Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-12-07


ness of plant organized to secure e''"
omy ia production and n reduction oi
its cost. 1t is only when the PURPOSE
or necessary effect of the oTRah'"".,o"
ana maintenance of the cotppii'"'iou
or the aggregation of immense SIZE
the sitting OF competition. actu"' anu
potential, and the enhancing Oh p''ce'
and establishing monopoly Una. '"o
statute is violated. Mere size Is no
sin against the law The merging OF
two or more business plants necessu.r
~ eliminates competition between 'he
units thus combined, but this elmlhu'
tion is In contravention or the s'"'u'e
only when the combination ~ h''ue io'
purpose of ending this particular com.
petition in order to secure coi''o' VI
and enhance prices and create 'h"
nopoly
Lack of Defiriteness In tho statute.
The complaint is made of the stat
ute that it is not sufficiently oenhlte
in its description of that when is lot
hidden to enable business men 10 aVolo
its violation The suggestion is tha'
we may have n combination or TWO
corporations which may run on 1or
years and that subsequently tne at
torney general may concIude tnat IL
was Il violation Of the statute ana tnat
which was supposed by the combiners
TO be innocent then turns out to be
combination in violation of the statute.
The answer TO this hypothetical case
Is that when men attempt TO amass
such Stupendous capital as VIII enable
them to suppress competition. control
prices aud establish Il monopoly they
know the purpose of their acts. Men
DO not do such Il thing without having
it clearly in mind. If what they do Is
merely for the purpose of reducing the
cost OF production. without the thought
Of suppressing competition by use of the
biGnesS of the plant they are creating,
then they cannot be convicted at the
time the union is made, nor can they
re convicted later unless 1t happen
that later ON they conclude to sup
press competition and take the usual
methods for doing SO and thus estab-
liSh for themselves Il monopoly. They
can in such case hardly complain II
the motive which subsequently is dis.
closed is attributed by the court to the
original combination
New Remedies Suggested.
Much is said of the repeal Of this
statute and OF constructive legislation
intended to accomplish the purpose
and blaze clear path for honest mer-
chants and business men to follow. 1t
may he that such Il plan will be
evolved. but ! submit that the discus
Sions which have been brought out in
recent days by the fear of the con-
tnucd execution of the antitrust law
have produced nothing but gittering
generalities and have offered no line
Of distinction or rule of action as def
mite and rs clear as that which the SUI
preme court itself lays down in en-.
forcing the statute.
Supplemental Legislation Needed. Not
Repeal or Amendment.
| see no objection. and indeed | can
see decided advantages. in the enact
ana dnnouncc methods Of competition
which are unfair and are badges Of the
unlawful purpose denounced in the
antitrust law. The attempt and pur-
pose to suppress II competitor by I'M
dorSclllnG him at n price so unprofita-
bic rs to drive him out Of business or
the making of exclusive contracts with
4
Quircd to give up association with 9th
or manufacturers and numerous kin
Lred methods for sitting competition
and cffectiNg monopoly should he de-
scrihcd with sufficient accuracy in q
criminal statute on the one hand tc
enable the government to shorten Its
task by prosecuting single misdemean
ors instcnd Of m entire conspiracy and
on the other hand to serve the purpose
NJ pointing ont more In detail tc
TIE business community what must he
avoided
Federal incorporation Recommended.
In special message TO congress or
Ian. I, 1910 ventnred to point out
the disturbance to business that would
probably attend The dissolution Of these
offending trusts. | said:
But such an investigation and pos
FibIe prosecution of corporations whose
prosperity or destruction affects the
comfort not only of stockholders. but
of millions Of wage earners. employees
and associated tradesmen. must neces-
sarily tend to disturb the confidence
of the business community, to dry up
the now lowing sources of capital
from its places of boarding and pro
duce n halt in our present prosperity
that viii cause suffering and strained
circumstances among the innocent
many for the faults of the guilty few
The question which | wish in this
message to bring clearly to the con
sideraton and discussion of congress
is whether, in order to avoid such &
possible business danger, something
cannot he done by which these bust
ness combinations may be offered Z
means. without great financial dis
turhance, Of changing the character
organization and extent Of their bust
ness into one within the lines of thu
law under federal control and super
vision. securing compliance with thu
antitrust statute.
"Gcnerally in the industrial combnn
tons called trusts the principal bust
ness is the sale Of goods in many state
and in foreign markets-in other words