The Lynden tribune. [volume] (Lynden, Wash.) 1908-current, 1911-12-14

clearly defined. 1t does not rest in the
discretion of the court. 1t must he
limited to accomplish the purpose of
lawful main contract to which in order
that it shall be enforceable at all 1t
must be incidental. If it exceed the
needs of that contract it is void.
The test Of reasonableness was mover
applied by the court at comman law
to contracts or combinations or CON
spiracies in restraint of trade whose
purpose was or whose necessary effect
would be to stifle competition, 70 ron.
troll prices or establish mononolies.
The courts never assumed power to
say that such contracts or combina-
lions or conspiracies might be lawful
If the parties to them We're only mod
crate in the use Of the power TINS Sc
cured and did not exact from the pub-
lie too great and exOrbitant prices. 1t
is true that many theorists and Others
engaged in business violating the stat.
ute have hoped that some such line
could be drawn by courts, but no court
of authority has ever attempted it.
Certainly there is nothing in the deci-
sions of the latest two cases from
which such a dangerous theory of ju-
dicial discretion in enforcing this stat
ute can derive the slightest sanction.
Force and Effectiveness of stafGts
Matter Of Growth.
We have been twenty one years max
ing this statute effective for the pur-
poses for which it was enacted. The
knight case was discouraging and
seemed to remit to the states the whole
available power to attack and suppress
| the evils of the trusts. Slowly. howev-
er, the error Of that Judgment was cor
rected, and only in the last three or
four years has the heavy hand Of the
law been laid upon the great illegal
combinations that have exercised such
an absolute dominion over many of our
industries. Criminal prosecutions have
been brought, and number are pend
ing, but juries have felt averse to con-
victing for Jail sentences and Judges
have been most reluctant to impose
such sentences on men of respectable
standing in society whose ofense has
been regarded as merely statutory.
Still, as the Offense becomes better I'M
derstOod and the committing Of Il par
takes more Of studied and deliberate
defiance of the law we can be ton6-
dent that juries will convict ndEidu-
ais and that Jail sentences will i'm
posed.
The Remedy In Equity by Dsso tien.
In the Standard Oil case the So RENE
and circuit courts found the col bna-
ton to be a monopoly Of the int{ state
business Of refining, transportil and
marketing petroleum and Its PR uets,
effected and maintained throug thir
ty-seven different corporatsn the
stock of which was held by al Ter
sey company, It in effect Co EhN
the dissolution of thiA col1ospk {e IT.
rected the transfer and pro IA Nail h,J
button by the New Jersey confnyF
the stock held by it in the thirt sefen
corporations to and among IL Nock-
holders, and the corporations Jhdindi-
yidual defendants were enjOimd from
conspiring or combining to restore
such monopoly, and all agreement; be-
tween the subsidiary corporations end
ing to produce or bring about further
violations Of the act were enjoined
In the tobacco case the court found
that the individual defendants, twen-
ty-nine in number, had been engaged
in a successful effort to acquire COM
,,1n niV,fA hn mo puf ap
sale and distribution of tobacco in this
country and abroad and that this had
been done by combinations made with
a purpose and effect to stifle COMPETE
ton, control prices and establish a
monopoly, not only In the manufacture
of tobacco. but also of tin foil and lie
orice used in its manufacture and of
its products Of cigars. cigarettes and
snuffs. The tobacco suit presented a
far more complicated and difficult case
than the Standard Oil suit for a decree
which would effectuate the will Of the
court and end the violation of the stat
ute. There was here no single hold
ing company, as In the case of the
Standard Oil trust. The main company
was the American Tobacco company.
: a manufacturing, selling and holding
) company. The plan adopted to de-
) stroy the combination and restore COM
petition involved the redivision Of the
capital and plants Of the whole trust
between some Of the companies con-
shutting the trust and new companies
organized for the purposes Of the de-
cree and made parties to 1t and mum
boring. new and old, fourteen.
Situation After Readiustr,snt
The American Tobacco company
(old), readjusted capital 800 100000;
the Lggett & Meyers Tobacco company
new. capital SGT ,OOOO 600; the ?. Loril-
lard company new, capital $4,000
GOO, and the Il. J. Reynolds Tobacco
company (old), capital $7,525 900, are
chiefly engaged in the manufacture
and sale Of chewing and smoking to-
bacco and cigars. The former one tin
foil company is divided into two. one
OF $s25.OOO capital and the other of
$4oo.OOO. The one snuff company Is
divided into three companies. one with
capital Of $4,000, 900, another with a
capital Of $S,OOO,OOO and third with
a capital Of $S,0OO,OOO. The llcorice
companies are two, one With a capital
OF $o,75s.3OO and another with capt
tai OF $2,OOO,OOO. There il also the
british-American Tobacco company.
BRUSH corporation. doing business
aproad with capital of 100000, 600.
lne forto Rican Tobacco company
win capital of $1,soo.oO and the
corporation OF United Cigar stores.
with capital Of 100000
uhder this arrangement eoch of the
inherent kinds Of business will be dis
tributed between two or more conpa-
MES with division Of tho rrominent