Rocky Ford enterprise., 1910-01-14

portation. The moving causes have been
several: First. 1t has rendered possible
great economy: second, by a union of
former competitors it has reduced the
probability of excessive competition: and.
third. II the combination has been ex-
tensive enough. and certain methods in
toners have been adopted. the combiners
have secured a monopoly and complete
control of prices or rates.
A combination successful in achieving
complete control over particular line of
manufacture has frequently been called
a trust" ] presume that the derivation
OF the word is to be explained by the fact
that a usual method of carrying out the
plan of the combination has been to put
the capital and plants of various individ-
uals. firms, corporations engaged in
the same business under the control of
trustees.
The Increase In the capital Of busi-
ness for the purpose OF reducing the
cost of production and efrecting economy
in the management has become as essen
tial in modern progress as the change
from the hand tool to the machine.
When. therefore. we come to corstrue
the object of congress in adopting the
so-callcd sherman Antitrust Act in
1880. whereby in the first section every
contract, combination in the form of
trust or otherwise. or conspiracy in re-
straint of Interstate or foreign trade or
commerce, IL condemned as unlawful and
made subject to Indictment and restraint
by Injunction: and whereby in the Sec
ond section every monopoly or attempt
to monopolze. and every combination or
conspiracy with other persons to monopo-
lize any part OF interstate trade or COM
merce is denounced as Illegal and made
subject to similar punishment or re-
s,raInt. we must infer that the evil aimed
at was not the mere biEness Of the en-
terprise, but 1t was the aggregation OF
capital and plants with the express or
implied intent to restrain interstate or
foreign commerce. or to monopolize 1t In
whole or in part.
Trust Not Necessarily Bad.
MonopoIy destroys competition entire
ly and the restraint OF the full and free
np,ratIon of competition has tendency
to restrain commerce and trade. COM
bination OF persons. formerly engaged in
trade rs partnerships or corporations or
o,berwise of course eliminates the COM
petition that existed between them: but
the Incidental ending OF that competition
Is not to be regarded as necessarily n
direct restraint of trade. unless of such
nm nll-empracing character that the in
ten,Ion and effect to restrain trade are
npparent from the circumstances or are
expressly declared to bc the object Of
the combination. A mere incidental re-
within the inhibition Of the act. but II
IL where the combination or conspiracy
or contract is Inevitably and directly n
substantial constraint Of competition. and
so u restraint of trade. that the statute
is violated.
plcment OF the first. a direct restraint
Of trade such ms Is condemned In the
first section. II successful and used to
suppress competition. is one OF the com
rnonest methods OF securing n trade
monopoly. condemned In the second
section.
1t is possible for the owners of . busi-
ness Of manufacturing and selling useful
articles OF merchandise so to conduct
their business not to violate the In
hlbltions Of the antitrust law and yet
to secure to themselves the benefit OF the
economies Of management and Of produc-
tiOn due to the concentration under one
control Of large capital and many plants.
II they other induccmcnt than
the constant low price of their product
and Its good quality to attract custom.
and their business Is . 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 n profitable business Is sufficient
ly near and potential to restrain them In
the prices nt which they sell their prod
uct- But II they attempt by IA use of their
prepondcratInE capital. and by n sale OF
their goods temporarily at unduly low
prices. to drive out of business their
competitors. or II they attempt, by cN-
elusive contracts with their patrons and
threats OF non-deaiing. except upon such
contracts or by other methods OF n sim
liar character. to use the lhrEencss Of
their Resources and the extent Of their
output compared with tho total output
ms n means OF compelling custom and
frightening on competition. then they
disclose purpose to restrain trade and
to establish monopoly. and violate the
act.