The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1911-12-09


discretion Of the court. IL must be
limited 10 accomplish the purpose OF n
lawful main contract 10 which in order
that IL shall Ice enforceable az all IL
must be incidental II II exceed the
needs OF that contract IL il void
The test OF reasonableness was never
applied by the court at comman law
To contracts or combinations or con
splracies In restraint OF trade whose
purpose was or whose necessary effect
would be Ia stiae competition. 10 con
troll prices or establish monopolies
The courts never assumed power 10
say that such contracts or combina-
tions or conspiricies might be Lawful
II the parties 60 them were only mod
crate in the nSe OF the power thus Sc
cured ana did not exact from the pub
lie too great md eXorbltant prices. II
Is true that many theorists and others
engaged IN business violating the stat
ute have hoped TINT some such line
could be drawn by courts. but no court
OF authority has ever attempted II
Certainly there Is nothing in the deci,
sions or The latest two cases from
which such u dangerous theory ~ iu
dicia discretion IN enforcing this stat
ute can derive the slightest sanction
Force and Effectiveness Of Statute a
Matter OF Growth.
We have been tweuty-one years max.
ing this statute effective for the pur
poses for which IL was enacted. The
knight case was discouraging and
seemed TO remit 10 the states the whole
available power 10 attack and suppress
the evils OF the trusts Slowly. howev-
err. 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.
victng for Jail sentences and judges
have been most reluctant 10 impose
such sentences on men OF respectable
standing in society whose offense has
been regarded as merely statutory
Still. as the offense becomes better un.
derstood and the committing OF II par'
takes more OF studied and deliberate
defiance OF the law we can be conf
dent that juries will convict individu-
ais and thar Jail sentences will be i'm.
posed
The Remedy In Equity by Dissolution.
In the Standard oil ease the supreme
and circuit courts found the combina
ton TO be monopoly OF the interstate
business OF refining. transporting and
marketing petroleum and its products.
efie fed and maintained through thir
ty-seven different corporations. the
stock of which was held by New Jer.
sey company II In effect commanded
the dissolution OF this combination. di-
rected thu transfer and pro rata distri
button 10y the New Jersey company Of
the stock held by IL in the thirty
corporations 60 and among its stock
holders. and The corporations aud indi-
vidunl defendants were enjoined from
consplring or combining 70 restore
such monopoly and all agreements be
tween the subsidiary corporations tend
ing 10 produce ar bring about further
violations of the net were cnjoined.
In the tobacco case the court found
that the individual defendants. TWEEN.
ty-ninc in number bad been engaged
In a successful effort to acquire com
pletc dominion over the manufacture.
sale and distribution oi tobacco Id this
country uud abroad bnd That this bad
been done by combinations made with
purpose mud c9pi 90 stihe cpmpcl-
ton. contro. prices aud establish q
MONOPOLY Nor only n the manufacture
of tobacco. but alsn nt tim foil and lic-
orlse used iu Cos manufacture and of
It's products of riggr~. cigarettes and
snums The tobacco suit presented a
far more complicated and difficult ease
than the standard oil suit for decree
which would c1ectuate thc will Of the
court aud end the vinlntlon Of the stat
ute There was here M single hold
INK company, as in the case Of the
Standard Oil trust The main company
was the American Tobacco company
manufacturing. selling and holding
company The plan adopted 20 de-
stroy the combination and restore com.
petition Involved the redivis'ou Of the
capital and plants of the whole trust
between some Of the companies con
shutting tie trust and new companies
organized Tor the purposes Of the dc.
cree aud made parties 10 II and mum
bering. new and old. fourteen.
Situation After Resdiustment.
The American Tobacco company
toldi. readm~'cd capital 100000;
the Iiggeft 4 Meyers Tobacco company
newl capital S61O0O00O: the +. Loril.
lard company mcwl capital $1,000.
GOO. and tho r J Reynolds Tobacco
company tnldi. capital Sf.521.000, are
\ chiefly engaged IN the manufacture
and sale Of chewing and smoking 20
bacco and cigars The former one Tin
foil company Is divided into two. on,
OF $4,000 capital and the other OF
/ 100000 The Quo snuff company 4,
divided into three companies. one Will
n conltnI Of Sl5OcOWO. another with q