The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-12-06


Z settlement was unjust because "a Left
companies with very large capital I'm
active business. and that the settle
( ment that would be effective 10 put nit
! en- an equality would be a division OF
, the capital and plant OF the trust into
small fractions in amount more nearly
4 equal TO that OF each OF the indepen-
dent companies. rhis contention re-
suits from a misunders.anding OF the
antitrust law and Its purpose. IL ~
not intended thereby 20 prevent the
accumulation Of large capital In husi-
ness enterprises In which such n COM
I hination can secure reduced cost OF
I production. sale. and distribution. IL
IL directed against such an aggrega-
tion OF capital only when its purpose
~ that or sitting competition, en-
hancfng or controlling prices aud a.
tablishing a monopoly. N we shall
have by the decree defeated these pur-
! poses and restored competition be-
tween the large units into which the
capital ard plant have been divided.
we shall have accomplished the use
ful purpose OF the statute.
Conhscation Not the Purpose at th.
statute.
IL Is not the purpose OF the statute
to e9nhscate the property end capita
OF the orencing trusts. Methods or
punishment by fine or imprisonment
OF the individual offenders by fine OF
the corporation or by forfeiture OF It's
goods In transportation. arc provided.
cine remedy TO stop the operation 81
the trust by Injunction and prevent
the future use OF the plant and cap
ital In violation OF the statute.
Effectiveness OF Decree.
venture to say that not In the his
tory of American law has a decree
more effective for such purpose been
entered by court than that against
the Tobacco Trust. As Circuit Judge
Moves said in his Judgment approving
the decree:
"The extent 10 which II has been
necessary 10 tear apart this combina-
the attendant burdens ought to DEM
onstrate that the federal antitrust
statute is drastic statute which ac-
complishes effective results; which so
long as IL stands on the statute books
.nust be- obeyed and which can not he
lsooeycd without mourning far-reach-
Ing penalties And. on the other hand
the successful reconstruction OF this
oTga nizatioa should teach that the
euect or enforcing this statute Is not
TO destroy. but 10 reconstruct; not TO
demolish. but 70 re-create In accord
ance with the conditions which the
congress has declared shall exist
States"
Common-stock Ownership.
IL has been assumed that the pres
ent pro rata and common ownership I'm
All these companies by former stock
holocrs OF the trust would insure
continuance OF the same old single con-
troll or all the companies into which
the trust has by decree been disinteg-
rated This Is erroneous and is based
upon the assumed inefncacy. and in
nervousness OF judicial injunctions
The companies are enjoined from CO.
operation or combinations. they have
dlHerent managers, directors. purchas-
ing and sales agents. II all or many
OF the numerous stockholders. reaching
into the thousands, attempt to secure
concerted action OF the companies with
a view to the control Of the market.
their number Is so large that such an
attempt could not well be concealed.
and its prime movers and all it's par
Elephants would be at once subject TO
contempt proceedings and imprison-
ment or summary character. The inn
mediate result OF the present situation
will necessarily be activity by all the
companies underdifferent managers and
then competition must follow. or there
viii be activity by one company and
stagnation by another Only a short
time VIII inevitably lead to change
In ownership OF the stock as all OPP
portunity for continued cooperation
must disappear Those critics who
speak OF this disintegration in the
trust as a mere change OF garments
have not given consideration to the
inevitable working OF the decree and
understand little the personal danger
OF attempting TO evade or set at naught
the solemn Injunction of a court whose
object is made plain by the decree and
whose inhibitions are set forth with
detail and comprehensiveness unexam-
pied in the history OF equity jurispru-
dence.
Voluntary Resrwanisstions OF other
Trusts Mt Hand.
The effect OF these two decisions has
led to DEGREES dissolving the combina
ton OF manufacturers OF electric
lamps, "A southern wholesale grocers
association. an interlocutory decree
against the powder trust with direc-
lions by the circuit court compelling
dissolution, and other combinat ions OF
a similar history are now negotiating
with the department of Justice looking
TO disintegration by decree and re-
organization in accordance with law.
II seems possible 20 bring about these
congratulations without general bust
ness disturbance.
Movement for Repeal Of the Antitrust
! But now y..r that the antitrust asIot,,st
for the accomplishment of the
purpose for It's enactment we
are met by a cry from many different
quarters for it's repeal. 1t is said to be
obstructive OF business progress, TO be
an attempt to restore old-fashioned
me thods OF destructive competition be-
tween small units, and to make i'm
possible those useful combinations OF
capital and the reduction of the cost
OF production that are essential to con-
tinued prosperity and normal growth.
In the recent decisions the supreme
court makes clear that there is nothing
in the statute which condemns combi-
nations OF capital or mere bigness of
Plant organized to secure economy in
production and a reduction of It's cost.
1. Is only when the purpose or neces-
sary effect Of the organization and
maintenance OF the combination or the
aggregation OF Immense size are the
sitting OF competition. actual and po-
tential. and the enhancing OF prices
anil establishing a monopoly, that the
statute is violated. Mere size is no sin
against the law. The merging OF two
or more business plants necessarily
eliminates competition between the
units thus combined, but this elimina-
tion Is in contravention OF the statute
oniy when the combination is made for
the purpose OF ending this particular
competition in order 10 secure con-
troll of. and enhance, prices and create
monopoly.
LHck OF Dehniteness I'm the Statute.
The complaint is made or the statute
that IL is not sufficiently definite In it's
description of that which is forbidden.
to enable business men TO avoid its
violation The suggestion Is, that we
may have combination OF two cor
porations, which may run on for years,
and that subsequently, the attorney
general may conclude that u was
Violate Of the statute, and that which
was supposed by the combiners to be
binB ton in violation OF the statute.
Th3 answer 10 this hypothetical case
Is that when men attempt to amass
SuCn stupendouS capital as will enable