Morgan County republican. (Versailles, Mo.) 1906-1914, 1911-12-07
Only Matter Touched On In Presidents
Message to Congress
Additional Legislation to Strengthen Present
Statutes Is Recommended Defends Stand
ard Oil and Tobacco Decisions

single holding company ~ In the ease
or the Standard OIL trust. The main COM
pany was the American Tobacco COM
pany. a manufacturing. selling and hold
Ing company. The plan adopted to de-
stroy the combination and restore compe-
tition involved the redivision Of the capi-
tai and plants Of the whole trust between
some Of the companies constituting the
trust and new companies organized for
the purposes of the decree and made par.
ties to 1t. ane numbering. new sn6 old.
fourteen.
In the original suit there were twenty
nine defendants who were charged with
being the conspirators through whom the
illegal combination acquired and exercised
Its unla wful dominion. Under the de-
cree these defendants will hold amounts
OF stock In the various distributee COM
panies ranging from II per cent. as q
maximum to 2s1t per cent. as a minimum.
except In the case Of ono small company.
the Porto Rican Tobacco company. In
which they will hold V per cent. The
twenty nine individual defendants are on
Joined for three years from buying any
stock except from each other, and the
group Is thus prevented from extending
its control during that period. All parties
to the suit, and the new companies who
are made parties, are enjoined perpetual
~ from in any way effecting any com
bination between any OF the companies
In violation OF the statute BY
way OF resumption Of the old trust. Each
OF the fourteen companies 10 e~njoined
from acquiring stock In any OF the others.
All these companies are enjoined from
having common directors or officers. or
common buying or selling agents. or COM
mon offices. or lending money TO each
other.
Size Of New Companies.
Objection was made by certain !nde-
pendent tobacco companies that this set
Element was unjust because II left COM
panies with very large capital in active
business. and that the settlement that
would be effective to put all on an equal
ity would be a division OF the capital and
plant Of the trust into small fractions In
amount more nearly equal to that OF each
Of the Independent companies. This con-
tention results from a misunderstanding
Of the antitrust law and It's purpose.
1t Is not Intended thereby TO prevent the
accumulation Of large capital in business
enterprises In which such a combination
can secure reduced cost OF production.
sale and distribution. II Is directly
against such an aggregation OF capital
only when Its purpose is that OF sitting
competition. enhancing or controlling
prices and establishing a monopoly. II
we shall have by the decree defeated these
purposes and restored competition be-
tween the large units into which the cap
ital and plant have been divided. ve
nhali have accomplished the useful pur-
pose Of the statute.
]. Ia not the purpose OF the statute TO
confscate the property and capital of the
offending trusts. Methods Of punishment
by fine or Imprisonment Of the individual
offenders. by fine of the corporation. or
by forfeiture OF its goods In transporta-
ton. are provided, but the proceeding in
equity is a specific remedy to stop he
operation OF the trust by injunction and
prevent the future use Of the plant and
capital In violation OF the statute.
i venture to say that not In the history
Of American law has a decree more ef-
fective for such a purpose been entered
by a court than that against the Tobacco
trust.
Common-stocE Ownership.
1t has been assumed that the present
pro-rata and common ownership in all
these companies by former stockholders
OF the trust would insure a continuance
of the same old single control Of all the
companies into which the trust has by
decree seen disintesrated. This IL err
roneous snd 10 based upon the assumed in
efficacy and innocuousness OF judicial in
functions. The companies are enjoined
from cooperation or combination; they
have different managers. directors. pur-
chasing and sales agents. II all or any
of the numerous stockholders. reaching
into the thousands, attempt to secure
concerted action OF the companies with a
view to the control OF the market. their
number is 40 large that such an attempt
could not we'll be concealed and its prime
movers and all Its participants would be
at once subject to contempt proceedings
and imprisonment OF a summary charac-
ter. The immediate result OF the present
Stt,a ttnn u,ill pacaaaarily ha activity nv
all the companies under different man
ayers and then competition must follow.
or there will be activity by one company
and stagnation by another.
Movement for Repeal Of the Antitrust
Law.
But now that the antitrust act is seen
to be effective for the accomplishment Of
the purpose Of its enactment. we are met
by a cry from many different quarters
for its repeal. 1t IL said to be obstructive
OF business progress, to be an attempt to
restore old fashioned methods OF de-
structive competition between small units,
and to make impossible those useful COM
binations Of capital and the reduction OF
the cost of production that are essential
to continued prosperity and normal
growth.
In the recent decisions the Supreme
court makes clear that there Ii nothing
In the statute which condemns combina-
tons Of capital or mere bigness Of plant
organized to secure economy In produce
ton and a reduction Of It's cost. 1t Is only
when the purpose or necessary effect OF
the organization and maintenance Of the
combination or the aggregation OF I'm
mense size are the sitting OF competition.
actual and potential, and the enhancing
Of prices and establishing a monopoly,
that the statute 10 violated.
Lack Of pehnIteness In the Statute.
The complaint IL made of the statute
that II In not sufficiently definite in its