Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-11-16
Scope of Sherman Act.


been approved by successive majority of
man act) is to be construed as prohibit
ing 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 num-
Der of Independent dealers, however small!
AS thus construed the statute is revolu-
tionary. By this it is not intended to i'm
ply that the. construction is incorrect. The
act may be termed revolutionary. because
before It's passage the courts had recog-
nized a res RANT of trade which was
held not to be unfair. but permissible. al
though it operated In some measure to re-
strain competition.
by insensible degrees, under the oper-
alton of many causes, business. manufac-
turing and trading alike has more and
more developed a tendency toward larger
and larger aggregations of capital and
more extensive combinations of Individual
enterprise. II Is contended that under
existing conditions, In that way only can
production be increased and cheapened
new markets opened and developed. sta
bility in reasonable prices secured and IN
duStrial progress assured. But every az
gregation of individuals or corporations
formerly independent, immedia ely upon
its formation terminates an existing com
petition whether or not some other COM
petition may subsequently ARISE.
.''The act as above construed PROMPTS
every contract or combination IN RESTRAINT
of competition. Size is not made the
test: two individuals who have been driv-
ing rival exress wagons between villages
in two contiguous states. who enter into
combination to join forces and operate
single line restrain an existing Compel
ton. and 1t would seem to make little diff
ference whether they make such combina-
ton more effective by forming partner
ship or not.
What benefits may have come from
this combination, or from others com
nor need subsequent business methods be
considered. nor the effects, on production
or prices"
Power to Reach Combinations.
The advance of judicial Interpretation
of the Sherman act was also dealt with
by Judge Noyes, who concurred with
Judge Lacombe in the tobacco decision
Speaking of the momentous character OF
present trust litigation. Judge Noyes
says: 1T is Of much importance to many
people at the present time whether tbs
defendapts have entered into an unlawful
combination. 1t is of the most momentous
Importance to all the people for all time
whether the national government has
power to reach industrial combinations
dealing across state lines. Concede that
the present statute goes too far. Con.
cede even that no enactments are now
necessary Yet all must agree that condi-
tious may arise In the future requiring
legislative action which shall be both uni
form and effective. Congress alone could
take such action, and If this case shall
finally establish that the power exists IL
Congress to take it. then, regardless of all
other results. 1t is a good thing for the
future of this country that these proceed.
ings were instituted
As to the general character of combina.
tons coming within the law. Judge Noyes
says further:
Restriction of Competition.
THE construction Of the statute confines
the duty of this court within very narrow
limits We have only to inquire whether