Omaha daily bee., 1908-07-29

roosevelt an amendment to
the antitrust law, known as the Hepburn
bill, which provided for voluntary classi-
tlcation and created a strong motive there
for by granting immunity from proseCu-
ton for reasonable restraints OF interstate
trade to all corporations which would reg
lister and submit themselves to the pub
llcity regulations Of the Department Of
m and Labor.
The democratic platform suggests a re-
quirenent that corporations In Interstate
trade having control Of . per cent OF
the products I'm which they deal shall
take out a federal license. This classifi-
cation would probably include a great
many small corporations engaged in the
manufacture OF special articles or com
n1odities whose total value Is so incon-
siderable that they are not really within
law.
II is not now necessary. however. to
discuss the relative merit Of such proposi-
tons, but II is enough merely to affirm
the necessity for some method by which
greater executive supervision can be given
TO the federal government over those bus
inesses In which there Is a temptation to
violations Of the antitrust law.
Construction Of Antitrust Law.
The possible operation Of the antitrust
law under existing rulings OF the supreme
court has given rise to suggestions for its
necessary amendment to prevent its ap-
pllcation to cases which Il is believed were
never In the contemplation Of the trainers
Of the statute. TAX two instances: A
merchant or manufacturer engaged In a
legitimate business that covers certain
states wishes to sell his business and his
good will, and so in the terms of the sale
obligates himself to the purchaser not to
go into the same business in those states.
Such a restraint Of trade has always been
enforced at common law. Again, the en-
ployes OF an interstate railway combine
and enter upon a peaceable and lawful
strike to secure better wages. At COM
mon law this was not a restraint Of trade
or or a violation of the rights
OF the company or Of .he public. Neither
case ought to be made a violation Of the
antitrust law. My own Impression is that
the supreme court would hold that neither
or these Instances are within it's inhibition.
but II they are to he so regarded general
legislation amending the law is necessary.
Democratic Plank Faulty.
The suggestion of the democratic Mat
FORM That trusts be ended by forbidding
corporations to hold more than 50 per cent
or the plant In any line OF manufacture
is made without regard to the possibility
or enforcement or the real evil in trusts.
A corporation controlling IS or 80 per cent
or the products may by well known methods
competition in a part Of the country as
completely as If 1t controlled 60 or 70 per
cent thereof.
Compulsory Sale Impractical
The proposal to compel every corporation
to sell It's commodities at the same price
The country over, allowing for transporta-
ton. is utterly impracticable. 1t it can be
SHOWN mat in order to drive out competi-
Nloh' a corporation owning a large part of
the plant producing an article is selling
In one part of the country, where it has
competitors, at a low ard Improbable
price, and in another part of the country.
where 1t has none, at an exhorbitant price
this is evidence that it is mpt an
unlawful monopoly, and j~ustifies conviction
under the antitrust law; but the
proposal to supervise the business
OF corporations iu such a way as
to fix the price of commodities and
compel the sale at such price is as absurd
dOu 8OClA1Ht1D a DlAnE az uau Auar In
serted IN a democratic political platform.
Policies and Platforms.
The chief difference between the repub-
lican and the democratic platforms is the
difference which has heretofore been seen
between the policies of MIR. Roosevelt and
those which have beer advocated by the
democratic candidate. Mr.. Bryan. Mr..
Roosevelt's policies have been progressive
and regulative; Mr.. Bryan's destructive.
Mr.. Roosevelt has favored regulation OF
the business in which evils have grown nm
50 as to stamp out the evils and permit
the business TO continue. The tendency OF
Mr.. Bryan's proposals have generally been
destructive OF the business with respect to
which he is demanding reform. Mr.. Roose-
welt would compel the trusts to conduct
their business in a lawful manner and Sc
cure the benefits Of their operation and
country of which they are and important
part; while Mr.. Bryan would extirpate and
destroy the eEtire business in order to
stamp out the evils which they have prac-
ticed.
Advantage of combination.
The combination OF capital in large plants
to manufacture goods with the greatest
economy is just as necessary as the assem-
bling Of the parts Of a machine TO the
economical and more rapid manufacture of
what IN old times was made by hand. The
government should not interfere with one
any more than the other, when such aggre-
cations of capital are legitimate and are
properly controlled, for they are then the
natural results OF modern enterprise and
are beneficial to the public. In the proper
operation of competition the public viii
soon share with the manufacturer the adj
vantage IN economy OF operation and lower
prices.
What Is an Unlawful TrustI
When, however, such combinations are
not based on any economic principle but are
made merely for the purpose Of controlling
the market, 10 maintain or raise prices,
restrict output and drive our competitors.
the public derives no benefit and we have
a monopoly. There must be some use by
the company or the comparatively great
size of its capital ard plant and extent
OF its output, either 10 coerce persons to
buy OF II rather than OF some competitor
or TO coeTce those VINO would compete with
II to give up their business. There must
usually, in other words, be shown an ele-
ment OF duress in the conduct OF its bust
ness toward the customers in the trade
! and its competitors before mere aggregation
OF capital or plant becomes al unlawful
monopoly. 1t Is perfectly conceivable that
in the interest OF economy Of production a
great number of plants may be ~legltimately
assembled under the ownership ui one cor
poration. IL is important, therefore, that
such large aggregatiOLs OF capital and
combination should be controlled 50 that
the public may have the advantage OF
reasonable priGes and that the avenues OF
enterprise may be kept open 10 the individ-
ual and The smaller corporation wishing to
engage il business.
Not Violation of ANTITRUST Law.
In a country like this, where, in good
times, there is an enormous floating capital
awaiting Investment. Ihe periOu before
which effective competition, by consiruc-
lion OF new plants, can be introduced into
any business, is comparatively short, rarely
exceeding u year, aud is usually even less
than that. Existence of actual plant Is not,
LheretoTe, necessary to potential COmpell-
ton. Many enterprises have been organized
on the theory that mere aggregation of all,
or nearly all, existing plants IN a line OF
manufacture, without regard 10 economy
Of production, destroys composition. Ihey
have. most OF them, gone into bankruptcy.
Competition in a profitable business Will
not be affected By Inc mere aggregation OF
many existing plants under one company,
unless the company thereby effects great
] economy, the benefit of which II snares
\ with the public, or takes some Illegal
method TO avoid competition and TO perpel-
uate a hold on the business.
Unlawful trusts should be restrained with
all the efficiency of i~njunctive process, and
the persons engaged in maintaining them
should be punished with all the severity OF
criminal prosecution. In order that the
methods pursued In the operation of their
business shall be brought within the law,
To destroy them and NO eliminate the
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