The sun., 1907-08-20

uko tnlb, where tneTe. 10 an enOTfuOub uOdb-
ing capital awaiting investment, the time
within which competition by construction
OF new plants can be introduced into any
business is comparatively short. rarely
exceeding a year. and usually In even less
time than that. Many enterprises have
been organized on the theory that mere ag-
gregation Of all or nearly all existing plants
in a line OF manufacture. without regard
to economy OF production, destroys COM
petition. They haves most of them gone
into bankruptcy. Competition in a profit
able business will not be excluded by
plants under one company. unless the COM
pany thereby effects great economy or
takes some illegal method to avoid competi-
tion and to perpetuate a hold on the busi-
ness.
ILLEGAL DEVICES BADGES or UNLAWFUL
TRUSTS
Frequently contracts have been made
with customers by which they are required
to deal exclusively with the trust. on the
threat that IL there is not this exclusive
dealing. then at time when they most need
the product. it will not be sold to them at
all, or only at q 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 neighborhood and driving
him out of business and then raising the
inequality OF the prices which the trust
asks for the same commodity in different
localities under the same conditions Such
OF like methods bring the company within
the description OF a monopoly, at which
the antitrust law is directed. / am inclined
to the opinion that the time In near at hand
for an amendment of the antitrust law de-
finlng in more detail the evils against which
it is aimed. making clearer the distinction
between lawful agreements reasonably
.s.4s., 10. H.. ~
nioious in their effect, and particularly de-
nouncing the various devices for monopo-
lizing trade which prosecutions and in
vestigations have shown to be used in actual
practice. The decisions OF the courts and
the experience Of executive and prosecuting
officers make the framing of such a statute
possible. 1t will have the good effect OF
making much clearer to those business
men who would obey the laws the methods
to be avoided.
SECRET REBATES MOST EFFECT TO MAINTAIN
MONOPOLY.
Another and perhaps the most effective
method in the past for an unlawful trust
to maintain itself has been to secure secret
rebates or other unlawful advantage in
transportation by threat of Withholding
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 illegal har-
vest and to drive all competitors from the
field. III by asserting complete Federal
control over the interstate railways OF the
country we can suppress secret rebates
and determinations of other kinds, we
shall have gone a long way in the SUD-
preston of the unlawful trusts.
ANSWER TO NH. BRYAN's QUESTION: WHAT
SHOULD BE DONE TO TRUSTS?
GOVERNMENT ACTION.
Mr. Bryan asks me what l would do with
the trusts. l answer that would restrain
trusts with all the efficiency of
lnJunctive process and would punish with
all the severity OF criminal prosecution
avery attempt on the part OF aggregated
capital through the illegal means | have
to suppress competition.
There has been great activity in the De-
of Commerce and Labor and in
he Department Of Justice in an effort to
investigate and restrain the continuance
Df such unlawful methods and the success
which has attended this effort in the dis
solution OF a number Of such trusts where
hey consisted OF several. companies or
united by a contract in re-
'traint OF trade has been gratifying. In
he case OF those who have made them
selves into one corporation their restraint
8 more dl lfficult. IL involves enormous
abor on the part Of the Government TO |
such a combination because the |
proof OF the gist OF the offence lies under |
ieath an almost limitless variety OF trans |
more easily reached by bill ip equity than
n a criminal prosecution and the questions |
u law arising may be more quickly settled |
When the law is declared 30 that the cor !
'oration understands exactly the limits !
ipon its action and it then pursues ia |
PREVIOUS illegal methods, nothing but
prosecution ought to be resorted to. /
Why TRUST PROMOTERS HAVE NOT BEEN
IMPRISONED
MIR. Bryan is continually asking whv
ono OF the managers OF unlawful trusts
ave not been convicted and sent to the |
l sympathize with him in |
~ wish that this may be done. because I
mink that the imprisonment OF one or two
'ould have most healthy effect through
ut the country: but even without such i'm
risonment believe that the prosecutions
'hlch are now on foot and the injunctjons
'hich have already been issued have had
marked effect on business methods Ona
eason for the small number of sentence
imprisonment in trust prosecutions ;s
nat the revelations OF unlawful trust meth |
dis and dishonesty have been chiefly made
nown in secret rebates. and, aa have AL
eady said. the Elkins act until amended
y the rate bill only prescribed fines as n
lode OF punishment in such cases,
'RiEs HESITATE TO IMPRIsoS BY THEIR
vERDICTs.
Again, il is difficult TO induce iuriea IN
onvict individuals Of a violation of IN
ntt-trust law II imprisonment is 10 follow
l the case OF the tobacco trust the Gov,
'nment declined 20 accept a plea OF guilty
y the individual defendants. offered on
'ndition that only the penalty of a fine ha
nPosed. and the result was that the iurv
q not hesitate TO stultify itself by finding
~ corporation guilty and acquitting the
dividual defendants. who had personaIiv
the acts upon which the con,
ction OF the corporation was based In |
ie early enforcement OF a statute which
axes unlawful. because Of it's evil ten
'garded as legitimate, juries are nor in
ined by their verdicts TO inprison ,ndi-
duais. The course which the Government
IA pursued OF resorting to civil procssscs
-st and clarifying the meaning Of q gen'
a. statute which needs definition, is prob