Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-07

operation. rendering them unlawful and
subject to Indictment and restraint.
RESTRAINT OF TRADE.
The supreme court, in several of its
decisions. has declined to rcao into the
statute the word unreasonable" be-
forc restraint of trade" on the ground
that the statute applies TO all restraints
and does not intend TO leave to the
court the discretion to determine what
is Il reasonable restraint of trade. The
expression restraint of trade" comes
from the common law. and at common
law there were certain covenants in
cidental to the carrying out of a main
or principal contract which were said
to be covenants in partial restraint of
trade. and were held to be enforcible
because reasonably" adapted to tho
performance of the main or principal
contract. And under the general
language used by the supreme court In
several cases II would seem that even
such incidental covenants in restraint
of interstate trade were within the in
hibltIon of the statute and must be
condemned. In order to avoid such
result. l have thought and said that
It might be well to amend the statute
so as TO exclude such covenants from
its condemnation. A close examination
of the later decisions of the court
however, shows quite clearly in cases
presenting the exact question, that such
incidental restraints OF trade are held
not to be within the law and are ex-
cluded by the general statement that
to be within the statute the effect upon
trade, of the restraint, must be direct
and not merely incidental, or Indirect
The necessity. therefore, for an amend
ment of the statute, so as to exclude
these incidental and beneficial coven-
ants in restraint of trade, held in COM
mon law to be reasonable. does not
exist.
EXCLUDED CONTRACTS.
In some opinions of the federal
judges. there have been intimationa
having the effect, If sound, to weaken
the force of the statute by including
within it absurdly unimportant combi-
nations and arrangements and Sug-
gestlng therefore the wisdom OF chang
ing It's language by limiting Its appll-
cations TO serious combinations with
intent to restrain competition or con-
troll prices. a reading OF the opinions
of the supreme court, however. makes
the change unnecessary for they ex-
clude from the operation of the act
contracts affecting interstate tradcIn
but a small and incidental way. and
applying the statute only to the real
evil aimed at by Congress
The statute has been on the statute
books now for two decades and the
supreme court in more than a dozen
opinions, has construed 1t In applca-
tlon to various phases of business COM
binations and in reference to various
subject matters. 1t has applied to the
union under ono control of two com
peting interstate railroads. to joint
traffic arrangements between several
interstate railroads; to private manu-
facturers engaged in a plain attempt to
control prices and suppress competition
in part OF the country including a dozen
states and to many other combinations
affecting Interstate traffic. The value
of statute which is rendered moro and
more certain in its meaning by series
of decisions OF the supreme court, fur
nishes a strong reason for leaving the
act as it Is, to accomplish it's useful
purpose. even though If it were being
newly enacted, useful suggestions as to
change of phrase might be made.
WILL INVESTIGATE.
1t is the duty and the purpose of the
executive to direct investigation by tho
department of justice through the
grand jury or otherwise. into the bis
tory, organization and purposes of all
tho Industrial companies with respect
to which there Is any reasonable ground
for suspicion that they have been or
BdulLeu lbI d pul DpSc anu are
ing business on a plan, which, is in vio-
lation OF the antitrust law. The wotk
is a heavy one. but 1t is not beyond
the power of the department of justice.
If sufficient funds are furnished to
carry on the Investigations and to pay
the counsel engaged i'm the work. But
such an investigation and possible
prosecution of corporations, whose
prosperity or destruction affects the
comforts not only of stockholders. but
of millions of wage earners. employees
and associated tradeSmen. must neceS
sarily tend to disturb the confidence
of the business community. to dry up
the now flowing sources of capital from
its places of boarding and produce n
halt in our present prosperity that will
cause suffering and strained circum
stances among the innocent many for
the faults of the guilty few. The ques
ton which 1 wish in this message TO
bring clearly to the consideration and
discussion of Congress. is whether. In
order to avoid such possible busi-
ness danger, something cannot be done