Omaha daily bee., 1910-01-08

ions of the supreme court. however, makes
the changes unnecessary, for they exclude
from the operation of the act contracts
affecting Interstate trade in but a small
and Incidental way and apply the statute
only to the real evil aimed at by congress.
THE statute has been on the statute
book now for two decades, and the SUI
preme court in more than a dozen opin-
ions has construed It in application to va
rious phases Of business combinations and
in reference to various subjects matter.
1t has applied it to the union under one
control OF two competing interstate rail
roads, to joint traffic arrangements be-
tween several interstate railroads, to pri-
vate manufacturers engaged in a plain at
tempt to control prices and suppress com
petition in a part Of the country, includ-
ing a dozen states, and to many other
combinations affecting interstate trade.
The value Of a statute which Is rendered
more and more certain in its meaning by
a series Of decisions of the supreme court
furnishes a strong reason for leaving the
act as it is to accomplish It's useful pur-
pose even though, If it were being newly
enacted, useful suggestions as to change
Of phrase might be made.
Duty of Investigation.
II II lAt uulg dhu ~ Pun hOSN VI NV
executive to direct an investigation by the
Department of Justice through the grand
jury or otherwise, into the history, organ
lzatiun and purposes of all the Industrial
companies with respect to which there is
any reasonable ground for suspicion that
they have been organized for a purpose
and are conducting business on a plan
which is in violation of the antitrust law.
The work is a heavy one, but it 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 in the work. But
such an investigation and possible prose-
cution of corporations whose prosperity or
destruction affects the comfort not only
Of stockholders, but of millions of wages
carriers, employees and associated trades
men must necessarily 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 a
halt in our present prosperity that will
cause suffering and strained circumstances
among the innocent many FOR the faults
of the guilty few.
Plea for Federal Charters.
The question which l wish, in this mes
sage, to bring clearly to the consideration
and discussion of congress is whether, to
avoid such a possible business danger,
something cannot be done by which these
business combinations may be offered a
means, without great financial disturbance,
Of changing the character, organization
and extent of their business into one within
the lines OF the law under federal control
and supervision, securing compliance with
the antitrust statute.
"GenerallV in the industrial combinations
called trusts the principal business is the
sale of goods in many states and In foreign
markets; in other words, the interstate
and foreign business far exceed the bust
] ness done in any one state. This fact will
justify the federal government in grant
ing a federal charter to such a combina-
ton to make and sell in Interstate and for
eign countries the products of useful manu-
~facture and such limitations as will secure
a compliance with the antitrust law. 1t is
possible so to frame a statute that while
it offers protection to a federal company
against harmful, vexatious and unneces-
sary invasion by the states, 1t shall subject
it to reasonable taxation and control by
the states, with respect to its purely local
business.
Cannot Recognize "GOOd' Trusts.
: MANY people conducting great businesses
: have cherished a hope and a belief tina in
a some way or other a line may be drawn
t between good trusts and bad trusts, and
that it is possible by amendment to the
e antitrust law to make a distinction under
: which good combinations may be permitted
II ITO organize, suppress competition, control
j. prices and do it all legally II only they dc
n not abuse the power by taking two great
4 profit out of the business. They point with
force to certain notorious trusts as having
grow into power through criminal meth.
DDS, by the use Of illegal rebates and plair
, cheating, and by various acts utterly ir
violation of business honesty and morality
and urge the establishment Of some lega
line \of separation by which 'crimina
trusts of this kind can be punished, ant
they, on the other hand, be permitted unde
the law, to carry on their business.
Now the public and especially the bust
ness public ought 20 rid themselves Of tn,
idea that such a distinction is practicabl,
or can be introduced into the statute. Ger
tainly under the present antitrust law M
such distinction exists. 1t has been pro
posed. however, that the word reasonable
should be made a part of the statute AM
then 1t should be left to the court to sa!
" what is a reasonable restraint Of trade
what is a reasonable suppression Of com
petition, what Is a reasonable monopoly
1 venture to think that this is to put int
the hand of the the court a power i'm
. possible to exercise on any consistent prin
~ ciple which win insure the uniformity o
decision essential to just judgment. 1t /
" to thrust upon the courts-a burden tina
O. they have no precedents to enable ther
y to carry, and 20 give them a powe
n approaching the arbitrary, the use Of whic
&c might involve our whole judicial system /
a. disaster.
~ Methods Formerly Legal.
-, In considering violations of the ant
trust law, we ought, of course, not I
- forget that that law makes unlawf,
methods of carrying on business whic
before its passage was regarded a
evidence of business, of sagacity an
success, and that they We're d,
~, nounced in this act, not because OF the
=, Intrinsic morality. but because Of the dan
gerous results toward which they tende,
49,, the concentration OF Industrial power
~, their hands, leading to oppression and i,
-, justice. In dealing, therefore with man
OF the men who have used the method
condemned by the statute for the purpo,
-, OF maintaining a profitable business "
may we'll facilitate D cbanga h,, 49,,