The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1911-12-07
First EpistIe of Mr.. Taft Deals
Altogether With the Prob
lem of Trusts.
DEFENDS SUPREME COURT

DEFENDS SUPREME COURT
Washington, Special: President Taft s
annual message, sent to congress,
dealt entirely with the trust ques-
ton. The president says that between
now and the Christmas holidays he will
send In a series of messages, each one
dealing with separate matters Of legis-
lation for the consideration of congress
this winter.
Text of the Message.
The full text Of the message Is as
follows:
To the Senate and House Of Representa-
tves:
This message is the first of several
which shall send to congress during the
interval between the opening Of its regu-
lar session and it's adjournment for the
Christmas holidays. The amount OF In
formation to be communicated as to the
operations. of the, government, the number
OF Important subjects calling for COM
ment by the executive, and the transmis-
sion to congress- of exhaustive reports OF
special commissions, make 1t impossible
to include In one message OF reasonable
ought to be brought to the attention of
the national legislature at Its first regular
session. =. =.
Supreme Court Decisions.
In May last the supreme court handed
down decisions in the suits In equity
brought by the United states to .en5oin
the further, maintenance OF the Standard
OIL trust and of the American Tobacco
trust. and to secure their dissolution. The
decisions are epoch-making and serve to
advise the business world authoritatively
Of the scope and; operation OF the anti
trust act OF 1880. The decisions do not de-
part In any substantial way from the
previous decisions of the court In con-
STRUNG and applying this important stat
further defining the already admitted ex-
ceptions to the literal construction OF the
act. BY the DEGREES, they furnish a use
ful precedent as to the proper method OF
illegal trusts. These decisions suggest
the need and wisdom OF additional or sup
Elemental legislation to make II easier tor
the entire business community to square
with the rule of action and legality thus
finally established and to preserve the
benefit, freedom and spur OF reasonable
competition without loss OF real EFFICIENCY
or progress.
No Change in the Rule.
The statute In its first section declares
to be illegal every contract. combination
In the form or trust or otherwise, or con-
spiracy, in restraint of trade or commerce
nations" and in the second, declares
guilty OF misdemeanor every person
who shall monopolize or combine or con-
spire with any other person to monopolize
any part of the trade or commerce or the
several states or with foreign nations"
In two early cases, where the statute
was invoked to enjoin q transportation
rate agreement between interstate rail-
road companies, 1t was held that 1t was
no defense to show that the agreement
| as to rates complained of was reas enable
at common law, because 1t was said that
| the statute was directed against all con-
tracts and combinations In restraint OF
| trade whether reasonable at common law
| or not. 1t was plain from the record,
| however, that the contracts complained
| Of in those cases would not have been
deemed reasonable at common law. IN
| subsequent cases the court said that the
| statute should be given reasonable con-
struction and refused to include within
| Its inhibition, certain contractural re-
straints of trade which 1t dominated as
These cases Of restraint Of trade that
| the court excepted from the operation OF
the statute were instances ices which, Iina at com
able. In the Standard Oil and Tobacco
cases therefore. the court merely adopted
the tests Of the common law. and In de-
| filming exceptions to the literal application
| Of tho statute, only substituted for the
test Of being incidental or Incorrect, that
| of being reasonable, and this, without
| varying In the slightest the actual scope
and effect of the statute. In other words
all the cases under the statute which have
now been decided would have been de.
the Say san s1n
rule at common law.
1t has been said that the court, by intro.
ducing into the construction OF the stat
| ute common law distinctions, has emas.
culated 1t. This Is obviously untrue. Sy
its judgment every contract and combi'
nation in restraint Of interstate trade
Controlling prices by sitting competition
! or OF establishing in whole or part q mo.
nopoly of such trade is condemned BY
cannot instance a case that ought to BE-
condemned under the statute which IL
not brought within Its terms as thus con
strued.
supreme court by its decision In the las
/ two cases has committed to the court the
underlined and unlimited discretion to de-
within, Within the H terms Of the statute. This il
| wholly untrue. A reasonable restraint o.
| trade at common law Is well understood
the discretion OF the court 1t must b,
| limited to accomplish the purpose OF 9
lawful main contract to which,. In order
that 1t shall be enforceable at all, It mus
that contract 1t is void
Tho test of reasonableness was never
applied by the court at common law t.
| contracts or combinations or conspiracie.
| in restraint Of trade whose purpose wa
or whose necessary effect would be t
stifle competition to control prices, o.
| eStaDllSn fnOUOpOleS. lie COURTS HeNel
assumed power to say that such contract!
| or combinations or conspiracies might b.
lawful II the parties to them were onl.
moderate in the use Of the power thu
| secured and did not exact from the pub
lie too great and exorbitant prices. 1t Il
| true that many theorists, and others en-
gagged In business violating the statute
| have hoped that some such line could b.
drawn by courts; but no court of author
ity has ever attempted 1t. Certainly Their
Is nothing In the decisions Of the lates
| theory Of judicial discretion In enforcin,
this statute can derive the slightest sane
ton.
Statute q Matter Of Growth.
We have been q years making this stat
ute effective for the purposes for which
was enacted. The Knight case was dis
couraging and seemed to remit to tn
| states the whole available power to at
, tack and suppress the evils Of the trusts
! Slowly, however, the error OF that tudg
ment was corrected, and only In the las
three or four years has the heavy han
Of the law been laid upon the great illega
combinations that have exercised such a
absolute dominion over many OF our I'm
dustries. Criminal prosecutions hav
been brought and number are pending
but juries have felt averse to convictin
for jail sentences on men or respectabl
standing in society whose ofense ha
been regarded as merely statutory. Still
as the offense becomes better understoo
and the committing OF 1t partakes NOR
OF studied and deliberate defiance of tn
law. we can be confident that Juries wi
convict individuals and that Jail sen
fences will be imposed.
Remedy BY Dissolution.