Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-07-08
NEW POLICY ADOPTED
Law Officers Plan to Enioin
Illegal Combinations.
WOULD ASK FOR RECEIVERS
Tobacco and Powder Trusts May Be
Arraigned First.
CONFIDENCE OF THE OFFICIALS
Believe That the Proposed Method Of
Procedure Will Be More Eff
fective Than Any Other.
WOULD ASK FOR RECEIVERS
CONFIDENCE OF THE OFFICIALS

A new and startling policy toward the
trusts violating the Sherman antitrust act
has been adopted by the Department of
Justice, and is expected to be given a trial
within a short time.
The policy was decided upon by Attorney
General Bonaparte and Milton d. Purdy
the trust expert, after careful and mature
elaboration, and there Is every promise
that it will shake the trusts as nothing be-
fore has done. If the views of the At
torney General and his chief lieutenant are
| realized, the smashing of trusts is GER
tainty in the future and theer will be more
alarm among the combinations than they
have ever felt before.
The issue of injunctions, followed by the
appointment of receivers, Is, briefly. the
step the courts will be asked to take in
dealing with the big combinations that
have ignored the Sherman antitrust law
so far, and have felt easy in the belief that
fines would be all the punishment they
might expect.
Although neither the Attorney General
nor Mr.. Purdy will confirm or deny the
reported agreement for new plan of pro-
cedure against the trusts, it is known that
the plan Is to be tried within a short time
In all probability the tobacco and powder
trusts will be the first arraigned in pro-
ceedings for injunctions, and, if these are
successful, the great Standard Oil trust
Will be attacked.
Belief of the Law Officers.
1t Is the belief of the two lawyers named
that the injunction-receiver plan will do
more to break up trusts than anything
that could be tried or any new law that
could be put upon the books. In success
full actions against the trusts up to this
time little has been accomplished The
payment of fines has had no practical eff
feet, and the trusts have simply assessed
these losses against the public and gone
on doing business as in the past throttling
competition and fixing prices to suit them
selves.
If the Department of Justice is able to
show, as 1t is confident of doing in a number
of cases soon to be fled that a combina-
ton Is doing business in clear violation of
the antitrust laws, restraining trade and
monopolizing the field, the law officers be-
lieve the courts will find it consistent with
law and justice to enjoin the trusts from
continuing business along those lines, the
violation of this injunction to be followed by
motions for the appointment of a receiver
to operate the business in harmony with
the laws of the land. This receiver, as now
believed, would operate the business of the
combination as contemplated within the
law, and when the business was proceed
ing in harmony with the statutes he would
proceed, in the regular way, to ask his dis
charge and the return of the business to
Its owners. Under the receivership the va
resume independent operations, each in
competition with the other: water in the
capital stock would be squeezed out, and
the enormous profits would be reduced to a
fair and equitable basis.
Will Start Fierce Fight.
The proposition opens up a vast field and
will undoubtedly be fought on the part of
the trusts with fierceness heretofore UNI
known. In the case Of the powder trust,
proceedings against which have been on the
eve of beginning for some time, it will be
shown to the courts that this combina ton Is
composed Of what were originally nearly
one hundred Independent and competing
concerns, but, that now there is no compe-
tlt1on, prices being fixed by one central au-
thority, and that almost anything is re-
sorted to in forcing out of business con-
Germs that try to begin business independ-
emily.
1t is the strong belief of Attorney General
Bonaparte and Mr. Purdy that the injunc-
tion-receiver process will do more than the
plans of w. ]. Bryan and others for the
imprisonment of officials of the trusts. 1t is
pointed out that the trusts would probably
be able to ind many men who would not
object to Jail sentences if well paid for
their martyrdom, and the business would
go on. as before, under new heads willing
to take chances.
In the case against Standard Oil before
Judge Lands at Chicago a test cannot be
made of the latest proposition. That case
involves violation of the rebate laws, and
the punishment prescribed for guilt is a
fine in each instance. If the Standard Oil
is made to pay fines involving millions Of
dollars it will assess the loss against con-
sumers of its product and continue be-
fore, but if it can be caught in injunction
receiver proceedings and put in the hands
of an officer of the court, evasion of the
laws would be out Of the question.
The desire Of the Department of Justice
is to bring a test Of it's new plan before
the Supreme Court. If some judge will
grant the request to be made and issue an
injunction. as it is claimed he is fully
within the law in doing, the trusts will
quickly carry the case to the higher courts.