The Washington herald., 1910-01-08

cidents and injuries to railway train
men.
No Need for Change.
With reference TO the antitrust law
and Federal Incorporation, the President
says:
The object Of the antitrust law was
10 suppress the abuses OF business. It
was not to interfere with a great volume
Of capital which. concentrated under one
organization. reduced the cost Of produc-
tion and made it's profit thereby, and
took no advantage of its size by methods
akin to duress to stlhe competition
with IL.
7 wish 10 make this distinction as en-
phatic as possible, because / conceive
that nothing could happen more destruc-
tive TO the prosperity Of this country than
the loss OF that great economy in pro-
duction, which has been, and will be, ef-
fected in all manufacturing lines by The
employment OF large capital under one
management. ! do not mean 10 say
that there is not limit beyond which
the economy Of management by the en-
largement OF plant ceases, and where
this happens, and combination continues
beyond this point. the very fact shows
intent TO monopolize, and not to econo-
mize.
a close examination of the court deci-
sions shows quite clearly in cases present
ing the exact question, that incidental
restraints of trade are held not to be
within the law and are excluded 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 amendment Of
the statute so as TO exclude those inciden-
tai and beneficial covenants IN restraint
of trade held at common law to be rea-
sonable does not exist.
Federal Incorporation.
Generally, in the industrial combina-
tiOns called trusts the principal bust
ness is the sale Of goods in many States
and foreign markets; in other words. the
Interstate and foreign business far exceeds
the business done in any one state. This
fact will justify the Federal government
In granting a Federal charter TO such a
combination to make and sell in inter
state and foreign commerce the products
OF useful manufacture under such limita-
tions as will secure a compliance with
the antitrust law. 1t is possible so 10
frame a statute that, while It offers pro-
lection to a Federal company against
harmful, yexatious. and unnecessary in
vasion by the States, it shall subject II
States. with respect to its purely local
business.
Many people conducting great bus-
nesses have cherished a hope and a be-
lief that in some way or other a line may
be drawn between good trusts and bad
trusts, and that it is possible by amend
ment to the antitrust law to make a dis
tinctlon under which good combinations
may be permitted to organize. suppress
competition. control prices. and do it all
legally il only they do not abuse the
power by taking too great profit out of
the business. They point with force TO
certain notorious trusts as having grown
into power through criminal methods by
the use Of Illegal rebates and plain cheat
ing, and by various acts utterly violstlve
of business honesty or morality, and
urge the establishment OF some legal line
of separation by which criminal trusts
Of this kind can be punished. and they,
on the other hand, he permitted under
the law 10 carry on their business.
Now the public, especially the business