, TO
divide il up and sell it in pieces, and dis
assemble the parts, then I am not in
favor Of his method OF dealing with
trusts. because I believe that such large
combinations Iegitimately conducted
greatly add to the prosperity of the
country.
The attitude OF the government toward
combinations Of capital for the reduction
in the cost OF production should be ex-
actly the same as toward the combna-
uons Of labor for the purpose of better
ing the conditions of the wage-worker.
and Of increasing his share of the joint
profit Of capital and labor. They are
both TO be encouraged in every way as
long as they conduct themselves within
the law. They both WELD enormous DOW
er. and if welded for good. can be of
inestimable benefit.
Their power for evil when in the con-
troll Of unscrupulous men is such that if
it is 10 be restrained, it needs the use Of
all the means which the Executive and
the courts can lawfully command. l think
IT entirely possible by the rigorous prose
cutons of the law against illegal combi-
nations and by the equal and just oper-
alton Of railways, TO prevent recurrence
Of what We have had in the past and to
restrain within the hounds of lagifiroo -,