Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-12-05
MESSAGE OF THE PRESIDENT.

MESSAGE OF THE PRESIDENT
Continued from page 81
ganization should teach that the effect
Of enforcing this statute is not to de
stroy, but to reconstruct: not to de-
molish, but to recreate in accordance
with the conditions which the congress
has declared shall exist among the
people Of the United States''
Common Stock Ownership.
It has been assumed that the pres.
ent pro rata and common ownership In
oil these companies by former stock.
holders Of the trust would insure q
continuance Of the same old single con.
troll Of all the companies into which
the trust has by decree been disinte-
grated. This is erroneous and is based
upon the assumed ineff1cacy and innoc.
uousness Of judicial injunctions. The
companies are enjoined from co-opera.
ton or combination: they have differ.
ent managers. directors, purchasing
and sales agents. If all or many Of
the numerous stockholders. reaching
into the thousands. attempt to secure
concerted action Of the companies with
view to the control Of the market
their number is 50 large that such an
attempt could not we'll be concealed.
and its prime movers and all its partic-
ipants would be at once subject to con-
tempt proceedings and Imprisonment
Of summary character The immedi.
ate result of the present situation will
necessarily he activity by all the CON-
panies under different managers, and
then competition must follow or there
will be activity by one company and
stagnation by another. Only short
time will inevitably lead to change
in ownership Of the stock. as all op-
portunity for continued cooperation
must disappear. Those critics who
speak Of this disintegration in the trust
as mere change Of garments have not
given consideration to the inevitable
working of the decree and understand
little the personal danger Of attempt
ing to evade or set at naught the SOL
emn Injunction Of court whose object
Is made plain by the decree and whose
inhibitions are set forth with detail
and comprehensiveness unexampied in
the history Of equity Jurisprudence.
Voluntary Rsorsanizations Of Other
Trusts at 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, IN introductory decree
against the powder trust, with direc-
lions by the circuit court compelling
dissolution, and other combinations Of
a similar history are now negotiating
with the department Of Justice looking
to a disintegration by decree and re-
organization in accordance with law.
It seems possible to bring about these
reorganizations without general busi'
ness disturbance.
Movement For Repeal Of the Anti.
trust Law.
But now that the antitrust act is
seen to be effective for the accomplish
ment Of the purpose Of its enactment
we are met by cry from many differ.
ent quarters for its repeal. 1t is said
to be obstructive Of business progress.
to be an attempt to restore old fash.
toned methods of destructive competi-
ton between small units and to make
impossible 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 moth.
ing in the statute which condemns
combinations Of capital or mere big
ness Of plant organized to secure econ
omy in production and reduction Of
its cost. 1t IN only when the purpose
or necessary effect Of the organization
and maintenance of the combination
or the aggregation of immense size are
the sitting Of competition. actual and
potential. and the enhancing Of prices
and establishing u monopoly that the
statute IL violated. Mere size IL no
sin against the law. The merging Of
two or more business plants necessarf-
~ eliminates competition between the
units thus combined, but this elimina-
ton is in contravention Of the statute
only when the combination is made for
purpose Of ending this particular CON-
petition in order to secure control of
and enhance prices and create mo-
nopoly.
Lack Of Def;nitsness In the Statute.
The complaint is, made of the stat
ute that it is not sufficiently definite
in its description of that which Ia for
hidden to enable business men to avoid
its violation. The suggestion Is tina:
we may have 4 combination Of two
which may run on for
years and that subsequently the at
torney general may conclude that it
was a violation of the statute and that
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