The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1911-12-07
among the people OF the United
common.stock Ownership.

Common.Stock Ownership
1t has been assumed that the pres
ent pro-rata and common ownership
In all these companies by former
stockholders of the trust would insure
a continuance Of the same old single
which the trust has by decree been
disintegrated This is erroneous and
Is based upon the assumed ineficacy
and innocuousness of judicial inJunc'
tons. The companies are enjoined
from cooperation or combination;
they have different managers. direc-
tors, purchasing and sales agents. II
all or any of the numerous stockhold'
era, reaching into the thousands. at
tempt to secure concerted action CT
the companies with view to the con-
troll Of the market, their number Is so
large that such an attempt could not
well be concealed and its prime NOV
ers and all its participants would be
at once subject to contempt proceed
ings and Imprisonment of summary
character. The immediate result OF
the present situation will necessarily
be activity by all the companies I'M
| der different managers, and then COM
petition must follow. or there VIII
| be activity by one company and stag
nation by another. Only short time
will inevitably lead to a change IN
ownership Of the stock AS all oppor'
tunity for continued cooperation must
disappear Those critics who speak
Of this disintegration in the trust as
mere change of garments have not
given consideration to the inevitable
working OF the decree and understand
little the personal danger OF attempt
ing to evade or set at naught the sol
emn Injunction OF court whose ob'
ject is made plain by the decree ana
whose inhibitions are set forth with
detail and conprehensiveness unex'
ampled in the history Of equity 1urls'
prudence.
The effect OF these two decisions has
led to DEGREES dissolving the combina-
ton Of manufacturers OF electric lamps,
southern wholesale grocers' assocla-
ton, an interlocutory decree against
the powder trust with directions by
the circuit court compelling dissolu-
ton, and other combinations of sim
liar history are now negotiating with
the department of justice looking to
disintegration by decree and reorgan-
ization in accordance with law. IL
seems possible to bring about these re-
organizations without general business
disturbance.
Movement for Repeal Of the Antitrust
Law.
But now that the antitrust act is
seen to be effective for the accomplish
ment of the purpose of its enactment.
We are met by cry from many differ
ent quarters for its repeal. 1t is said
to be obstructive of business progress,
to be an attempt to restore oldfash-
toned methods of destructive competi'
ton between small units, and to make
impossible those useful combinations
of capital and the reduction of the cost
of production that are essential to con-
tinued prosperity and normal growth.
In the recent decisions the Supreme
court makes clear that there is moth
ing in the statute which condemns
combinations of capital or mere big.
ness of plant organized to secure
economy in production and a reduc-
ton of its cost. 1t IS only when the
purpose or necessary effect Of the or
ganization and maintenance Of the
combination or the aggregation Of i'm
mense size are the sitting Of competi-
ton, actual and potential, and the en-
HANGING Of prices and establishing
monopoly, that the statute Is violated.
Mere size Is no sin against the law.
The merging of two or more business
plants necessarily eliminates competi-
ton between the units thus combined,
but this elimination is in contravention
of the statute only when the combina-
ton Is made for purpose Of ending this
particular competition in order to Sc
cure control Of and enhance. prices
and create monopoly.
Lack Of Definiteness In the Statute.
The complaint is made of the statute
that it is not sufficiently definite in
its description of that which is forbid
den to enable business men to avoid
its violation. The suggestion Is. that
we may have a combination Of two
corporations, which may run on for
years, and that subsequently the attor-
ney general may conclude that it was
violat ion of the statute. and that
which vas supposed by the combiners
to be innocent then turns out to be a
combination In violation OF the stat.
ute. The answer to this hypothetical
case Is that when men attempt to
amass stupendous capital as will en-
able them to suppress competition.
control prices and establish a monop-
oily they know the purpose of their
acts Men do not do such a thing
without having 1t clearly in mind. II
what they do Is merely fcl the purpose
of reducing the cost of production,
without the thought OF suppressing
competition by use Of the bigness OF
the plant they are creating. then they
cannot be convicted at the time the
union Is made, nor can they be con-
victed later, unless it happen that later
on they conclude to suppress competl
ton and take the usual methods for
doing so. and thus establish for them
selves monopoly. They can, In such
a case, hardly complain II the motive
which subsequently is disclosed Is at,
tributed by the court to the original
combination.
New Remedies Suggested.