The Meridian times. (Meridian, Idaho) 1909-1938, 1911-12-08

| cree +ba.a '4iillHon. Under the de-
~ 'HeSe defendants will hold an,ouato
vi STOCK in the various dIs+rfh'+. ounts
nna,tts ranging from Al per cent 40
LINT TO 812 per cent. as a rnin,r1I,,,
49, III the case of one small conorar-,
III olto Rican Tobacco comnant -
t,,nt Sn tney will hold As Der cent nh
t.ty nine individual defendan+s oro -,
So lot three years from buving any
yro,lr TNcept from each other. and the
ifs - mus prevented from extending
m ~ VI u"Flng that period. All parties
are roado ana the new companies who
u, s Iaue parties, are enjoined perpetmal-
~ from In any way effectinp az go
~ ion between any of the commands
VOCATION Of the statute hv
"' vi resumption Of the old trust Each
- fourteen companies Is enioined
1 AZ acquiring stock in any of the others
Ihese companies are enioined from
iaSIhs common directors or officers, or
SOliiillon buying or selling agents Sr com
n+bo ot"ces' or lending money to each
Size of New Companies.
objection was made by certain indie
pehuent tobacco companies that this SET
'lement was unjust because If left corn
panles with very large capital in active
BUSINESS, and that the settlement that
would De effective to put all on an equal
ny would be division of the capital and
pant Oh the trust into small fractions In
amount more nearly equal to that of each
OF the Independent companies, This CON
tention results from a MISUNDERSTANDING
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. It Is directly
against such an aggregation of capitaI
only when its purpose is that of sitting
competition, enhancing or controlling
prices and establishing a MONOPOLY. II
we shall have by the decree defeated these
purposes and restored competition be-
tween the large units into which the cap
ltal and plant have been divided, we
shall have accomplished the useful pur-
pose of the statute.
Contiscation Not the Purpose of the
Statute.
1t is not the purpose of the statute to
contisCate the property and capital of the
offending trusts. Methods of punishment
by fine or imprisonment of the individual
offenders. by fine of the corporation, or
by forfeiture of its goods in transporta-
ton, are provided, but the proceeding in
equity is specific remedy to stop the
operation OF the trust by injunction and
prevent the future use of the plant and
capital In violation Of the statute.
I venture to say that not in the history
of American law has a decree more eff
fective for such purpose been entered
by court than that against the Tobacco
trust.
common-stock Ownership.
It has been assumed that the present
pro-rata and common ownership in all
these companies by former stockholders
Of the trust would insure a continuance
of the same old single control Of all the
companies into which the trust has by
decree been disintegrated. This is err
roneous and Is based upon the assumed in
efficacy and innocuousness Of judicial In
functions The companies are enjoined
from cooperation or combination; they
have different managers, directors, pur-
chasing and sales agents. If all or any
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 so large that such an attempt
could not we'll be concealed and Its prime
movers and all its participants would be
at once subject to contempt proceedings
and Imprisonment of a summary charac-
ter The immediate result of the present
situation will necessarily be activity by
all the companies under different man
ayers and then competition must follow,
or there will be activity by one company
and stagnation by another. Only snort
tina will inevitably lead to change In
ownership of the stock. as all oppor-
tunity for continued cooperation must
disappear.
Movement for Repeal Of the Antitrust
Law.
Rut now that the antitrust act Is seen
IN he effective for the accomplishment OF
the nurpose of its enactment, we are met
hv a cry from many different quarters
for its repeal 1t is said to be obstructive
Of business progress, to be an attempt TO
restore old-fashioned methods OF de-
structive competition between small units
and to make impossible those useful COM
hinations Of capital and the reduction OF
the cost Of production that are essentiaI
TO continued prosperity and NORMAN
growth. a.. s,o
In the recent decisions the supreme
,o,,r+ makes clear that there Is nothing
~ - s+a+,,ts which condemns combina-
- ~ canital or mere bigness OF plant
or.anized to secure economy IN produc-
a., nd a reduction Of Its cost. II IS only
S,Lar the purpose or necessary eHect OF
w 49, 80 ,I1atIon and maintenance OF the
Combination or the aggregation OF I'M
.,,ansa size are the sitting OF competition,
no,rsI and potential. and the enhancing
~ nrIces and establishing a monopoy'
80 the statute is violated. Mere SIG
81, against the law. The merging
70 ~. .,,,o ~ more buslnes plants necessarily
Vi W connection between the units
.a,,binsd but this elimination Is IN
contravention Of the statute oiILy ~
tSo combination is made TOT purpose Vi
ending this particular compeu.ion III
Sar 10 secure control or ana eiii''e'
sioos and create a monopoly
sek of peffniteness In the Statute
Tho complaint is made Of the statute
:, is not sufficiently definite IN us
! ,ne-,n+,on of that which Is tornldaen, 10
desc S,,siness men to avoid Its VIOLA
ena0'e Tns suggestion Is, that we may |
toh. domination Of two corporations, |
nave -, run on for ye7rs, and that
winch ci'artlv the attorney general may |
that II was a violation Oh the
cohcl md that which was supposed os |
STATUS, Si,ars TO be inocent then TURNS
tne ~ he a combination In Vloiati1m u
out W - The answer to this hyPo
t tne case Is that when men atspS
theu stupendous capital as VIII enao nI
70 20 suppress competition con
them "a establish a monopoly thsy
p..s ,rs nurpose Of their acts' Men
KNOW s,ch a thing without having "
clearly In mind.
New Remedies susses'eo