davidaulloa/AmericanStories huggingface dataset:
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Confiscation Not the
Purpose of the Statute.

II is not the purpose OF the stature
To confiscate the property and Capl
ia of the offending trusts. Methods
Of punishment by nne or imprlson-
ment Of the individual Offenders: by
fine OF the corporation or by forfeit
ure of It's goods In transportation.
are provided but the proceeding In
equity is q specific remedy 10 ston
the operation of the trust by m
junction 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 IA decree
moro effective for such a purpose
been entered by court than that
against the Tobacco trust. AS Circuit
Judge Moves said in his Judgment
approving the decree.
The extent to which II has been
necessary To tear apart this comhi-
nation and force 1t into new forms
with the attendant burdens ought 10
demonstrate tho federal antitrust
statute is a drastic statute which ac-
compllshes effective results; which so
long as il stands on the statute books
must be obeyed. and which cannot be
disobeyed without incurrIng far
reaching penalties. And. on the other
hand. the successful reconstruction
OF this organization should teach that
the effect OF enforcing this statute
Is not To destroy, but TO reconstruct.
not 10 demolish. but to recreate In
accordance with the conditions which
the congress has declared shall ex-
list among the people OF the United
States"
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Federal Incorporation
Recommended by President.

In a special message 20 congress
on January I, 1910, l Yentured To
point out the disturbance TO business
that would probably attend the dis
solution OF these offending trusts. l
said:
But such an investigation and pos
sIblc prosecution OF corporations
whose prosperity or destruction af-
fects the comfort not only OF stock
holders but Of millions OF wage earn
crs. employees. and associated
tradcSinen must necessarily tend To
disturb tho confidence OF the bDsi-
ness community, TO dTC up the now
flowing sources OF capital from It's
places of boarding. and produce
halt in our present prosperity tha,
will cause suffering and strained
circumstances among the innocent
many for the faults OF TIC guilty few
The question which ] wish in this
message 60 bring clearly To the con-
sIderatlon and discussion Of con-
grcss Is whether. In order TO avoid
such possible business danger:
something can not bc done by which
these business combinations may be
offered means. without great iinan-
cial disturbance. OF changing the
character. organization. and extent
OF their business Into ono within the
lines Of the law under federal con-
troll and supervision securing COM
plia nee with the antitrust statute.
"Cicncrally. t.; .-Gnsirisl combina
lions called trusts tho principal
business is the sale OF goods in many
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
SPECIFY THE UNF AIR
METHODS, He URGES
Wants Congress TO Make
Clearer What Kinds of Com
petition Are Objected TO.

states and In foreign markets; In
otnor words. the interstate and for
cign business far exceeds the business
done In any one state. This faol WIZ
justify the federal government in
granting q federal charter 10 such
combination 30 make and sell In IN
tcrstatr and foreign commerce the
products OF useful manufacture un-
der such limitations az Will secure
compliance with the antitrust law
IT Is possible TO SO frame statut"
that while II offers protection 10
federal company against harmful,
veyatious, and unncce ssarv invasion
by the states. Il shall subject " to
reasonable taxation and control hy the
states with respect TO Its purely loca'
business
"Corporations organized under this
nuirine and holding stock In other
corporations except for special rea-
sons, upon approval ny the proper
federal authority. thus avoiding the
creation under national auspices ~
The holding company with subordl-
nate corporations In different states.
which has been such an effective
agency in the creation OF the great
trusts and monopolles.
III the prohibition of tho anti
trust act against combinations IN re
straInt OF trade is TO be effectively
enforced. 1t is essential that tho ma
iional government shall provide for
the creation OF national corporations
TO carry on a Legitimate business
throughout the United States. The
conflicting laws of the different
states OF the Union with respect 70
foreign corporations make It diff
cult, If not impossible. for one cor
pora,ion to comply With their re-
auire ments so as 10 carry on busl.
ness in a number OF different states
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Supplemental Legislation
Not Repeal or Amendment.

see no obiection-and indeed |
can see decided sdvaptages-in the
enactment Of a law which shall de-
scribe and dcnouncc methods ot
competition which arc unfair and arc
badges OF the unlawful purpose de-
nounced In the antitrust law The
attempt and purpose 10 suppress
competitor by underselllng him at
a price so Improbable as 10 drive
him out OF business, or the making
of exclusive contracts with custom
ers under which they are required
10 give UP association with other
manufa cturers and numerous Kin
dred methods for stlnlng competition
and effectinC monopoly. should be de
scribed with sufficient accuracy in
criminal statute on the one hand 10
enable the government To shorten It's
task by prosecuting single misdc-
meanors instead Of an entire con-
splracy. and. on the other hand. To
serve the purpose OF pointing out
more in detail TO tho business COM
munity what must be avoided.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Federal Corporation
Commission Is Proposed.

do not set forth In detail the
terms and sections of statute
which might supply the constructive
legislation permitting and aiding ~
formation Of combinations of capital
Into federal corporations, They
should be subject 10 rigid rules as 10
their organization and procedure. In
Guiding effective publicity, and TO the
OF stock and bonds by an executive
bureau or commission In tho depart
ment Of commerce and labor. 30
which in times Of doubt they might
well submit their proposed plans for
future business. II must he distinct
~ understood that incorporate an
der a federal law could not exempt
the company thus formed and IFS In
corpoIatorS and managers from pros
ccution under the antitrust law for
subsequent illegal conduct, but the
publicity OF Its procedure and the
opportunity for frequent consultation
with the bureau or commission In
charge of the Incorporation as 10 the
lions would offer IL as great security
against successful prosecutions for
violations Of the law as would be
practical or wise.
Such a bureau or commission might
we'll be invested also with The duty
already referred To. OF aiding courts
in the dissolution and recreation. of
trusts within tho law. IL should be
an executive tribunal Of the dignity
and power of tho comptroller Of the
currency or tho interstate commerce.
commission. which now exercise Su-
porVisory power over important
classes OF corporations under federal
regulation.
The drafting OF such federal in
corporation law would offer ample
opportunity 10 prevent many mani
fest evils In corporate management
today. including irrcsponsihil!,y OF
control III the hands OF the few who
are not the real owners.
recommend that the fcdcral
charters thus la be granted shall he
voluntary, at least until experience
iustiies mandatory provisions The
benefit Ia he derived from tho opera
lion OF great businesses under the
protection Of such a charter would
attract all who arc anxious 10 keep
within the lines OF the law, Other
lavge combina tions that fall To take
advantage OF the fnJersl ncorpors-
tion will not have right 10 COM
plain If their failure is ascrIbed 10
unwillingness 10 submit their trans
actions 10 the careful official scrutiny.
competent supervision and publicity
attendant upon the enjoyment OF
such II charter.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
The Remedy in Equity
by Dissolution of Trusts.

In the Standard OH case the su-
rrcnre and circuit courts found the
combination TO he monopoly OF tire
interstate business Of refining. trans
porting and marketing petroleum. and
its products, effected and maintained
through thirty-seven different cor
porations, the stock OF which was
held hy a New Jersey company. III
in effect commanded the dissolution
Of this combination. directed the
transfer and pro rata distribution by
the New Jersey company OF the stock
held by II In the -thirtS-s"yen cor
poratIons 10 and Among It's stock
holdcrs, and the corporations and in
divl6usl defendants were epJo!ned
from conspiring or combining TO re-
store such monopoly; aud all agree
ments between the subsidiary cor
porations tending To produce or bring
about further violations of the act
were en1olned.
found that the individual defendants,
twenty nine IN number, had been en-
gaged I'm successful effort 10 nc
quire complete domination over the
manufacture. sale and distribution
Of tobacco In this country and abroad.
and that this haa been done by com
blnations made with purpose and
effect 10 stifle competition, control
prices and establish monopoly, not
only In the manufacture OF tobacco,
nut also OF tin-foll ana ncorlce used
in It's manufacture and OF Its prod
ucts or cigars. cigarettes and snuffs,
The tobacco suit presented a far
more complicated and difficult case
than the Standard Oil suit for a de-
cree which would effectuate the Will
OF the court and end the violation of
tho statute. There was hers no sim
gle holding company as in tho case
OF the Standard Oil trust. The main
company was the American Tobac-
co company, a manufa curing. SELL
ing and holding company. The plan
adopted 10 destroy the combination
and restore competition involved the
redivision OF the capital and plants
of the whole trust between some OF
the companies constituting the trust
and new companies organized for the
purposes OF the decree and made
parties TO IT, and numbering new and
old fourteen
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
What Situation Is
After the Readjustment.

roId5, readjusted capital. so2, 900. 900;
the Ligsctt & Meyers Tobacco COM
pany new. capital, ss7.0oo.ooo; the
s47.0oO.000 and the r 7. Reynolds
s7.525. 900. are chiefly Engaged in the
manufacture and sale of chewing and
smoking tobacco and cigars, The
former. one tIn-foil company Is d.
tai and the other Of 100000. The
one snuff company Is divided into
three companies, one with capital
Of si6 6.06o.0o0. another with CAPT
tai OF .sS.o0o,0oO. and a third with
capital Of ss,ooo.ooo The lcorice
ital OF S6. .75s.300 and another with a
capital OF s2,000,O00. There Is. also.
the British-American Tobacco COM
pany. q British corporation. doing
s2s.O0o.oe0. the Porto Rican. Tobacco
company, with capital of $500. 600.
and the corporation OF United Cigar
stores. with capital of s9,o0o,ooo.
Under this arrangement. each OF
the different kinds Of business Will
companies with division OF the
prominent brands In the same to-
bacco products, so AS To make COM
petition not only possible but neces-
sary. Thus the smoking tobacco
business of the country is divided
so that the present independent COM
panies have 2I.S9 per cent, while tho
American Tobacco company will have
330S per cent. the TAggett e. Mey-
ers 2O06 Der cent. the Lorillard com
panv 22.s2 per cent, and the Fey
nolds company ?.e6 PEI, cent. The
panies. both preferred and common.
has been taken from the defendant
American Tobacco company and has
been distributed among Its stock
competition have been declared null
and further performance OF them has
been enioinod. The preferred stock
or the different companies has now
been given voting power which was
denied {, under the old organization.
The ratio OF The preferred stock TO
the common was as IS TO 80. TINS
constitutes A very decided change in
the character nf the ownership and
control Of each company.
In the original suit there we're
twenty-nine defendants who were
charged with being. the, conspirat tors
through whom The illegal combination
acquired and exercised it's nniawful
dominion. Under the decree these
defendants Will hold amounts OF stock
in the various dIstributee companies
ranging from Al per cent as a maxi
mum TO 2s1 per cent as a minimum.
except in the case Of ono small COM
pany. tho Porto Nican Tobacco COM
pany. in which They Will hold IS per
cent, The tweutN-nino individual
defendants are enjoned for three
years from buying any stock except
from each other. and the group IL
thus prevented from extending its
control during that period All parties
10 the suit. and the new companies 3
who arc made parties. are erjoincj
nerpctually fron, In any way effect.
the companies in violation of The
statute by way ~ resumption OF the
old trust Each or the fourteen COM
panies IS enioined from acquiring
stock in any of the others. All these
companies are enioined from nav
ing any common directors or officers.
or common buvinG nr selling agents.
or common offices. or lending money
10 each Otllc-.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Size Of New Companies
and Purpose of the Law.

Objection Was made by cartaiu In
dependent fo,aCco companies thai
This settlement was unjust because
il left companies with Very large
capital in active business, and that
the settlement that would be rffer-
tive 10 put all ON AN equality would
he division OF the capital and plant
or the trust Into small fractions in
amount more nearly cqualrto that OF
each OF the. independent companies.
This. contcpticn results frpm a mis-
understanding OF tho ANTITRUST law
and Jts purpose. II Is not Intended
thereby 10 prevent the accumulation
Of large capital In business enter-
prlses in which such a. combination
can. secure reduced cost of produc-
tioq. sale and distribution. II is di-
rectcd against such an aggregation
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Predicts a Wide
Change of Ownership.

1t has been assumed that the pres
eDt pro rata and common owner
ship In all these companies by for
mer 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 disintegra,ed. This is errone-
CHS and is based upon the assumed
inef;icacy and innocuousness OF 1u-
diclal lniunctions,
The companies arc cnioiped from
cooperation or combination, they
have different managers, directors,
purchasing and sales agents. II all
or many OF the numerous stock
holders. reaching Into The thousands.
attempt To secure concerted action OF
the companies with view TO The
control of the market. their number
Is so large that such an attempt
could not we'll be concealed. and It's
prime movers and all its participants
tempt proceedings and imprison-
mcnt Of summary character.
The immediate result of the pres
cnt situation Will necessarily be &C
tiyity by all the companies under
different managers. and then COM
petition must follow. or there will
he activity by one company and
stagnation by another. Only a short
time Will inevitably lead 10 a change
in ownership of the stock, as all op-
poriunlty for continued cooperation
musI disappear. Those critics who
speak OF this disintcgration I'm the
trust as a mere change Of garments
have not given consideration Go the
inevitable working ~ the dec"es and
understand little the personal danger
OF attempting to evade or set at
nausht the solemn injunction Of a
court whose object is made plain 10y
the decree and whose inhibllionS arc
set forth With a detail and Comprc
hensivencss unexamplad in the his
tory of equity Jurisprudence.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Movement for Repeal
of the Anti Trust Law,

But now that the antitrust act is
seen 10 be effective for tho accom-
plishment of the purpose OF Its en-
actment. we are met by a cry from
many different quarters for Its re
peal. II is said To be obstructive Of
business progress. 10 be an attempt
to restore old fashioned methods Of
destructive competition between
small units. and To make Impossible
those useful combinations of capita
and the reduction uf the cost Of pro-
d,Iction that arc nssCniial 10 con
tinued prosperity and normal growth
In tic recent decisions the su-
prcInc court makes clear that there
Is nothing i'm tine statute which con-
dpmns combinations Of capital or
mere biguess Of plant organized TO
secure economy In production and a
reduction of its cost. II Is only when
the purpose or necessary effect of
.he organization and maintenance OF
the combination or the aggregation
OF immense size are the stirling of
competition, actual and potential.
aud tho enhancing of prices and
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Lack Of Definiteness
in the Statute Discussed

The complaint is made "t The stat
ute that il is not sufficiently definite
In its description Of that which is
forbidden. TO enable business men 10
avoid its violation. Tho SDgg'stlon
is. that We may have combination
ofS two corporations. which may run
on for years. and that subsequently
tho attorney general may cnn'lnne
that II Was n viola ton nj The statue
and that which was supposed hN th"
ccmhners To be innocent Then turns
out To he a combination in violation
of the statute. The answer 10 inns
hypothetical casn is that when ,ncn
attempt Ia amaSs such stnpehooI'
capital as will enable them TO sup,
press competition. control prices ana
establish monopoly. they know inc
purpose OF their acts. Men 90 no.
do such n thing without having "
clearly In mind. lf what they 90 ~
merely for the purpose Of reducing
tho cost OF production. without INC
thought az suppressipG competition
by use OF tho biGDess OF the plant
they are creating, then they cann2t
he convicted At the time the union rs
made nor can they n" conNlcteo
later. unless IL happen that later on
they conclude To suppress coinp"n-
tion and take tho usual melhods lor
doing so. and thus establish Tor
themselves monoPoiE. LheS c"u w.
In such a case, hardly complain II ths
motive which subsequently is ois
closed is attributed by the court 10
the original combination.
Much Is said Of the repeal OF TINS
statute and OF constructive Iegisla-
tion intended 10 accomplish the pur-
pose and blaze a clear path Tor non
est merchants and business men 10
follow, II may be that such n plan
will be evolved, but | submit that
the discussions which have been
brought ont in recent days BY ths
fear of tbe continued execution or
the antitrust law have produced
nothing but glittering eemeralities and
have offered no line of distinction or
rule Of action as definite and as clear
as that which the supreme court ~
self laws down in enforcing the stat
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
THINKS COURTS
ARE D|SSOLv|NC
TRUSTS RIGHTLY
Argues That Separate Colnpa-
nies Cannot Readily COM
bine to Restrain
Trade.
Continued from Page one.)

ions do not depart IN any substantial
way from the previous decisions or
the court in constituting and applying
this Important statute. but they
clarity those decisions by further de-
fining the already admitted eAcep.
tionS 10 The literal CONSTRUCTION OF
the act. BY the DEGREES, they inr-
nish A useful precedent as to the
proper method OF dealing with the
capital and property Of illegal trusts;
These decisions suggest the need ana
wisdom of additional or supplemental
legislation to make IL easier FOR the
entire business community to square
with the rule OF action and Legality
thus finally established and 10 pre-
serve the benefit. freedom. anu spur
Of reasona BILE competition without
loss OF real efficiency OF progress,
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Positive Prohibitions
Are Needed, He Declares.

I renew the recomme ndatlon of the
enactment Of general law provid-
ing for the voluntary formation OF
corporations TO engage IN trade and
commerce among the states and with
foreign nations. Every argument
which was then advanced for such
law. and every explanation which was
at that time offered to possible OBJ
jections have been conhrmed by our
experience since the enforcement OF
the antitrust statute has resulted In
the actual dissolution Of active COM
mercial organizations.
II is even moro manifest now than
il was then that the denunciation OF
consplracles In restraint OF trade
should not and does not mean the
denial OF organizations large enough
TO be intrusted with our interstate
and foreign trade. 1t has been made
more clear now than 1t was then that
a purely negative statute like the
antitrust law may well be supple
mented by specific provisions for the
building up and regulation Of legiti-
mate national and foreign commerce.
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
LAWS ARE CURB|N8
TRUSTS, He DECLAR|
Sees Problem Slowly but sut
Iy Being Solved in FavoI
of The People. :

tail as either the STANDARD OH Il.
or The Tobacco deCreR: bI, aid I,
stop for all time the then po,'.
movement toward the control osn
The railroads of the country h
single handc such n Gns-nan Nv.
could not have boeu heaIfbfu,
iIgcucc In th" republic. eyon ,bo..
exercised under the general ~
vision of an interstate comrnissjol7 7
DO We desir" 10 make such rn,st.
combinations and monopollos Iav,.
When all energies are directed !
toward fhe reduction of the cos,
production for the public bo,cfI,
n healthful competition. but tnvs
new WAYS and means for making -
n1uent in few hands the sbsoIs
control of the conditions and mr.
prevailing in the whole field NJ
dustry. then individual en'nrpriss !
effort VIII be Dlralyzed and rha srt
of commercial freedom WIN be ~,
WIN. n. T4R
The White House, Dec. 5. b
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06

suppress the evils of thc trusts, Slow
ly. however. the error OF that iudE-
ment Was corrected, and only in the
last three or four years has the heavy
hand OF the law been loiJ upon the
great illegal combinations that have
cNercised such an absolute dominion
over many OF our industries. Grim
inal prose cul ions have been brought
and n number are pending, but jurics
have felt averse TO conNicting Tor
jail sentences. aud judges have been
most reluctant 10 impose such sen
toncos on uen-nf respectable stand
ing I'm society whose offense has been
regarded RS merely statutory Still
as the offense becomes better m
derstood and the committing OF IL
partakes more OF studied and d@lib-
crate defiance Of the Jaw, Ve can b"
confident that luries Will convict In
dIviduals and that Jail sentences VIII
hr iupogpu
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
TAFT DEFENDS THE ANTITRUST LAW


construed by ihe supreme. court mnsl
continue to be the line Of diStipctiv'l
for legitimate business. IT must DC
enforced unless We are 10 han,sn III
d,cc g. fn one COMMON system OF
rccuIatiou or control Of prices Hike
thai which now prevails with re-
.nec, 10 pubilc utilities. and which;
when applied 10 all business would
be . Icing step toward state SO
The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-06
Voluntary Reorganizatlons
of Other Trusts at Hand,

The effect Of these two decisions
has led to DEGREES dissolving the
combina ton OF manufacturers OF
electric lamps, a southern wholesale
grocers' association. an lnterlocU
tory decree against the Powder trus,
with directions by the circuit court
compelling dissolution. and other
cnmbinat tions Of similar history are
now negotiating with the department
OF Justice looking 10 n disintegration
hy decree and reorganization in ac-
cordsnce with law. II seems pos
sibIe TO bring about these reorganiza
tions witllou, general business dis