Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1910-01-12
Interpretations
TAFT'S THEME
Continued from page 1.


attempt by use of their preponderat-
ing capital and by sale of their
goods temporarily at unduly low
prices to drive out of business their
competitors, or if they attempt, by
exclusive contracts with their patrons
upon such contracts, or by other
methods of a similar character, TO
use the largeness of their resources
and the extent of their output COM
pared with the total output as
means of compelling custom and
frightening off competition, then they
disclose a purpose to restrain trade
and to establish monopoly and vio-
late the act. The object of the anti
trust law was to suppress the abuses
of business of this kind
1t was not to interfere with great
volume of capital which, concen-
trated under one organization, reduced
the cost of production and made It's
profit thereby, and took no advantage
fits size by methods akin to duress
to stifle competition with it.
Il wish to make this distinction as
emphatic as possible declared the
president, because l conceive that
nothing could happen more destruc-
tive to the property of this country
than the loss of that great economy
in production which has been and
will be effected in all manufacturing
lines by the employment of large
capital under one management. I do
not mean to say that there is not a
limit beyond which the economy OF
management by the enlargement of
plant ceases; and where this hap
pens and combination continues be-
yond this point, the very fact shows
intent to mQnopolize and not to econo-
mice"
Under the general language used by
the supreme court in several cases, 1T
would seem that even incidental cove
nants in restraint of interstate trade
were within the inhibition of the stat
ute and must be condemned. In or
der to avoid such result the presi
dent thinks it we'll to amend the stat
ute so as to exclude such covenants
from its condemnation.
1t is the purpose of the president,
so he says. to direct an Investigation
into the history, organization, and
purposes of all industrial companies
with respect to which there is any
reasonable ground for suspicion that
they are conducting business on a
plan which is in violation of the
antitrust law The work is heavy
one, but it is not beyond the power
of the department of justice, de-
clares the president.
Must Be Careful.
But such a investigation and pos
sible prosecution of corpor ations
whose prosperity Or destruction af-
fects the comfort not only of stock
holders, but of millions of wage earn
ers, employees, and associated trades
men must necessarily tend to dis
turb the confidence of the business
community, to dry up the now flowing
sources of capital from its places OF
boarding, and produce halt in our
present. prosperity that will cause
suffering and strained circumstances
among the innocent many for the
faults of the guilty few.
The question: says the presi-
dent, which | wish to bring
clearly to the consideration and
discussion of congress is whether in
order to avoid such possible busl-
ness danger something can not be
done by which these business combi-
nations may be offered as a means,
without great financial disturbance, of
charging the character, organization
and extent of their business into one
within the lines of the law under
federal control and supervision, Sc
curing compliance with the antitrust
statute"
Federal Incorporation.
Generally In the industrial comb.
nations called trusts the principal
business is the sale of goods in many
states and in foreign markets; n
other words, the interstate and for
eign business far exceed the busi-
ness done in any one state. This
act, says the president, will justify
the federal government in granting a