New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-11-23

THE EKTENT or THE DECISION.
Interest in the decision of the federal
court against the Standard oil Company
will be largely fixed on the question
whether or not a reorga niZation Of the
oil industry under another guise will
meet the courts objections. Ii NAV l."
accepted as 4 certainty that the holding
company will be doomed lay this de
cision and the decision in the Tobacco
Trust ease. if they are sustained 10y the
supreme Court. and 10y the Northern
Securities decision. l. the net result.
then. 10 Dee that the holding company
vii he succeeded by another device. ac-
complishing the purpose "f ensrosSinG
the control Of industry I'm another way.
Just as the holding company succeeded
the trust when that suffered legal set
backs: This has ordinarily been the
history Of the conflict of'the law with
the corporate organization of business,
and il is often cynically said that moth
Ing is accomplished 10y legislation aimed
at industrial Capitalization.
But IL must be evident 10 any one
who reads the courts opinion that 4
combination 10 work the restraint Of
trade accomplished 10y the Standard oil
Company cannot he legally effected
merely by change of organization. The
Injunction addressed 10 the individual
defendants in the suit il 81 broad as
not 10 he open 20 the construction that
the court is willing 20 have them do the
same thing in a different way. They are
rot merely forbidden 10 resort 10 trus-
tees or holding companies in order Ia
carry out their combination. but they
are forbidden 10 effect a combination
10y causing the conveyance of the
physical property or business of two
"or more potentially competitive parties
TO the combination 10 any party thereto
or by any other such act" That appar-
entity both specifically and in general
terms fOrbids the substitution Of a sin
Gle corporation for a combination of
corporations. Moreover. the individual
defendants are forbidden 20 make ANY
express or implied agreement or ar
''ranSementS together or with one an
"other. like that adjudged Illegal hereby.
relative To the control or management
of any Of the said corporations" etc.
If the court had aimed Ia strike mere
~ N the form and not at the essenCe Of
this engrosSinc Of the petroleum IN
duStry il presumably would not have in
dulged in 80 sweeping an injunction.
And this view is borne out by the test
which the court lays down of the -
Gality Of combination-n IF
fl - 10 4 @ L.
and substantially restrict free competi-
''tiOn i'm commerce among states or with
foreign nations il il illegal within the
meaning of the statute" Under that
test. had the Standard oil Company
been a single great corporation owning
outright the property and business Of
formerly independent companies. III
stead If merely holding stock i'm them.
il would still have been Illegal
4 witty writer on economics has ,om-
pared the efforts Of legislators and lead
ers Of public opinion in this countr1 10
preserve the old free competitive or
canization of business 10 trying To make
the hen continue Ia sit after she mas
Matched cur an the eggs That is not
had description of the application of the
vide Injunction i'm the courts decree q
the particular industry affected hy il.
Furthermore. the purport Of this leci-
sion is 10 hiring the hen back and thrust
Ter upon a hundred nests which she has
already deserted: for the distinction he
tween The oil Trust and other business
combinations is not one Of kind hut nj
IL gree. Perhaps when the country is
persuaded that the eggs are all hatched
II may consent 10 allow the he'll 10 follow
ont her maternal instincts. in suitable
coop.