Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1911-12-08
|1KES Up TRUST PROBLEM
onIy Matter Touched On In Presidents
Message to Congress
Additional Legislation to Strengthen Present
Statutes Is Recommended Defends Stand
ard Oil and Tobacco Decisions

..:,,ton President Taft's annual
""s"' S,.Efch was read in both houses
Fee t,o,,ess Tuesday, deals exclusively
Of CO"9' antitrust statute. The message
!" narr is as follows:
ID p@ .so Senate and House of Represent
t ~ This message is the first OF sew
il ,,- 7 shall send to congress during
eIa' , %.,, between the opening OF its
us ia. eassion and it's adjournment for
ls7-l c',-istn,as holidays The amount Of
u, o+fon to be communicated as to
l l' ararations CT the government, the
u. - or inportant subjects calling Tor
a,ort nv the executive, and the trans
."t,n to congress Of exhaustive re-
-, cnecfaI commissions, make 1t I'M
i,Is IN include in one message or
E.s-o,oh1e length a discussion OF the top
=. ,bat oaght to be brought to the at
....,n If the national legislature at Its
inst regular session.
~. Antitrust Law-The Supreme
Court Decisions.
y May last the Supreme court handed
,..ro decisions in the suits in equity
t.,rgbt bv the United States to en5oln
~. further maintenance of the Standard
M tr1st and of the American Tobacco
tr'et and TO secure their dissolution. The
DECISIONS are epoch making and serve to
s5rsa the business world authoritatively
NJ the scope and operation or the anti
trst law of 1890. The decisions do not
donar, in any substantial way from the
nrayfous decisions Of the court in constru-
ing and applying this important statute,
hint they clarity those important decisions
bg further defining the already admitted
5eyrep;ions TO the literal construction or
he act. By the DEGREES, they furnish a
qsefrI precedent as to the proper method
Of dealing with the capital and property
nj Illegal trusts These decisions Sug-
gpst the need and wisdom of additional
or supplemental legislation to make 1t
easier for the entire business community
10 square with the rule of action and
agality thus finally established and to
preserve the benefit. freedom and spur
oi reasonable competition without loss OF
peal efficiency or progress.
No Chance in the Rule of Decision
Merely in Form of Expression.
The statute IN its first section declares
"a he Illegal every contract, combination
h tie form of trust or otherwise, or con-
s.racy. in restraint of trade or COM
mere among the several states or with
foreign nations" and in the second, de-
fI8ros guilty of a misdemeanor every per-
bon who shall monopoliZe or attempt to
hMopoize or combine or conspire with
aly other person TO mOnopolize any part
0t tie trade or commerce of the several
s2t2S or with foreign nations"
In two early cases. where the statute
pas invoked to enjoin a transportation
agreement between interstate railroad
companies it was held that it was no de-
tanse to show that the agreement as to
f3,ps complained Of was reasOnal at COM
non law. because it was said that the
Statute was directed against all con-
acts and combinations in restraint Of
trade whether re&sOnal at common law
p not 1t was plain from the record,
0Teyer that the contracts complained
tn those cases would not have been
F5ened reasonable at common law.
It has been said that the court, by in
reducing into the construction of the
2tle common law distinctions, has
mS'ulated It. This is obviously untrue.
It's Judgment every contract and COM
nation in restraint of interstate trade
Daae with the purpose. or necessary eff
eel u controlling prices by sitting COM
FAHon or Of establishing in whole or in
dT' a monopoly of such trade, is con-
Hned by the statute. The most ex-
FGe critics cannot instance a case that
.sAt TO be condemned under the statute
~el IS not brought within It's terms, as
Gus construed.
Ae SUGGESTION is also made that the Su-
F"t court by its decisions in the last
cases has committed to the court the
l1sHHed and unlimited discretion to de-
"4ae whether case of restraint of
e within the terms of the statute.
S wholly untrue. A reasonable re-
usLN OF trade at common law is well
Il ..sIs!ood and is clearly defined 1t does
'fSS IN the discretion OF the court 1t
S ,e united to accomplish the purpose
awful main contract to which, in
ual It shall be enforceable at all,
guS' De Incidental If it exceeds the
'eS OF that contract 1t is void.
nc Kennedy in Equity by Dissolution.
NE Standard Oil case the Supreme
g'SIt courts found the combination
monopoly of the interstate bust
49,. y. Fehmng, transporting, and mar
S5Eo'eum and Its products, effect
- maintained through thirty-seven
n, . ,.,. corporations, the stock Of which
lea by New Jersey company. It
i, '''.e' commanded the dissolution of
continuation. directed the transfer
s.o-'ata distribution by the New Jer-
HHpany Of the stock held by it in
'tiIy-seNen corporations to and
b., ~ stockholders, ar1 the corpora
H.. ~. =. individual defendants were en-
So. nom conspiring or combining to
ks,., S1eh monopoly; and all agree
s,3,. 's."en tie subsidiary corporations
e'ss1.Y produce or bring about further
'"s OF the act were enjoined.
"a, ~ iooaCco case. the court found
% 3, "iuiFjdual defendants, twenty
= |.ccssS+. lumber, had been engaged In
ia;n, ~ sIoFt to acquire complete do
s,,rn,.:'e ' the manufacture. sale, and
sa abraO any,. OF tobacco in this country
e,,Ss0u' and that this had been done
b $50 ~,.'",ions made with a purpose
a,as W. 10 Stiiie competition. control
biz IN .E establish a monopoly. not
ia ~ ., e manufacture Of tobacco, but
Egagss,.t.iI -IoI and licorice. used in it's
(1r. rr.Ie ana of its products OF CT
Ri rras1,Ves and snuffs. The tobacco
b 5ifsgGtend far more complicated
b, ~ o1'S case than the Standard Oil
Min =. Ueoree which would efrectuate
a n - ~ me court and end the viola
ese b.,s. statute. There was here no
tie Sung company as in the case
say ~ 'Eafd Oil trust. The main COM
by Ue American Tobacco COM
vor,na1,Il." lacturing, selling and hold
'ay the my, The plan adopted to de-
la invo JIUtlo'nation and restore compe-
aud nIan..u the redivision or the capt.
q Of ~, VI the whole trust between
81 and companies constituting the
purno..e" companies organized for
5 10 + OF the decree and made par
S1sen. N'u numbering. new and old.
b 6ssa original suit there were twenty
u, ~ 'eHoants who uara ch,r,rad ,,,;tb