Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1908-11-16
HARD BLOW TO
TOBACCO TRUST
opens Door to Competition in All
Lines Controlled by Trusts

NEW YORK. Nov. i5-The sweep
ing character Of the recent decision
of the United States circuit court in
declaring the American Tobacco
company to be a combination in re-
straint Of trade IL attracting wide
spread attention in business circles
and among members OF the legal
profession, who have given special
attention to the trust question. not
so much for its immediate effect on
the allied tobacco interests, but more
particularly for its scope and effect
upon all classes Of Industrial combi-
nations engaged in interstate trade.
An appeal from this decision to
the United States supreme court Is
now in active preparation and pro-
cess by counsel in the case.
There has been a series Of judi
cial interpretations of the Sherman
act, both in the federal court and in
the United States supreme court, but
the consensus Of opinion Is that the
recent decision in the tobacco case
gives defniteness and scope Of In
depreciation far beyond any judicial
utterances heretofore made.
The full text Of the decision, now
available, covering "A large printed
pages, shows the far-reaching nature
Of this latest exposition Of the law.
1t also dlscloses in the language OF
the judges. the gradual development
Of judicial Interpretation OF the law
up to the present time, Judge Cox,
one Of the concurring judges, stat
ing that "since the knight case
against the sugar reflnerIes) the
tendency has been constantly toward
a wider scope Of the statutes"
Free Play to Competition.
Judge Lacombe in his majority
opinion defines the statutes Of the
law today as follows:
"Disregarding various dicta and
following the several propositions
which have been approve by success
sive majority decisions Of the su-
preme court, this language (sher-
man act) is to be construed as pro-
hibiting any contract or combination
whose direct effect is to prevent the
free play OF competition and thus
tend to deprive the country Of the
services OF any number Of independ-
emit dealers, however small. As
thus construed the statute IL reyo-
lutionary. BY this 1t IL not intended
to imply that the legislation Is in
correct. The act may be termed rev.
olutionary because. in its passage,
the court had recognised q restraint
Of trade, which was. held not to be
unfair, but permissible. although It
operated in some measures to re
strain competition.
by insensible degrees, under the
operation OF many causes, business,
manufacturing and trading alike.
has more and more developed ten
dency toward larger and larger as
gregations Of capital and more ex-
tensive combinations Of individual
enterprise. 1t is contended that un-
der existing conditions in that way
only can production be increased and
cheapened, new markets opened and
developed, stability In reasonable
prices secured and Industrial pro-
gress assured. But every aggrega-
ton Of individuals or corporations
formerly independent Immediately
upon its formation terminates an ex-
isting competition, whether or moi
some other competition may subse'
quently arise.
size Not Made the Test.
'sThe act as above construed pro
/ hfbits every contract or combine u
restraint Of competition. Size IL no
made the test: the two individual
who have been driving rival express
wagons between villages in two con
tiguous states who enter into . com
bine to join forces and operate n sin
gle line restrain an existing eOmpe
tition and It would seem to make lit
lie difference whether they make
such combine more effective By form
inE q partnership or not.
what benefits may have come
from this combine or from other
eomplaIned Of 1t Is not material Il
snauira. nor need subsequent buai