El Paso herald. (El Paso, Tex.) 1901-1931, 1911-12-05
ness unezampled in the history Of equi-
- Voluntary 81 ITsiIgS' ReOrganinatiOns.

ness unexampled in the history Of equt-
~ Jurisprudence.
Voluntary ReOrganizatiOns.
The effect of the two decisions has
led to DEGREES dfssoIving the cOmbina-
ton Of manufacturers Of electric lamps,
a southern wholesale grOcers' assocla-
IiOni an introductory decree against
the Powder trust with directions by the
circuit court compelling dissolution ana
other com binations Of similar hlsIo-
~ are now negotiating with the Qe-
partment of justice looking to dlsln-
tegratiOn by decree and reorganization
in accordance with law. 1t seems pos
sible to bring about these reorganlza-
lions without general business disturb
ance.
Movement for Repeal Of Law.
But now that the anti trust act Is
seen to be effective for the accom-
menL we are met by cry from many
different quarters for its repeal. 1t IS
said to be obstructive Of business pro-
gress, to be an attempt to restore olo
fashioned methods of destructive COM
petition between small units, ana TO
make impossible those useful comblna-
tiOns OF capital and the reduction OF the
cost OF production that are essential 70
continued prosperity and normal
growth.
In the recent decisions the supreme
court makes clear that there is nothing
in the statute which condemns comDlna-
organized to secure economy IN produc-
ton and a reduction of its cost. 1t Is
only when the purpose or necessary Ell
feet of the organization and ma1nten-
ance Of the combination or the aggrega-
ton Of immense size are the stirling
Of competition actual and potential
and the enhancing of prices and estao-
fishing monopoly, that the statute IS
violated.
Mere size is no sin against the law.
The merging OF two or more business
plants necessarily eliminates ccmpe-
tition between the units thus combined
but this elimination is in contraVentiOn
Of the statute only when the comblna-
ton is made for the purpose OF ending
this particular competition in order TO
secure control of, and enhance, prices
and create a monopoly.
Lack Of Definiteness.
The complaint is made Of the stat
ute that it is not sufficiently detlnlIe
In its description of that which is for
hidden, to enable business men to avoid
its violation. The suggestion 1s,Othat
We may have combination OF Two
corporations, which may run on Tor
years, and that subsequently the aIIOI-
ney general may conclude that It was
violation of the statute, and that which
was supposed by the cOmbiners to be
innocent then turns out to be combi-
nation in violation Of the statute. the
answer to this hypothetical case is that
when men attempt to amass such stu
pendOus capital as will enable them to
establish a monopoly, they know the
purpose Of their acts Men do not do
such a thing without having it clearly
in mind If what they do is merely for
the purpose of reducing the cost, OF pro-
ductiOn, without the thought OF sup
pressing competition by use of the big
ness Of the plant they are creating
then they can not be convicted at the
time the union is made, nor can they
be convicted later, unless it happen that
later on they conclude to suppress com
petition ana take the usual methods
for doing so, and mus estaDIlsn Tor
themselves a monopoly. They can, In
such a case, hardly complain If the
motive which subsequently is disclosed
is attributed by the court to the origin
al combination
New Remedies Suggested.
Much IS said of the repeal OF this
statute and of constructive legislation
intended to accomplish the purpose and
blaze a clear path for honest merchants
and business men to follow 1t may be
that such a plan will be evolved. but l
submit that the discussions which have
been brought out in recent days by the
fear of the continued execution OF the
anti trust law have produced nothing
but glittering generalities and have OF
fered no line Of distinction or rule OF
action as definite and as clear as that
which the supreme court itself lays
down in enforcing the statute
Legislation Needed.
I see no Ob1ectiOn-and indeed can
see decided adYantages-in the enact
ment Of a law which shall describe ana
denounce methods Of competition which
are unfair and are badges of the unlaW-
ful purpose denounced in the anti trust
law. The attempt and purpose to sup
press = competitor by underselllng MN
at a price so Improbable as to drive
him out of business, or the making OF
exclusive contracts with customers IN
der which they are required to give up
association with other manufacturers
and III rn~ =
ling competition and effecting monopO-
", should be described with sufficient
accuracy in a criminal statute on the
one hand to enable the government to
shorten its task by prosecuting single
misdemeanOrs instead OF an entire con-
spiraCy, and, on the other hand, 10
serve the purpose Of pointing out more
in detail to the business community
what must be avoided
Federal Incorporation Recommended.
In special message to congress on
January Z, 1910, I ventured to point out
the disturbance to business that would
probably attend the dissolution Of these
offending trusts / said
But such an investigation and posi-
bic prosecution Of corporations whose
prosperity or destruction affects the
comfort not only Of stockholders but
Of millions Of wage earners, employees,
and associated tradesmen must neces-
sarily tend to disturb the confidence
OF the business community, to dry up
its places of boarding, and produce q
halt in our. present prosperity that will
cause suffering and strained circum-
stances among the innocent many for
the faults Of the guilty few. The ques
ton which I wish in this message to
bring clearly to the consideration and
discussion Of congress is whether, in
Ordder to avoid such a possible business
danger, something cannot be done by
which these business combinations may
be offered a means, without great fl
nancial disturbance, Of changing the
character, organization, and extent OF
their business into one within the lines
of the law under federal control and SUI
pervision, securing compliance with the
Generally, in the industrial combi-
anti trust statute.
nations called trusts the principal
business is the sale of goods in many
states and in foreign markets. in other
words, the interstate and foreign bust
ness far exceeds the business done IN
any one state. This fact will justify
the federal government in granting a
federal charter to such a combination to
make and sell in interstate and foreign
commerce the products of useful manu-
facture under such limitations as will
secure a compliance with the anti trust
law. 1t is, possible so to frame stat
ute that while il offers protection to a