Lincoln County times. (Jerome, Idaho) 1911-1919, 1911-12-07

Its unlawful dominion. Under the de-
cree these defendants will hold amounts
or stock in the various distributee COM
panies ranging from Al per cent. as
maximum to 2S1z per cent. as a minimum,
except In the case OF one small company.
the Porto Rican Tobacco company. in
which they Will hold As per cent. The
twenty-nine individual defendants are en-
joined for three years from buying any
STOCK except from each other and the
group Is thus prevented from extending
us control during that period. All parties
10 the suit. and the new companies who
are made parties. are enjoined perpetual
~ from in any way effecting any com
Dlnation between any of the companies
IN violation OF the statute by
way OF resumption OF the old trust. Each
or the fourteen companies is enjoined
from acquiring stock in any OF the others.
All these companies enjoined from
having common directors or officers, or
common buying or selling agents. or com
mon offices, or lending money to each
other.
Size of New Companies.
Objection was made by certain indie
pendent tobacco companies that this set
tlement was unjust because 1t left COM
panies with very large capital in active
business, and that the settlement that
would be effective to put all on an equal
plant Of the trust into small fractions in
amount more nearly equal to that of each
or the Independent companies. This con-
tention results from a misunderstanding
OF the antitrust law and its purpose
1t is not intended thereby to prevent the
accumulation OF large capital in business
enterprises in which such combination
can secure reduced cost of production,
sale and distribution. 1t is directly
against such an aggregation of capital
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
ital and plant have been divided, we
shall have accomplished the useful pur-
pose Of the statute.
Confiscation Not the Purpose Of the
Statute.
II ia not the purpose OF the statute to
coniiscate 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 a 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.
venture TO say that not in the history
OF American law has decree more ef-
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 dsntegrated This is err
| roneous end 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. II all or any
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 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 short
| time Will lneNltaDlN leau TO II cudnSt III
ownership OF the stock. as all oppor-
tunity for continued cooperation must
| disappear
Movement for Repeal Of the Antitrust
Law.
| But now that the antitrust act is seen
| TO be effective for the accomplishment of
| the purpose of its enactment. We are met
| by 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-fashoned methods OF de-
| structive competition between small units
| and to make impossible those useful COM
binations of capital and the reduction of
the cost OF production that are essential
to continued prosperity and normal
| growth.
| In the recent decisions the Supreme
| court makes clear that there is nothing
I'm the statute which condemns combina-
| lions OF capital or mere bigness OF plant
| organized to secure economy in produce
ton and q reduction OF Its cost. 1t is only
| when the purpose or necessary effect OF
| the organization and maintenance OF the
| combination or the aggregation OF i'm
mense size are the sitting OF competition.
actual and potential. and the enhancing
OF prices and establishing a monopoly.
! that the statute is violated Mere size
| is no sin against the law The merging
| OF two or more bushes plants necessarily
eliminates competition between the units
thus combined. but this elimination is in
contravention OF the statute only when
the combination is made for purpose OF
ending this particular competition in or
der 10 secure control OF. and enhance.
prices and create a monopoly.
Lack Of pefinlteness In the Statute.
The complaint is made OF the statute
TINT II is not sufficiently definite in its
description OF that which is forbidden to
enable business men TO avoid Its viola
tlon. The suggestion is. that we may
have a combination OF two corporations.
which may run on for years. and that
subsequently the attorney general may
conclude that II was a violation OF the
statute, and that which was supposed by
the combiners to be inocent then turns
out TO be a combination In violation of
the statute The answer TO this hypo-
thetical case is that when men attempt
to amass stupendous capital as Will enable
them to suppress competition. control
prices and establish n monopoly they
know the purpose OF their acts. Men do
not do such thing without having It
clearly In mind.
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