Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-12-05


cept from each other. and the group is
thus prevented from extending its con-
troll during that period. All parties to
the suit and the new companies who
are made parties are enjoined perpet-
ually from in any way effecting any
combination between any Of the COM
panies in violation of the statute by
way of resumption of the old trust.
Each of the fourteen companies Is en-
Joined from acquiring stock in any OF
the others All these companies are
enjoined from having common direc-
tors or officers. or common buying or
selling agents. or common Offices. or
lending money TO each other.
SIZE OF NEW COMPANIES.
Objection was made 10y certain in
dependent tobacco companies that this
settlement was unjust because it left
companies with very large capital in
active business and that the settle
! ment that would he effective to put all
on an equality would be division of
the capital and plant of the trust into
small fractions in amount more near
! " equal to that of each of the indie
4 pendent companies. This contention
results from misunderstanding of
/ the antitrust law and its purpose. II
| is not intended thereby TO prevent the
] accumulation of large capital in bust
ness enterprises in which such q COM
| bination can secure reduced cost Of
production. sale and distribution. 1t
/ is directed against such an aggrega-
ton of capital only when its purpose
is that of sitting competition, enhanc-
ing or controlling prices and establish
ing monopoly. If we shall have by
the decree defeated these purposes
and restored competition between the
large units into which the capita! and
plant have been divided we shall have
accomplished the useful purpose of
the statute.
1t is 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 transportation are provided.
but the proceeding in equity is n spe-
cific remedy to stop the operation Of
the trust by injunction and prevent
the future use of the plant and capital
iniviolatiOn of the statute.
! venture to say that not in the his
tory of American law has q decree
more effective for such n purpose been
entered by n court than that against
the tobacco trust As Circuit Judge
NOyes said in his judgment approving
the decree:
| THE extent to which ii has been
necessary 70 tear apart this combina-
ton and force it into new forms with
the attendant burdens ought to demon
strate that the federal antitrust statute
is n drastic statute which accOmpliShes
! effective results. which so long as il
stands on the statute books must be
obeyed and which cannot be diSobey
ed without mourning farreaching pen
alties. And. on the other hand. the
successful reconstruction of this or.
ganization should teach that the effect
Of enforcing this statute is not to de
stroy. but to reconstruct: not to de
molish, but to recreate in accordance
with the conditions which the congress
has declared shall exist among the
people Of the United Stntes"
COMMON STOCK OWNERSHIP.
1t has been assumed thar the pres
ent pro rata and common ownership il
all these companies by former stock
holders of the trust would insure 6
continuance OF the same old single con
troll of all the companies into which
the trust has by decree been disinte
grated. This is erroneous and is baset
upon the assumed ineficacy and innoc
uOusness of judicial iDiunctions Tht
companies are enjoined from co-opera
ton or combination; they have differ
ent managers. directors. purchasin,
and sales agents. II all or many o.
the numerous stockholders. reaching
into the thousands. attempt to secur,
concerted action Of the companies Will
view to the control of the marke
their number is so large that such al
attempt could not we'll be concealed
and its prime movers and all its partic
ipants would be at once subject to con
tempt proceedings and Imprisonment
Of summary character. The immedi
ate result Of the present situation will
necessarily be activity by all the com
panies under different managers. ant
then competition must follow or Their
will be activity by one company an,
stagnation by another. Only a shor
time will inevitably lead to a chang
: In ownership or the stock. as all op
portunity for continued cooperation
must disappear. Those critics WHIT
speak of this disintegration in the trus
as mere change of garments have no
, given consideration to the inevitabl,
working Of the decree and understand
: little the personal danger Of attempt
: ing to evade or set at naught the sol
: emn Injunction Of court whose objec
: Is made plain by the decree and who's
: fnhibitions are set forth with a detail
; and comprehensiveness unexampled il
E the history of equity Jurisprudence.
The effect of these two decisions hal
led to DEGREES dissolving the combina
ton Of manufacturers of electri
lamps, a southern wholesale grocers
! association, an introductory deere
, against the powder trust, with direc
: tons by the circuit court compelling
i. dissolution and other combinations n