Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-05

we may have . combination OF two
corporations, which may run on for
years, and that subsequently the attor.
ney general may conclude that It was
. violation Of the statute. and that
which was supposed by the combinsrs
to be innocent then turns out to be a
combination In violation of the stat.
ute. The answer to this Hypothetical
case IL that when men attempt to
amass stupendous capital az will en-.
able them to suppress competition,
control prices and establish a monop-
oily they know the purpose of their
acts. Men do not do such q thing
without having it clearly in mind. II
what they do is merely for tho 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 be con
victed later. unless 1t happen that later
on they conclude to suppress competi
ton and take the usual methods for
doing so. and thus establish for them.
selves monopoly. They can, in such
case, hardly complain II the motive
which subsequently Is disclosed Is at
tributed 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
~ ~
chants and business men to follow It
may be that such plan will be
evolved. but I submit that the discus
sions which have been brought out in
recent days by the fear of the con-
tinued execution Of the antitrust law
have produced nothing but glittering
generalities and have offered no line
of distinction or rule OF action ss
definite and a. clear as that which the
Sur rene court itself lays down in en-
forcing the statute.
supplemental Legislation Needed-Not
Repeal or Amendment.
I see no objection-and indeed I can
see decided advantages-in the enact
ment Of law which shall describe and
denounce 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 a competitor by un.
derselling him at q price so unproht'
able as to drive him out Of business
or the making of exclusive contracts
with customers under which they are
required to give up association With
other manufacturers. and numerous
kindred methods for sitting competi
ton and effecting monopoly, should be
criminal statute on the one hand to
enable the government to shorten Its
task by prosecuting single misde-
meanors instead of an entire con.
spiracy. and, on the other hand. to
serve the purpose Of pointing out
more in detail to the business com.
munity what must be avoided.
Federal Incorporation Recommended.
In a special message to congress
on January Z, 1910. I ventured to
point out the disturbance to business
that would probably attend the disso-
luton of these offending trusts ]
said:
But such an investigation and pos
sible prosecution Of corporations
whose prosperity or destruction affects
the comfort not only Of stockholders
ployes, and associated tradesmen must
necessarily tend to disturb the con.
fdence Of the business community.
to dry up the now flowing sources OF
capital from its places Of boarding.
and produce halt in our present
prosperity that will cause suffering
and strained circumstances among
the innocence many for the faults of
the guilty few. The question which
wish in this message to bring clear.
ly to the consideration and discus
sion of congress is whether. In order
to avoid such a possible business
danger, something cannot be done by
which these business combinations
may be offered means, without great
financial disturbance, Of changing the
character. organization. and extent OF
their business into one within the
lines of the law under federal control
duO SupeEVISlOu, 1SCuIlu8 SoAApAAnnS9
with the antitrust statute.
Generally, in the industrial com.
binations called Trusts the prin-
cipal business is the sale Of goods in
many states and in foreign markets;
in other words, the interstate and for
eign business far exceeds the busi-
ness done in any one state. This
fact will Justify the federal govern
ment in granting federal charter
to such a combination to make and
sell in interstate and foreign COM
merce the products of useful manu-.
facture under such limitations as will
secure compliance with the anti
trust law. It is possible SO to frame
a statute that while 1t offers protec-
ton to a federal company against
harmful. vexatious, and unnecessary
invasion by the states. 1t shall sub
ject it to reasonable taxation and
control by the states with respect to
It's purely local business.
Corporations organized under this
act should be prohibited from &C.
quiring and holding stock In other
corporations Except for special rea-
sons, upon approval BY the proper
federal authority, thus avoiding the
creation under national auspices Of the
holding company with subordinate
corporations In different states, which
Co.