The Julesburg grit-advocate., 1910-01-14

psstat,on- The moving causes have been
several: First. it has rendered possible
great economy: second. by a union OF
former eompetitors il has reduced the
PROBABILITY of excessive. competition: and.
third " the combination has been eK-
eensive enough. and certain methods in
tAsners have been adopted the combiners
have secured a monopoly and complete
coatroi Of prices or rates
A combination successful in achieving
co0plete control over 4 particular line of
aanufaoture has frequently been called
Q trust" | presume that the derivation
e the word is To be explained by the fact
that q usual method of carrying out the
plaa OF the combination has been to put
the capital and plants OF various individ-
uals. firms, or corporations engaged in
tbs same business under the control Of
trustees.
The Increase in the capital Of Q busi-
asas for the purpose Of reducing the
coot Of production and e0ecting economy
h the management has become a. essen
tial In modern progress a. the change
fro0 the hand tool to tbs machine.
when. therefore. We come to construs
tho object of congress in adopting the
0o-called Sherman Antitrust Act'' in
10. whereby in the hrst section every
contrac,. combination In the form OF .
trust otherwise. or conspiracy in re-
straint of interstate Or foreign trade OF
eommerce. Is condemned A. unlawful and
made subject to Indictment and restraint
by Injunction; and whereby In ths Sec
o0A section every monopoly or attempt
to monopolige. and every combination or
eonspiracy with other persons to monopo-
iise any part Of interstate trade or com.
uasrce. Is denounced ~ illegal and made
subject to similar punishment or re-
straint. we must infer that the evil aimed
At vas not the mere bignsss Of the en-
tsrprise. but It was the aggregation Of
capital and plants with the express or
sTpiied intent to restrain interstate or
foreign commerce. or to monopoliss II in
Wh0le or in part.
Trust Not Necessarily Dad.
Monopoly destroys competition entire
,v and the restraint Of tho full and free
operation of competition has . tendency
to restrain commerce and trade. COM
bination Of persons. formerly engaged In
trade as partnerships or corporations or
otherwise Of course eliminates the COM
uetition that existed between them: but
the incidental ending Of that competition
In not to be regarded a. necessarily q
direct restraint Of trade. unless Of such
an all-embrscinG character that the in
tention and effect to restrain trade are
An0ATent from IH6 ClICuH1L8nC60 OF are
expressly declared to be tho object of
the combination. A mere incidental re-
straint of trade and competition is not
within the inhibition Of the act, but II
IN where the combination or conspiracy
or contract 10 inevitably and directly .
substantial constraint Of competition, and
20 q restraint of trade. that the statute
10 violated.
The second condition Of the act 10 sup
nf tkA Arat
OF trade such a. 10 condemned In the
arst section. II successful and used to
suppress competition. 10 ono OF the COM
monest methods of securing . trade
monopoly. condemned in the second
section.
1t il possible for the owners Of . busi-
ness of manufacturing and selling useful
articles Of merchandise so to conduct
their business a. not to violate the In
hibitions of the antitrust law and yet
to secure to themselves the benefit of the
economies Of management and of produc-
ton due to the concentration under one
control of large capital and many plants.
II they use no other inducemsnt than
the constant low price OF their product
and its good quality to attract custom.
ana their business 10 . profitable one.
they violate no law. II their actual
competitors are small in comparison with
the total capital Invested. the prospect
Of new Investments Of capital by others
In such . profitable business 10 sufficient
ly near and potential to restrain them in
tho prices at which they sell their prod
uct. But II they attempt by . use Of their
preponderating capital. and by 4 sale ot
their goods temporarily At unduly low
prices. to drive out Of business their
competitors. or II they attempt. by ex-
elusive contracts with their patrons and
threats Of non dealing. except upon such
contracts or by other methods of sim
liar character, to use the largeness Of
their resources and tho extent of their
output compared with the total output
as . means Of compelling custom and
frightening Oh competition. then they
disclose purpose to restrain trade and
to establish . monopoly. and violate the
act.
Law 70 Suppress Abuses.
The object Of the antitrust law was
to suppress the abuses Of business Of the
kind described. 1t was not to interfere
with = great volume Of capital which,
concentrated under one organization, re-
duced the cost OF production and made
Its proht thereby. and took no advantage
OF It's size. by methods akin to duress, to
stihe competition with it.
wish to make this distinction as en-
phatic As possible. because I conceive
''Ns ssOtuu8 Gouiu Hdpptu ilOT0 ucbtTuC-
tive to the prosperity of this country than
the loss Of that great economy in produce
ton which has been and will be effect
ed In all manufacturing lines by the em-
ployment Of large capital under one man
asemsnt. 1 do not mean to say that
thers 10 not Q limit beyond which the
economy Of management by the enlarge
ment Of plant ceases: and where this
hnppens and combination continues be-
yond this point. the very fact shows in
tent to monopolize and not to economizs.
The original purpose Of many combina-
tons OF capital In this country was not
confined to the Legitimate and proper OBJ
tect OF reducing the cost Of production.
On the contrary. the history of most
trades will show At times q feverish de-
sire to unite by purchase, combination,
Or otherwise. all the plants in the coun-
try engaged In the manufacture Of a par
ticular limo OF goods. The idea was rife
that thereby . monopoly could be ef-
fected and . control OF prices brought
about which would inure to the profit of
those engaged in the combination. The
path of commerce IL strewn with failures
of such combinations. Their projectors
found that the union Of all plants did not
prevent competition, especially where