The Elbert County tribune., 1910-01-13

tiai in modern progress as the change
from the hand tool to the machine.
When. therefore. we come to ccnstrue
the object OF congress- In adopting the
so-called Sherman Antitrust Act In
1890. whereby in the first section every
contract, combination In the form of
trust or otherwise. or conspiracy In re-
straint of Interstate foreign trade or
commerce. is condemned as unlawful and
made subject to indictment and restraint
by Injunction. and whereby In the sec
ond section every monopoly or attempt
to monopoiize, and every combination or
conspiracy with other persons to monopo-
lize any part OF Interstate trade COM
merce is denounced as Illegal and made
subject to similar punishment re-
straint. we must infer that the evil aimed
at was not the mere bigness of the en-
terprise, but II was the aggregation OF
capital and plants with the express or
implied intent to restrain Interstate or
foreign commerce. or to monopolize It in
whole or in part
Trust Not Necessarily Bad.
Monopoly destroys competition entire
ly and the restraint Of the full and free
operation of competition has a tendency
TO restrain commerce and trade. A COM
bination OF persons, formerly engaged In
trade as partnerships or corporations or
otherwise OF course eliminates the COM
petftiou that existed between them. but
the Incidental ending of that competition
IL not TO be regarded as necessarily a
direct restraint of trade. unless OF such
an an-embracing character that the In
tention and effect 70 restrain trads are
apparent from the circumstances or are
expressly declared to be the object OF
the combination. mere Incidental re-
straInt OF trade and competition is not
within the inhibition OF the act, but II
is where the combination or conspiracy
or contract Is Inevitably and directly n
substantial constraint of competition, and
so a restraint of trade. that the statute
Is violated.
The second condition of the act is sup
plement of the first. A direct restraint
of trade such as is condemned In the
first section, II successful and used to
suppress competition. is one of the COM
monest methods of securing n trade
monopoly. condemned In the second
section.
1t is possible for the owners of a busi-
ness OF manufacturing and selling useful
articles of merchandise so to conduct
their business 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 inducement than
the constant low price of their product
and its good quality to attract custom.
and their business Is a 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 Is sufficient
~ near and potential to restrain them In
the prices at which they sell their prod
uct. But IL they attempt by a use of their
preponderating capital and by a sale OF
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 the extent of their
output compared with the total output
as means of compelling custom and
frightening on competition, then they
disclose purpose to restrain trade and
to establish monopoly. and violate the
act.
Law to 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-
ouced the cost of production and made
It's profit thereby. and took no advantage
OF It's size. by methods akin to duress to
stife competition with it.
wish to make this distinction as en-
phatic as possible, because I conceive
that nothing could happen more destruc-
i've TO the prosperity OF this country than
the loss of that great economy in produc-
ton which has been and will be effect
ed in all manufacturing lines by the en-
ployment OF large capital under one man
agement. do not mean to say that
there is not q limit beyond which the
economy of management by the enlarge
ment of plant ceases; and where this
happens and combination continues be-
yond this point. the very fact shows In
tent to monopolize and not to economize.
the original purpose Of many combina-
tions of capital in this country was not
confined to the legitimate and proper OBJ
1ect OF reducing the cost of production.
On the contrary. the history of most
trades will show at times a feverish de-
sire to unite by purchase, combination.
or otherwise. all the plants in the coun-
try engaged In tho manufacture of a par
ticular line 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 is strewn with failures
Of such combinations Their projectors
found that the union Of all plants did not
prevent competition, especially where
proper economy had not been pursued In
the purchase and In the conduct Of the
business after the aggregation was com
plete. There were enough. however, of
such successful combinations to arouse
tho fears of good. patriotic men az to the
result of q continuance of this movement
toward the concentration In the hands of
a few of the absolute control of the
prices of all manufactured products.
Refers to Sugar Trust Case.
The antitrust statute was passed In
1890. and prosecutions were soon begun
under II. In the of the United States
VS.. Knight, known as the sugar trust
case" because of the narrow scope of
the pleadings, the combination sought to
be snjoined was held not to be included
within the prohibition Of the act. because
the averments did not go beyond the
mere acquisition OF manufacturing plants
for the refining of sugar. and did not In
clude that of a direct and Intended re-