The Detroit times., 1911-11-14
UHAT IS A REASONABLE
IRUsT2 lAFOlLEITE
WILL OFFER SOLUTION
Wisconsin Senator's Bill Adds
Six Sections To Sherman
Antitrust Law.
DOESN'T CHANGE STATUTE.
Would ProhiDi. Pernicious Tricks
By Business Combinations
Against Rivals.
DOESN'T CHANGE STATUTE
ax gibson GARDNER.

WASHINGTON, Nov. l3.-ln vie"
OF The supreme court decision In the
tobacco and Standard Oil cases anu
OF the incidents following those de
cisions, including the circuit court $
consent to the so-cailed ''reorganiSa-
ton" scheme OF the former trust, the
most important task confronting con-
gress. soon 10 convene. is to dehne
what Is reasonable" as concerns
trust
Only one plan has been proposed
10 date and that is embodied In Dill
by Senator LaFollette,
This bill does not change any part
OF the Sherman law as IL has been IN
terpreted up-to-date, but it adds six
more sections, as follows:
Section 4. When the government
has started-Fa prosecution and proved
the existence Of a combination or con-
spiracy in restrain OF trade, thereup'
on the Law shall presume such COM
bination TO be unreasonable and the
burden OF proof rests on the trust TO
show that. ID is reasonable. This
transfers the burden of proof.
Section 2. When a combination
has been shown TO exist. the following
practices shall be regarded as 'un-
Reasonable, within the meaning of
the law:
Putting restraints on the purchase
OF It's output In any of the following
ways: (a) BY lease or agreements
which restrain the use of competing
articles; (b) by contracts forced on
purchasers based on the amount OF
goods purchased and the aggregate of
price paid for them; (c) by refusing
Ito sell TO or giving less favorable
terms to some purchasers than 10
others: I'D by determinations based
on territorial divisions of the market;
tel by refusals TO sell in certain ter
ritory or TO certain classes of con-
sumers; Cd by oppressive competi-
fion: Cgl by any other methods which
are in fact shown to be ''unreason-
ableH
Exceptions are made as to patent
rights and the appointment of sole
agents.
Section 8. "Unreasonableness" shall
be presumed in the case of the follow
ing practices Tin this case evidence
may be heard to overcome this pre-
(. a
controls more than 40 per cent in
value of the total quantity of its out
put sold in the United States, or 20
per cent in value of the total guam
tity of the article In which IL deals
sold in that part of the United States
to which its business extends; Oh If
the combination puts an unreasonably
high price on some article entering
.a.t - e. - saY.
which IL produces.
Section 4. This section puts any
citizen in the legal position of the
government as against any combina-
ton shown to be in violation OF the
law. That Is, any citizen who has
been injured by a combination con-
victed by government prosecution has
only TO prove the amount of his dam
ages. This admits all persons dam
aged by an illegal trust TO become
parties to any suit brotght by the
government and to benefit by the gov
ernment and to benefit by the govern
ment's prosecution.
Section 6. This section permits
those who have been damaged by a
trust to begin action at any time with
IN three years after the government
has secured a verdict
Il will be noted that the LaFollette
amendments cover practically all the
methods under which the modern
trusts flourish. There are certain
practices well-known to the world OF
big business, which enable concerns
like the shoe machinery trust, Stand.
ara Oil and the tobacco trust TO com
pete unfairly in their lines of trade.
The shoe machinery trust, for in
stance, leases its machinery. Nobody
can make shoes except by paying
tribute to the shoe machinery trust
Nobody can get the machinery or any
simple part necessary to make
small section OF shoe without sign.
ing contracts, leases and agreements
which place the individual absolutely
NJ the mercy OF the shoe machinery
combination.
The tobacco trust is a good ex.
ample OF the practice of refusing To
sell TO certain persons and giving
favorable terms to others. An indie.
pendent manufacturer OF plug tobac.
co would be refused licorice by the
trust and would not be able to buy II
anywhere else, as the trust controls
the licorice output
Inc express companies have -four.
ished on division of territory.
Standard Oil was itself the best illus.
tration of cutthroat methods in com.
petition.
IL all these practices are enumer-
ated in the law and are conclusively
deemed to be unreasonable and II.
legal. business men will know what
TO expect and a long step will have
been taken toward freeing business
from the practice which build up
great monopolies.