New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-07
LAW EFFECTIVE
So Declares Mr.. WiCkerSham in
Discussing "TruSt" Decisions.
PRAISES "RULE OF REASON"
Says Standard Oil and Tobacco
Opinions Fave Narrowed
Area of Uncertainty.

Area of Uncertainty.
Battle Greek. Mich. July attorney
General Wickersham spoke before the
MICHIGAN State Bar Association here to-
day and discussed the supreme Court re-
cent Interpretation Of the sherman Anti
Trust law in the Standard Oil and Iooacco
cases. lie gave bis unqualified Endorsement
10 the co1r,'s application OF the so-calieo
rule Of reason
Those who have tnOUghtlessly yielded 10
the superficial conclusion resulting from the
application by the Chief Justice ot the RUE
of reason TO the Interpretation OF the SheI-
man law" lie said. can find but httls 10
justify the idea that the sherman law mas
been made Ineffective by those two deci-
sions. for precisely the contrary Is es'ao-
.lished BY these two great judgments
THE most cursosy examination Of the
decree IN the Tobacco case-the most casual
consideration OF the drastic ana tdrreaching
remedy impoSed-nakes 1t perfectly sppa'-
ent that tue sherman law, perhaps iol INC
hrst time, has been demonstrated TO DC an
actual. effective weapon for the accom-
phshment Of the purpose for winch II was
primarily enacted--ns mely. the DESTRUCTION
OF the great combinations famih2rly known
as trusts
Mr. Wickersham continued;
The only legitimste object and end OF all
government is the greatest 5000 Oh I .',
sreatest number OF people. Inc means uy
which this IS attained vary IN accoroahCe
with the experience ana tenpeIeI1eht Ua
the people AL history oemohstIa'es NV
TACT that the greatest prosperity 10 mo
e~sfe rs resulted nom allowing 10 lhdi-
Vidual effort in trade and commerce Ias
utmost freedom consistent with society a.
large :. .t,- ,ov. ras
been greatly narrowed ana its scope AM! Anu
erect nave oeen pretty clearly ueIiiieu, - 20
school OF literal inteTpre citation mas Ueeh IL
undated and the application OF IIIS -
IeasOna Ole construction deCiareu' ~ -
will always be q held OF uncertainty IN -
TAR as an investigation OF facts Is reQulIeN'
particularly when intent becomes q NJ
essarv consideration, but this much surrey
NAV now te said to be beyond cohlIC'Vt - :
that ordinary agreements or purchase al.u
sale Of partnership or OF corporate OIsd4-
,zation do not violate the hIst sect4on %
tbs Sherman act, even though lnclot4It d4ly
and 70 = limited degree they may oPs!aS'
TO restrain competition IN lnterslSa.S VI e,Sct
eign commerce oel"efh ti'0 F
agreements ,..t. 90. associ-
alton the direct object ana eI@-l % SS,3SA
rs 10 control prices, restrict output NV
territory refrain from competition OF eA-
olude or prevent others from colnpeL.--s -
snV particular heid Of enterprise, imposes
an undue restraint upon trade ana CON
rrerca and is IN violation OF the hISl Se0'
ton 81 the act
Monopoly Net in Size.
This principle applies 70 all associations
cf Ccrnpetitors Of the character - "al.s
known as pools, 70 agreements WIN 20,
raNsd wholesale or retail agents WHEREBY
the manufacture Of an article, even tnousa
rosds sccCr(ing % some secret process or
formula seeks 70 control the, price az
rAo,Iv az Indirectly from the manufact-
urer. i applies also 10 attempts 70 Col.-o!
Cornpstiton tween lnCcp-LCt-!t -vli0T- y
oy means Of common stock nouns Ne -.
whether individual or corporation Ho-oSt'
size alone does not constitute IhonoPols
The attainment or dominant pos - =.
z business acquired as the result % tg J
entArrrise and normal MsthocS u business
I davelounent IS not q violation or the law
L rl,t unfair methods OF trade, by destroying
and excluding competitors by means OF N
-ercorporate stockhOlclngs. or oy mems
OF agreements between actual or Polenlldl
cornpetitors whereby the control OF COM
rqerce smOng the states Q! WIN ~! go
Z countries in any particular me OF nuuaL.
4 fs occurred or threatened. expose those who
/ are concerned in such efforts 70 the PEN
alties prescribed il the second section i. OF
nopoNzns or attempting 10 monolol!ze
such commerce.
Courts Ire Supreme,
y is also now settled that no form n
corporate organization. merger or CON
soIidation, no species OF transfer o. tlue,
. whether by sale. conveyance or mortgage
ard no lapse q time from the date q tns
Z ORIGINAL contract. conspiracy Or comOlna-
ton. can bar a FEDERAL court Of eouly
from terminating an un-aWIul restraint OF
CON pe!ling the 6tstntearauon OF 2 monopo-
listic combination
Nj. Wicksrshan' quoted from Governor
Woodrou Wilson's work. The state the
following.
u is one Of the Distinguishing CHARACTER;
istics Of the English race whose LoAtlcai
habit has been transmitted 20 us throCs =
the sape-iols generation by whom this
government was erected. that they have
never felt themselves bound BY The logic OF
laws. but ONLY by practical uacelslano-
ing % them based upon SLOW precedent.
For this race the law under which they
live is a. any particular time Wnat y Is
then understood 10 be ana this understand
ing OF il is compounded Of the circurn-
stances Of the tine. Absolute tneCrles OF
legal Consequence they have never cared 10
follow out u their conclusions. Inelr laws
have always been used as parts OF tne
principal running machinery or their poll
rlcs-parts 70 he fitted from time 70 time,
by Interpretation, 70 existing opinion and
social condition.
If this law" declared the Attorney Cen
eral IN conclusion. designed 10 protect the
people OF this country from the evils OF
monopoly and 70 preserve the liberty OF
the individual 10 trade freely. shall now
be clearly understood. u It's true purpose
shall be recognized end its benencent con-
sequences realized the twenty years Of
slowly developed Interpretation and widen
ing precedent will not have been without
great value. For the law will henceforth be
used. 70 employ Dr.. Wilson's language, as
part Of the running machinery Of our
political system. adapted 70 The needs Of
our social conditions
81 EcTI0N CHANGES HEARING