Los Angeles herald., 1909-09-21

i'll interstate commerce shall issue any
additional stock or bonds Or other OBJ
legations except with the approval of
the commission, based upon a finding
by the commission that the same are
issued-first, for purposes authorized
by law, and, second, for a price not
less than par for stock and not less
than the reasonable market value for
bonds, such price being paid either in
cash or in property, or in services, and
ic in property or service, though at
the face value thereof as determined
by the commission.
"By these provisions enforced with
reason and drawn with view not to
be too drastic with railroads in the
beginning, we shall gradually abolish
that evil which is involved in the
union of competing roads by one road
owning the stock of another, and we
shall prevent the oVerissue Of stock
and bonds so as to prevent watering
and to keep the railroad efficient for
the service for which it was intended
"Drastic" Regulations
"In addition to amendments to the
law which are looking to rather
more drastic regulation of railroad
rates than heretofore, another pro-
vision should be added by which rail-
roads may be permitted to agree upon
traffic rates and make contracts with
respect to rates that shall not be pool
ing contracts but shall constitute
agreements as to rates-provided al
ways that such agreements shall re-
ceive the approval of the interstate
commerce commission.
I'm this wise the operation of the
antitrust law against traffic agree
ments between railroads will be abol-
ished, and against their absolute pro-
hibition would be substituted a re-
quirement that such agreements shall
meet the approval of properly con-
stituted tribunal.
This brings me to the question OF
the antitrust law. While we have not
threshed the whole matter out so as
to reach definite conclusion, l am
strongly inclined to the view that the
yyav to make the trust law more
effective is to narrow its scope some
what so it shall not include in its pro-
hibition and denunciation as crime
anything but conspiracy or comDl-
nation or contract entered into with
actual intent to monopolize or sup
Iress competition in interstate trade
"The antitrust law denounces con-
trade, whether criminal, whether made
with intent to monopolize or suppress
competition or without intent to do
either. The theory seemed to be that
a contract in restraint of interstate
trade tended to a monopoly and there
fore should be denounced because OF
it's tendency, whether there was any
actual purpose on the part of the per
son making it to monopollze or sup
press competition or not.
Force Weakened
"This feature of the present anti
trust law has, 1t seems to me, weakened
its force because it has seemed TO
bring within the condemnation or the
law contracts and other arrangements
which were actually innocent in their
character, and which We're not included
in those various combinations which it
was the real intent of the law TO sup
press. =, A., ,
were confined to combinations, con-
spiracies and contracts made with IN
tent to monopolize or partially monop-
oIize Interstate trade, or to suppress
oor,netition in Interstate trade, then
the real object of the law would come
within its denunciation and no one
could declare it's opinion to be unrea-
sonable, in that 1t included lot or
innocent contracts or arrangements.
at has been suggested that the law
ought to limit it's denunctation TO those
Contracts in restraint of trade that are
unreasonable. 1 do not favor any such
limitation. It seems to be proposed to
leave to the judges to decide what COM
binations and contracts in restraint of
trade ought to be permitted to exist
and to be enforced on general grounds
of public policy; in other words. to