Rogue River courier. (Grants Pass, Or.) 1886-1927, 1911-05-19
THREE PHASES OF OIL
DECISION ANALYZED

WASHINGTON, May 17.-Three
phases of the decision Of the supreme
court in the Standard Oil case have
focused attention on the legal minds
here today.
The first is the light OF reason"
test for violations Of the Sherman
law.
The second is the sharp criticism
of Justice Harlan that by this In
terpretatlon the supreme court has
amended the constitution" by
usurpatlon of the powers OF the leg
islative branch OF the government.
The third is the belief that the
decision gives the subsidiary corpor-
ations of the Standard the right to
reorganize into new combinations
after the parent company has been
dissolved.
The three phases OF the question
are contained In three paragraphs
of the decision. The Eight OF rea-
son" class Is from the decision OF
Justice White. 1t follows:
"The merely generic enumeration
which the statute makes OF the acts
to which 1t refers, and the absence
of any definition Of restraint OF
trade as used In the statute, leaves
room for but one conclusion, which
Ia that It is expressly designed. not
TO limit the application Of the act
unduly by precise definition, but
while clearly fixing standard that
Is by defining the Interior companies,
which could not be transgressed
with impunity. to leave II to be de-
termined by the light Of reason
guided by the principles of law and
the duty to apply and enforce the
public policy embodied In the stat
ute In every given case, whether any
particular act or contract was within
the contemplation Of the statute. +"
II was on this phase Of the de-
c,sion that Justice Harlan comment
ed, critlcising the court for attempt
Ing to amend" the Sherman law.
He said.
Everyone knows that since 1897
at each session OF congress attempts
have been made to get the Sherman
law amended so as to make legal
reasonable" restraint of trade. The
law never has been amended In this
particular. In my judgment II never
will be amended along this line.
"The constitution provides there
shall be three coordinate branches
oil the governmental legislative
the executive and the judicial---each
with clearly defined duties. This de-
cision today says the judicial by It's
action shall amend the constitution. "
The third point Is the one most
widely discussed by trust lawyers
snd by business mon. To them II
seems to open the way for the legal
reorganization OF the Standard sc
that II continue In business The
paragraph is from the opinion o
Justice White.
I'VE say this. since II does not nee
essarlly follow because illegal re
straint of trade or attempt to mop
opolige or monopoli2atlon resulted
from the combination and transfe
OF stocks of the subsidiary corpor
ations OF the New Jersey corporation
that n like restraint or attempt I
monopoll2e or mcnopoli2atlon woul
necessarily arise from agreement
between one or more OF the subsid
ary corporations after the transte
OF stock by the New Jersey corpol
alton For an Illustration take tn
pipe lines. by the effect OF the trans
fer Of stock of the pipe lines II woul
come under the control Of the va
ious corporations instead Of beln
subject to uniform control. II n
various corporations owning the lin,
determined to combine, so as
make a continuous line, such a
agreement or combination would n,
te repugnant TO the Sherman &C
and yet II might be restrained
the decree"