New-York tribune., 1911-11-09
"Confiscation," Says Court.

"Confiscaton,' Says Court.
The objection made from many quar-
ters against a continued stock owner
ship by the defendants could not have
been considered, Judge Lacombe said,
! because the Supreme Court in the
| Northern Securities case and in the
STANDARD Oil case had found no reason
to disapprove of a disintegration that
continued this condition of affairs. After
taking up one after another the sug
sestions made by Attorney General
Wickersham, Judge Lacombe, referring
to his demand concerning the stock Of
the United Cigar Stores Company held
by the defendants, said in part
We have no power to grant any such re-
quest. Tho antitrust act carefully emu
merates the penalties for q violation of
its proviSions-fines, imprisonment. injunC-
tion against continuing 10 transact inter-
state business, treble damages 10 all per.
sons injured by an unlawful combination,
seizure and forfeiture Of property in course
of inter state transportation. These are
certainly ample 20 enforce obedience.
Nowhere, however, is there any authority
for the proposition that this court may
seize the property Of private persons who
may have offended against that statute
and sell n under conditions which would
preclude the holder of the title or the
owner Of the equity from bidding at the
sale so as to compel the purchaser TO pay
a reasonable price for it, or from buying
II himself if no one else VIII pay fun value
for II. That Is Conflscation
In answer to Attorney General Wick
ersham's demand that the plan might he
brought back into court within five years
for revision Judge Lacombe said:
II is not apparent that this court has the
power so 70 do. Had II not been for the
mandate OF the Supreme Court il might be
questioned whether a Circuit Court OF the
United States Lao any jurisdiction 10
recreate a now group Of corporal tiOnS out
of the elements into which a pre-cXlStng
group Of corporations had been split or 10
formulate n plan or method according 10
| which individuals, natural or corporate
were to be invited to invest money ana
embark I'm business. All such questions are,
OF course resolved for us by the decision
of the court Of last resort.
But neither in It's mandate nor in It's opin-
ion is there any warrant fOi the conclusion
that this court IS to prescribe the tempo
rary terms OF a moduS Vivendi, with power
to reasSemble five years hence-ourselVos,
or our survivors and Successors-and mOdi-
fy those terms. while In the interim by
purchase or exchange OF these bonds up.
ward OF slO)0OO0oO worth Of property shall
have exchanged hands irrevocab!y.
Receiver Only as Last Resort.
Judge Coxe's opinion on the plan was
rather brief lie pointed out that tho
appointment Of a receiver for a corpora
ton solvent and prosperous was the
only alternative to the plan, and re-
marked that such calamity should be
avoided except as a last resort. He
said:
/ approve Of the proposed plan. not be-
cause ! think II perfect. hut because ii Is
the best plan attanable. Perfection Is
impossible. The condition existing before
the illegal combination was formed cannot
be restored; it has gone beyond the hope
Of recall. The plan which we have sane
toned eliminates the Objectionable features
prohibited by the antitrust act and per-
mits no unreasonable or unlawful re
straint Of trade. In short were the various
corporations which the plan authorizes or
ganized for the first time today, they
would not he within the letter or the mean
Ing Of the statute
Judge Noyes described tie difficulties
encountered in the preparation of the
plan. and said that it had to be handled
as practical matter in a practical way.
The plan as whole, he said. with the
injunctive measures proposed. met the
principal evils pointed out in the de.
cision OF the Supreme Court, and brought
about a condition fairly in harmony
with TIE law. Judge Noyes made the
following conclusion from the case:
The extent 10 which it has been necessary
TO tear apart this combination and force
81 into new forms. with the attendant bur
dens. ought TO demonstrate that the fed
eral antitrust statute is a drastic statute
which accOmplishes effective results;
which so long as IL stands on the statute
books. must be obeyed, and which cannot
be disobeycd without incurring far reach
ing penalties And on the other hand, the
successful reconstruction of this organiZs-
ton should teach that the effect OF en-
forcing this statute against Industrial COM
binati0ns is not TO DESTROY, but 10 recon
struct: not 10 demolish. hut 10 recreate in
accordance with the conditions which the
Congress has declared shah exist among
the people of the United States.
May Appeal to Supreme Court.
,r1o ynyerumput has thS right Of aD-