The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-01-02

tho standard Oil and the tobacco
organizations contend that the power
granted 10y tho Constitution 10 regulate
Interstate commerce Is not so extensive
az 10 include regulation OF tho &C
QUESTION and ownership OF hold
ing company OF stock in Other corpo-
rations. The government; argues that
Whenever holding company ncccssar-
ily STILES or directly and substantially
restricts free competition In commerce.
tho United states has power TO pro-
tcct such commcrCc.
Whnt IL "Rcstrnintt'
In the contest regarding the answer
TO tho question Of what Is restraint
OF irado or commerce." the first dis
pUtc is over the Interpretation of ''rc-
straint of trade as equivalent to the
absence OF free competition The
government advances Tho theory that
reduction of competition means re-
straint Of trade and consequently
higher prices. Tho corporations urEe
that combination OF producers may
mean q reduction of expenses and con-
sCducntly lower prices,
The government further contends
that The sherman anti trust law re
fcrs only to such restraints as are d.
rect aud material One judge in pnSS-
Ing on the tobacco case In the Cir.
cult Court held that the law referred
10 every restraint without regard to
dircctnnss or matcriaiity. 1t Is said
.hat this doctrine would Sttflc legiti-
mate business. Tho defendant organ
!ya;ions do not press this argument
so much because they claim III their
cases that no direct and material re-
strsint OF commerce cNists. This claim
is based upon the argument that they
arc engaged principally, not IN inter
state commerce. as were the railroads.
In tho Northern Securities case. hut
In tho manufacture OF goods. which
may go into Interstate commerce later.
Contest Over "Mon"poly.'
The third division nf the contest is
over tho INTERPRETATION Of the word
"monopolize" The standard oil is par
ticrlary concerned with this phase
OF the controversy, because the lower
TO monorolize. Attorneys for the COM
pany advance the argument that nn-
der tho law IT could legally ACQUIRE tho
trade OF the world in an article pro-
vidcd IL did nothing 10 prevent others
from competing with 1t. They declare
Tho Standard oil has done nothing TO
prevent others from competing. Sue
cess has como TO It. so they claim. be-
cnusc of "nntiring energy infinite
Skill abundant capital and steady rc-
Investment OF carly profits The gov
eminent has piled up volume on volume
to support its contention that success
was achieved by unfair competition.
The corporation tan cases eighteen
In all, involve entirely different argu-
mcnts Tile corporation tax provisions
of The Payne Aldrich tariff act provide
FOR "a special excise tax With respect
TO the carrying on or doing business
by corporations, equivalent 10 per
and above s5o00."
Each Of the cases Was originated in
various Circuit Courts by persons imam
cially Interested III the taN not being
paid These persons asked tho courts
TO cnjoin the payment of the taN Ivy
respective corporations because the iaN
was unconstitutional The validity OF
the tax was upheld in each case.
Tho law Is opposed principally on
the grounds that 1T attacks the sovcr-
eighty of the states by taxing state
franchises that II nyades The right
to duo process OF law hy lcvying
tax on classes fixed arhitrarily and
that it is direct tax not apportioncd
among tho States as required by the
Constitution.
The Governments Hricf
The brief nf tho government, in tile
tobacco case was made public TO-
night.
II las been prepared by ATTORNEY
Gcncrai Wickcrshaui ana his sicrial
assistant {. McReynolds Mr..
Wickorsnam Is supervising also the
Preparation Of the forthcoming argu-
mcuts Of the government In The stand
ard oil dissolution suit. Hence. it Is
generally believed that the t'icories
advanced in the tobacco brief will he
followed IN the Standard oil case. anil.
81 approved by tho Supreme Court Will
bc the law Of the land for years to
conc.
In contrast wi..l the subordlmation
Of tho point a year ago when tho TO-
h"cco case was argued before ile
court Tor IN" first time, tho govern
mont now emphasizes its position that
the sherman anti-;rtis, law ahoiil1 10.
BE interpreted so as 10 nut tho s;ainu
OF illegaIity upon every sort o: rc-
S,raint of in,crsta,c ar forcjru INN,
,ncrre such n t6oory hnS G.er all
vanced before In the iuicrest ~ III.
good ,-usts" as jistinri,isbn., -5-n,1
,bc ahad,,'nrne - IN Il .'' ~
Government: dor,,.,,o .5t,,'.b i-J
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forait.n cr,.,,,.r1 ,,,.,, 80
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