New-York tribune., 1908-03-24
7uE SHEPsfIV LAW ANENDH HESTS.

The bill of the National Civic Federation
amending the Sherman antitrust law seeks to
transform that measure from an act prohibit
ing combinations into an act prohibiting the
unreasonable and improper restraint OF trade
through combinations. When the Sherman act
was passed there was general belief that the
new tendency toward the concentration of busi-
ness was dangerous in itself and that all trusts
must therefore be prescribed. But the ten
dency having gone on developing despite the
Law. there is now disposition to recognize the
possibility of advantages to the public in indus
trial concentration and to frame legislation so
rs to repreSs only its abuses. At the time of
the Sherman laws enactment the chief thought
of the legislator was for the small producer
and trader who WAS being wiped out by his
big rival from his point of view all conbina-
tions were bad. and they accordingly for
hidden. To-day the tendency is to consider the
interests OF the public in general. From this
point of view any combination that effects econ
omies may be advantageous. and the states duty
becomes chiefly to see that there is no abuse
of the vast power which the concentration OF
business puts into tho hands Of the few. 1t IS
this change in the public view of trusts aud
monopolies which is reflected in tho Civic Fed
Grafton bill.
The new measure provides in eject for the
federal licensing of corporations engaged in in
terstatc trade. a favorite device among those
who have considered the national regulation Of
business combinations. 1t is provided that 3n:
corporation OF association filing the necessary
information with the Commissioner Of Corpora
tions or in the case of common carriers, With the
Interstate Commerce Commission. may, if the
commissioner of Corporations or the Interstate
Commerce Commission decides that the con
tract or combination is not in unreasonable re-
straint of trade, have an order certifying TO that
fact entered by the Commissioner of Corpora
lions or the Interstate Commerce Commission,
as the case may be- If such an order is entered.
then the combination cannot be proceeded
against under the Sherman act unless it be
proved that it is in unreasonable restraint of
trade. In other words. no action Will lie
against il simply because it is combination or
monopoly. or because it does effect certain re-
straint of trade. If it can convince the proper
commission that ii is not a bad combination. Sc
can get a license: and if it has license, it can
be attacked only the ground that it is operat-
ing against the public interest. If combina-
ton does not obtain such order or license. it
will be amenable To the Sherman act in all its
rigorS.
The bill also provides For certain concessions
10 labor Since the recent decision Of the
United States Supreme Court in the Danbury
hatters- case that the Sherman act applied to
labor union boycotts some doubt has existed rs
TO Just how much further the Sherman act
might affect labor organizations. As reasonable
captalistic combinations have fallen under its
ban. il was feared that the proper activities of
labor unions might find themselves there, too.
The Civic Federation bill dsposeS of such dn-
certainty by specifically recognizing the legit-
. innate functions of labor organizations. 1t pro
vides that the act shall not be enforced so as to
interfere with labor's right 10 combine in order
ia, ch q
unionism or with its right 10 strike But labor
receives no license to boycott. Capital may
combine under official oversight and labor may
combine without official oversight. but neither
may abuse that great power against the interest
Of the public.