Bisbee daily review., 1911-12-06


 fendanis are enjoined for three years from buying any stock except from each other. and the group is thus pre- vented from extending it's control dur. Ing that period. All parties to tho suit. and the now companies who are made parties are enjoined perpctuRlly from in any way efrecting any oombi- nation between any of the companies tn violation of the statute by way oI resumption Of the old trust Each Of the fourteen cogrenios Is enjoined from acquiring stock in any of the others. All these companies arc en- ioinel from having common directors or officers. or common huying or sell ing agents, or common offices, ar lending money to each other.
 Size of New Companies.
 Objection was made by certain in this settlement was unjust because it left companies with very large cap ital in active business. and that the settlement was unjust because it lcit oo'gpanies with very large canital in active business. and that the settle ment that would be effeciica ic put all ca an edIa.'sv waald l'a 9 uir: ion O. the capital and the plant Of the trust into small fractions in amount more nearly equal Co that Of each of the independent companies This conten. ton results from a mis understanding of the antitrust law and its purpose. II 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. IL is directed against such an aggrega- ton of capital only when it's purpose is that Of stifling competition, en. hancing or controlling prices. and es- tablishing a monopoly If We shall have by the decree defeated these puc. poses and restored competition be tween the large units into which the capital and plant have been divided, We shall have accomplished the use ful purpose or the statute.
 Confiscation not the purpose
 Of the Ststute
 It is not the purpose of the statute co coniiscate the property and capt tai of the offending trusts. Methods of ! punishment by fine or Imprisonment of the individual offenders, by fine oi | the corporation or by forfeiture oi it's goods Tn transportatinn. are pro ! vided. but the proceeding in equit, i is a specific remedy to stop the opera i ton of the trust by injunction ane prevent the future use of the plant and capital in violation of the statute
 Effectiveness of Decree
 ] venture 10 say that not in the his tory Of American law has a decree more effective for such purpose beer entered by q court than that against the Tobacco trust As Circuit Judge Moves said in his Judgment approving the decree:
 The extent 10 which it has beer ! necessary to tear apart this combina ton and force it into new forms with the attendant burdens ought to dem ontrate that the federal antitrust staI Ute is a drastic statute which accom- blishes effective results; which sC long as il stands on the statute book! must be obeyed, and which cannot b' disobeyed without incurring far-reach ing penalties. And on the othe
 hand, the successful reconstruction O
 this organization should teach Jha , the effect of enforcing this statute i
  10 demolish, but to re-create in accord , ance with the conditions which tn Q congress has declared shall eXis e among the people of the Unite States"
 lt has been assumed that the pres - ent prorata and common ownershi . in all these companies by formIe - stockholders of the trust would insur s a continuance Of the same old singl - control or all the companies int - which the trust has by decree bee
 disinJegrated. This is erroneous an
 is based upon the assumed inefficac y and innocuousness Of judicial injunt ; tions. The companies are enjoine l. from cooperation or combination 6 they have different managers, diret l, tors. purchasing and sales agents. 8 all or many of the numerous stocl F holders, reaching into the thousand e attempt to secure concerted actio d of the companies with a view to th r. control of the market, their Eumbf l. is so large that such an attempt coul Q not well be concealed, and its prim l. movers and all it's participants woul 5, be at once subject 10 contempt pr r. Ceedings and imprisonment Of a sun q mary character. The immediate 7 }. sult of the present situation will ne e essarily be activity by all the cor !. panies under different managers. an D. then competition must follow, or thel n will be activity by one company an D. stagnatioI by another. Only a sho a time will inevitably lead to a chanl n iu ownership of the stock, as will i ,i evitably lead to change in Owne Ji ship of the stock, as all OppOrtuni ,f for continued cooperation must disa
 pear. Those critics who speak of tn ,f disintegration in the trust as a me ie change Of garments have not giv' n. consideration to the inevitable wOr h. ing of the decree and understaI i. little the personal danger Of attemI ,t ing to evade or set at naught the st Ie emn injunction Of a court whose c n. ject is made plain by the decree al n whose inhibitions are set forth with .r detail and comprehensiveness une er ampled in the history Of equity iur ar prudence.
 ;c Voluntary Reoreanizations Of
 IT, Other Trusts at liar Id The effect of these two decisio Q has led to decrees dissolving the co ,v bination of manufacturers of elecu ts lamps. a southern wholesale grocel .f. association. an interlocutoTy deer d against the powder trust with diri