New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-26

POINTED OUT BY DAWES.
Er-Controller Says It's Provisions
Dire Too Indefinite.

Milwaukee, July 25.-An address was made
before the convention of the Wisconsin Bankers
Association to-day by Charles G. Dawes, Of
Chicago, ex-ControIer of the Currency, on The
Defects of the Sherman Antitrust Law" Mr..
Dawes said in part:
The trouble with the Sherman antitrust law is
that 1t makes criminal agreement in re-
strant of trade which is inherently innocent,
which may be for the benefit of the public, which
may be simply for the purpose of preserving nat
ural rights. which may be at any not in
furious the public. Take, for instance, agree
ment among competitors 10 compete only upon pure
goods as distinguished from adulterated goods, I'M
QUestonRbly in the interest of the public, and yet
1t is criminal under the Sherman antitrust law
as criminal as an agreement among competitors
70 combine Ior tne purpose OF eNIortlIIs an
reasonable price. Take an agreement among man
ufacturers TO preserve high standards in manu-
factured articles. That agreement is criminal
under the law. Take agreement among com
petitors perishable goods designed to prevent
an oversupply At a particular point or peils-lapIe
commodities like meat and fruit. where II they
were allowed TO accumulate loss of wealth would
be tho result which Is injurious both the pro-
Queer and the community. Such agreements as
that criminal under the law.
The point l wish make Is that there are two
kinds of agreements in restraint of trade, those
which are beneficial to the public as well as those
which are injurious. An agreement in restraint
of trade not sell below cost is not Of necessity
a disadvantage and Of injury to a community for
certainly have heard a great deal recently
about great institutions undertaking for period
or time IN certain Localities, selling below cost for
the purpose of crushing out competition in order
that they may later exercise a monopoly and raise
the price. A great many of these agreements In
restraint of trade the purpose Of existence
not Of eXtOrtion Of letting a reasonable amount
of competition exist Under the laws of trade and
commerce have them to-day, competition is
running riot in this country, we hear all
the country criticism OF the kind of competition
that these great institutions are giving Cf
inc smaller institutions Of this country And yet
anything the part Of the small institutions des-
tined TO prevent that kind of crushing out competi
non which is building up the true monopolles Of
the United States Is guilty under the Sherman
antitrust law, is as criminal rs any other kind Of
an agreement designed to extort from and injure
the people of the United States
Tho Sherman antitrust law makes criminal in
these general terms any agreement in restraint OF
trade in the United States or with foreign nations
Now, II is indefinite in its description OF a crime
and. being indefinite in It's description OF a crime
the business community is IN doubt as to what Is
criminal Now. when II IS In doubt 5 TO what Is
criminal. when the nature Of the crime is not fixed
IN the minds Of the business community. the scrnp
ulous man refrains from action and the unscr,;pl!-
suit IS that the Sherman antitrust law to-day dis
eliminates against purely useful. beneficial agree
directly encourages injurious agreements in re-
stralnt Of trade. The very effect Of that law has
been 70 encourage the more rapid crushing out ~
competition in this country.
II real progress is TO be made toward the solu-
ton Of the vexed Industrial problems which con-
front the nation this law should be amended so
as 70 clearly define what shall constitute illegally
in trade agreements. In addition, II should be
amended so that trade agreement whether an
agreement in restraint OF trade or not. may prior
10 its contamination. be considered by n commits
sion in its relations 10 the public interest Bene-
fetal trade agreements should then be legally sus-
tanned and Endorsed, and bad ones forbidden, and
II consummated punished.
Regarding asset currency and general reforms
IN the currency Of the United States. the con-
vention went on record as opposing the recon-
nendations OF the committee on currency 81 the
American Bankers Association although the
resolution as adopted favors some well secured
method which would improve the system as az
present in Another resolution adopted
pledged support 70 the American Bankers As
sociation's efforts in endeavoring to force ex-
press companies ont Of the banking business"