The Raymer enterprise., 1911-12-07


has emasculated It. This is obviously
untrue. BY Its Judgment every con-
tract and combination In restraint Of
interstate trade made with the purpose
or necessary effect Of controlling prices
BY stifing competition. or Of establish
Ing In whole or In part a monopoly of
such trade. is condemned by the stat.
ute. The most extreme critics cannot
Instance case that ought to be con.
demned under the statute which is not
brought within its terms as thus con-
strued.
The suggestion is also made that the
Supreme court by Its decision In the
last two cases has committed to the
court the underlined and Unlimited dis
cretion TO determine whether a case
OF restraint OF trade is within the
terms OF the statute. This is wholly
untrue. A reasonable restraint Of
trade at common law Is we'll under
stood and is clearly defined 1t does
not rest in the discretion OF the court.
1t must be limited to accomplish the
purpose Of a lawful main contract to
which. In order that 1t shall be en-
forceable at all. 1t must be incidental.
II 1t exceeds the needs Of that contract
1t Is void.
The test OF reasonableness was
never applied by the court at com.
mon-law to contracts or combinations
or conspiracies In restraint OF trade
whose purpose was or whose neces.
sary effect would be to stife competi.
ton, to control prices. or establish
monopolies. The courts never as
sumed power to say that such. con-
tracts or combinations or conspira.
cies might be lawful II the parties to
them were only moderate In the use
OF the power thus secured and did
not exact from the public too great
and exorbitant prices. 1t is true
that many theorists. and others en-.
gagged In business violating the
statue. have hoped that some such
line could be drawn by courts: but
no court Of authority has ever at
tempted It. Certainly there is moth
Ing In the decisions Of the latest two
cases which should be n dangerous
theory Of judicial discretion In en-
forcing this statue can derive the
slightest sanction
Force and Effectiveness Of Statute q
Matter Of Growth.
We have been twenty-one years
making this statue effective for the
purposes for which II was enacted.
The Knight case was discouragIng
and seemed to remit to the states the
whole available power to attack and
suppress the evils OF the trusts.
Slowly. however. the errors Of that
judgment was corrected. and only in
the last three or four years has the
heavy hand OF the law been laid upon
the great Illegal combinations that
have exercised such an absolute do.
m!nion over many OF our Industries,
Criminal prosecutions have been
brought and number are pending.
but juries have felt averse to convict.
Ing for jail sentences. and judges have
been most reluctant to impose such sen.
fences on men OF respectable standing
In society whose ofYense has been
regarded as merely statutory. Still.
rs the offense becomes better under.
stood and the committing OF II par.
takes more Of studied and deliberate
defiance OF the law. we can be conf.
dent that juries will convict ,ndivid.
uals and that Jail sentences will be
imposed
The Remedy In Equity by Dissolution.
In the Standard OIL case the Su,
preme and circuit courts found the
combination to be monopoly OF the
Interstate business Of refining. trans.
porting. and marketing petroleum and
Its products, effected and maintained
through thirty-seyen different cor.
porations. the stock OF which was
held by New Jersey company. |,
In effect commanded the dissolution
Of this combination. directed the
transfer and pro.rata distribution by
the New Jersey company OF the
stock held by It In the thirty.seven
corporations to and among It's stock
holders. and the corporations and In
dlvidual defendants were enjoIned
from conspiring or combining to re-
store such monopoly: and all agree
ments between the subsidiary corpor
ations tending to produce or bring
abou, further violations OF the nc,
were enjoined.
In the Tobacco case, the cour,
found that the individual defendants
twentynine In number. had been en-
gagged In successful effort to nc
quire complete dominion over the
manufacture. sale, and distribution o,
tobacco In this country and abroad
and that this had been done by com
blnations made with purpose ant
effect to stihe competition. contro
prices. and establish n monopoly. mol
only In the manufacture Of tobacco
but also Of tin.foll and licorice USED
In Its manufacture and Of Its product.
OF cigars. cigarettes. and snutYs Tn,