The daily sentinel., 1910-01-07
FULL TEXT OF SPECIAL MESSAGE
OF PRESIDENT.
CONTINUED from Page Five }

nonopolize it in whole or in part.
Monopoly destroys competition ut
terly and the restraint of the full and
free operation of competition has a
tendency to restrain commerce and
trade. A combination of persons for
merly engaged in trade as partner
ships or corporations or otherwise, OF
course. eliminates the competition
that existed between them; but the
incidental ending of that competi-
ton is not to be regarded as neces-
sarily as a direct restraint of trade
unless of such an embracing charac-
ter that the intention and effect To
restrain trade are apparent from the
circumstances or are expressly de-
clared to be the object of the combi-
nation. A mere incidental restraint
of trade and competition is not with
in the inhibition of the act; but 1t is
where the combination or conspiracy
or contract is inevitably and directly
a substantial restraint of competi-
tion. and so restraint of trade, that
the statute is violated.
The second section of the act is a
supplement of the first. A direct re-
straint of trade, such as Is con
demned in the first section. if sue
cessful and used to suppress compe-
tition, is one of the commonest meth
DDS of securing a trade monopoly
condemned il the second section.
1t is possible for the owners of !
business of manufacturing and sell.
ing useful articles of merchandise Sc
to conduct their business as not tC
violate the inhibitions of the anti
trust law and yet to secure them
selves the benefits of the economies oil
Nf fsN,, La.
to the concentration under one con
troll of large capital and man.
plants. If they use no other induce
ment than the constant low price OF
heir product and its good quality tC
attract custom and their business Il
profitable one. they violate no law
If their actual competitors are small
in comparison with the total capita
invested, the prospect of investment.
of capital by Others in such a profit
able business is sufficiently near anc
potential to restrain them in th'
prices at which they sell their pro
duct. But. If they attempt, by a us'
of their preponderating capital an(
by sale of their goods temporarily
at unduly low prices to drive out o.
business their competitors, or if the!
attempt by exclusive contracts witt
their patrons and threats of non
dealing except upon such contracts
or by other methods of n similaI
character to use the largeness of theil
resources and the extent of their out
put. compared with the total output
as means of compelling custom AM
frightening of competition, then the.
disclose a purpose to restrain trad
and to establish a monopoly and vic
late the act.
The object of the antitrust Law
was to suppress the abuses of busi
ness of the kind described.
1t was not to interfere with a grea
volume of capital, which. concentrat
ed under one organization. reduced
the cost of production and made it
profit thereby and took no advantage
of its size by methods akin to dures
to stifle competition with 1t.
| wish to make this distinction a.
.~,>ahatic as possible, because I con
- - To- .lo--..sfi.ig Z eohid happen NOR
destructive to the property of thi
country than the loss of that econo
my in production which has been an,
will be effected in all manufacturin,
lines by the employment of large cap
ital under one management. do no
mean to say that there is not iimi
beyond which the economy of man
agement by the enlargement of plan
ceases. and where this happens ant
combination continues beyond thi
, point, the very fact shows intent u
monopolize and not to economize.
The original purpose of many com
binations of capital in this countr,
was not confined to the Legitimate
and proper object OF reducing the cos
Of production. On the contrary. thu
y history of most trades will show a
. times n feverish desire to unite b,
purchase, combination or otherwis
all the plants in the country engaged
in the manufacture of particula
kind of goods. The idea was riff
that thereby a monopoly could b,
effected and a control of price
brought about which would insure t
the profit of those engaged in tht
combination. The path of commerc,
is strewn with failures of such com
binations. Their projectors fount
that the union of all the plants die
not prevent competition. especiall,
where proper economy had not beeI
pursued in the purchase and in thu
conduct of the business after the ag
sregation was complete. There wer,
enough. however. of such successful
combinations to arouse the fears O.