The morning journal-courier., 1908-11-16
ecent Opinion of Circuit Court of Wide Effect on All Classes of Industrial Com
 binations.
EFINES SCOPE OF LAW
Ives q Dcfnitcness of Interpretation Far Beyond Any Judicial Ut- terances Heretofore
 Made.

New York Nov. 1b.--The sweeping INaracter of the recent decision of the I nited States circuit court In declar- g the American Tobacco company to a combination in restraint of trade, attracting widespread attention in isiness circles and among members of 0 legal profession who have given pecal attention to the trust question, ot so much for its immediate effect on allied tobacco interests, but more rticularly for It's scope and effect pon all classes of industrial combina- ons engaged In Interstate traffic. An >peal of this decision to the United ates Supreme court Is now In active ocess of preparation by counsel in ,e case
 There has been series of judicial in- rpretations Of the Sherman act, both the federal circuit and in the United ates Supreme court, but the concen- g of opinion is that the recent decl- pn in the tobacco case gives defn- eness and scope Of Interpretation far yond any judicial utterances hereto re made. The full text of the deci- pn, now available, covering A large 'lnted pages, shows the far-reaching Cture of this latest exposition of the w. It also disoloses. In the language the judges the gradual development judicial Interpretation of the law up the present time, Judge Coxe, one of c concurring judges, stating that ince the Knight case (against the gar retlnerles) the tendency has been instantly towards a wider scope of the ,atutes."
 The Knight case was the first under e Sherman act 10 reach the Supreme urt. It was decided in January, oo, and held in substance that the mblnatlon of number of refnerles manufacture sugar was not within e act, because manufacture alone not commerce, and therefore not fthin the control of congress. An samination of the numerous decisions nee the Knight case leads 10 the con- 'usion, Judge Coxe says, that there as been a general tendency towards a 'oader and more liberal construction the statutes. In the Northern Se- trities case, the opinion reviews all of e prior decisions and formulates cer- In propositions Some of these were follows
 "The antitrust net embraces and de- ares to be illegal every contract com nation or conspiracy in whatever rm, of whatever nature and whoever ay bo the parties 10 It. which direct or necessarily operates in restraint interstate or international trade or mmerce. The act Is not limited to lreasonable restraints, but embraces II direct restraints.
 The natural effect of competition Is increase commerce, and an agree ent whose direct effect Is to prevent ia play of competition restrains ade and commerce. TO vitlate such agreement or combination it Is not cessary to prove q total suppression trade; 1t Is only essential to show 'at by It's necessary operation 1t tends restrain Interstate or international .lde or commerce or tends to create a .onopoly in such trade or commerce q 10 deprive the publc of the ad- ntages that flow from free competi- bn."
 iIn the case of Loewe vs, Lawler e United States supreme court held Q Sherman act applicable to mem IFS of labor organization who, by teans of a boycott were endeavorinf destroy the business of a manu. ncturer of hats. The only distinction tween the Knight case and tho bewe- -I.awler case Is that in one tho ts complained of related to the man sacture and sale of sugar and in the Gher to the manufacture and sale o. ats.
 hComparing the foregoing trust de hions with that recently given in tho bacco case shows the development hch has occurred in the application the sherman act Judge Iaccmb' his majority opinion, defines thu 1tus of the law to-day as follows: "Dlsregardlng various dicta anC flowing the several proposltion 'llch have been approved by sue tssive majority of the supreme cour 1ls language Sherman Act) is to b. nstrued as prohibiting any contrac \ combination whose direct effect i prevent the free play of competi
 +, iuntry of the services of any numbe jindependent dealers however small thus construed the statute is revo ,.ionary By this 1t IS not intended imply that the construction is in rrect. The act may be termed rev ltionary because, before it's passage Ns courts had recognized restrain A trade which was held not to b fair, but permissible, although 1 .erated in some measure to restraii ,mpetition.
 2"By insensible degrees, under tn Iteration of many causes, business hnufacturing and trading alike, ha ore and more developed a tendenc, wards larger and larger aggrega ms of capital and more eXtensiV nblnations of individual enterprise ' is contended that, under existing ndtions, In that way only can pro ,ctlon be increased and cheapened Lw markets opened and developed ,bility in reasonable prices secured ,l industrial progress assured, Bu hery aggregation of individuals O Operations, formerly Independent imediately upon its formation ter mates an existing competition ether or not some other competi Dn may subsequently, arise.
 8The act, as above construed, pro its every contract or combination
 restrain of competition Size l
 made the test; two individual o have been driving rival expres