The Washington times., 1911-05-16
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Continued from First Page.)
ward with intense vigor and dramatic
force-have all been verified: the era OF
combinations began Immediately after
the knight decision was rendered. and
has covered even wider field than
Justice Harlan predicted.
And. his prophecies fi:ihled' Justlce
Harlan. almost eighty years old, still sits
on the same court, to call Its attentlon
20 the fuihllment of his earlier pre-
dictions, and to warn that the decision
Of today is just as abhorent to his view
Of proper public policy as was tnat
which marked the beginning Of the
great later era Of combinations.
The courts decision seems inevitably
- demand legislation either for Fed
eral Incorporation, or for Federal hcens-
This is the plan to which President
Roosevelt and the Civic Federation were
committed. Congress has steadfastly
refused thus far to change the Sherman
act. There will undoubtedly be de-
termined effort, in view of this decision.
TO have 1t strengthened. 1t will come
from the more radical members, and will
be opposed by the conservatives.
Divergence of Opinion.
How sharp is the divergence of opin-
ion about the decision, is shown by :he
the House Interstate Committee, and
James r. Mann, who was chairman
In the last Congress. Mr.. Adamson de-
clares fatty that the Supreme Court had
no right to inject the word ''unreason-
able" into the statute by construction:
MIR. Mann declares that he is highly
plea sed, and adds:
Every corporation suspected OF vio-
10 sherman
Judged on its own merits, the final de-
cision to be based on whether II i'm
poses a restraint that is reasonable or
unreasona ble."
Secretary Nagel, Of Commerce and La
Dor. declared that the decision points
to Federal Incorporation. He said the
precise limits of a corporations powers
could better be stated in the terms OF
a Federal charter than in the construc-
ton of a statute by court.
Senator Culberson Of Texas. agreed
with the Adamson view: he said the
decision Of the court was simply leg
islation from the bench.
Senator La Toilette was OF the same
mind. The court. he said. had written
into the law a modifying word which
Congress refused to put there. despite
that the big combinations tried hard to
get II there.
Progressives' Plan.
announced this afternoon that an in
formal conference OF progressive Sena-
tors had decided to present and press at
once an amendment to the Sherman act.
as follows:
No combination in restraint of trade
shall be regarded as reasonable within
the terms of this act.
While the decision Is regarded as dis
tinctly favorable to large combinations
in general II requires the dtsSolutlon
of the Standard OH Company. That
Company holds the stock of thirty-eight
other corporations, ats subsidiaries. Pre-
sumably, the shares in these minor cor
porations will nave to be distributed
back to their original owners or thelr
legal representatives.
II is stated positively from New YORK
that the Standards lawyers have taken
all possible precautions, and have pre-
pared a series of alternative plans Tor
administration of the great property and
business which can be adapted TO any
decision. The decision rendered Is the
simplest and most obvious one that
could have been made against the cor
poration. It simply sustains the decis-
ion of the circuit court of appeals. The
Standard people have, therefore. mac
plenty of time to prepare themselves
for whatever might arise, ana IL is gwen
out positively that they viii meet the
emergency without difficulty.
Tobacco Case.
Under the criminal provisions of the
sherman act, there is yet possibility
that criminal prosecutions may be
pressed against the officers and direc'
tors of Standard Oil. These men insist
that they are protected by the statute
of limitations. The Government holds
that their offenses have continued right
down to this date.
How the Standard decision will affeci
the Tobacco trust case, which is still
in the court, is the theme of much con-
lecture. For months past II has beer
generally believed among lawyers anc
Government officials that the Standard
Oil case, as made out by the Gov
ernment, was stronger than Its case
against the Tobacco combine. There.
fore, the prediction has been advanced
by many well-informed people, that the
Standard might lose and the Tobacco
company win.
The decision today makes plain only
that the court will look into the his.
tory, acts, and apparent purposes OF
the Tobacco combination, and from
these will decide whether 1t is gooo
or a bad trust; whether 1t has sougn,
to impose unreasonable" restraint o.
trade. That point can be decided only
in. the light Of reason which the court
intellectual processes may shed Wner
the Judges come to the case. Decision
in the Tobacco trust case Is expected
before the end Of this term OF court.