The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-09
More Radical Than anything
Yat Undertake. by tho
Administration.
RECEIVERS FOR BAD TRUSTS


Placing Every IAwbreskias Trust N
the Hands Of . asessve. Whe, - -
Agent Of the Court. shan Garry o.
the Business OF the Corporauep-ns
Business Of the STANDARD 81 Com.
pany May Eventually Ne Csuducted by
Receivcr n tho Movement ASsiDSs
tine Tobacco Trust sueeessfua.
WASHINGTON. July s.-A bill in equity viii
be filed by the Government next Wednesday
in the UBited States Circuit Court for the
Southern District OF New York against tho
American Tobacco Company. charging thsv
that corporation is a monopoly In restraint
OF trade in violation OF the Sherman law.
That his action will he taken GAUGES ~
surprise, for 1t has been known for some
time that the so-called tobacco trust was
under investigation. but the nature Of the
prayers to the court in this case will marx Q
startling departure in snti-trust prosscu-
tions. more radical than anything yet under
taken by the Roosevelt Admins traitor
A new policy has been adopted by the
President and the officers Of the Depart.
ment Of Justice. which aims at nothing
less than the placing Of every m~onopoistic
or lawbreaking trust In the hands Of
receiver. who as the agent Of the Federal
court shsll carry on the business OF the
corporation. This proceeding. which 10 the
latest OF the Roosevelt policies relating t.
the control Of corporations. is to havs n
trying out in the prosecution OF the tobacco
company, and II the movement succeeds
other capitslistic combinations which MAJ
be violating the avs may expect TO reesive
similar treatment.
IL 10 easily among the possibilities, ~
viewed by the officers Of the Department
Of Justice. that even the gigantic business
Of the Standard Oil Company may event
ually be taken from the hands Of its present
officers and directors and placed in charge
of a receiver II the movement against the
tobacco corporation proves successful.
The receivership plan has been very
thoroughly worked out by the lawyers OF
the Department Of Justice. among whom 10
Milton d. Purdy. assistant to the Attorney
General, who 10 believed to be the originator
Of this novel method OF dealing with the
trusts. An ~inseparable accompaniment
Of the plan, at least in the first trial which
10 about to be inauguratcd. is a petition for
injunction. The court will be asked to
grant an injunction restraining IN alleged
m~onopolstic corporation from engaging
further IN interstate commerce. and the
Government prosecutors will petition, as
an alternative. that the court appoint @
receiver to carry on the business 81 the
offending corporation.
Whatever the Federal courts moy think
Of this new plan OF campaign in the Ad
ministration's war on corporations. The
leading officers OF the Departments OF
Justice and Commerce regard il with con-
fdence and believe IL 10 be thorou ghly
sound in law.
The reoeivership plan ON es it's origin,
in part at least, to the obvious fact tha-
most of the suits thus far successfully
prosecuted Ivy the Government. have hsc
little practical effect. The Administra.
ton believes. for example. that the hrs.
great suit instituted by the Go, ernment.
namely the one against the Northerr
Securities Company. had nc tangible re.
suit in causing the railroads which forne,
the merger to become composing ihles.
Any lawyer iu the Department of Jusvcn
will admit. 10 he says What he thinks. tia
the great combinations Of capital ara .,
strictly a natural outerowth OF the times
and are so essentially subject TO the vii,
OF the men who own the property thar
il 10 impossible for any power to coinpsl
theFa in all nnaAe a.. Aiaualxa skaxaaAlD-.
into competing companies and TO allow
the small producer OF carrier tho same
advantages that they enjoy themselves.
The receivsrship plan 10 regarded by the
Administration as q method d giving 10
the prosecution Of trusts a practical sdect.
According to this plan the Government
virtually says to the corporations: -Yor
are breaking the Law. but IL 10 difficult for I .
TO make you carry on your business II.
such q way a 10 conform to the Law. IS
We will ask the court to sppoint q receive.
to carry OF your business for youth yo,..
own interest. and In the interest Of the
people"
According to the project for recsivesshirs.
the agent Of the court would be expected
to conduct the business Of the corporation
in conformity with the Sherman law snc
the other more recently Enacted statutes 70.
the regulation Of the trusts. The receive
would. in short. DO expected In the courss
Of time TO bring about q thorough dissolu-
ton OF the trust, and possibly 10 restore
its various units to the condition in which
they existed prior TO the combination In
restraint Of trade"
n. q. =. Most Pay More for the Bridge.
Commissioner Stevenson 10 preparing
a form OF contract for tbs use Of tbs Brook
lyn Bridge by the Brooklyn Rapid Trans:
Company which win provide that whsn