Belding banner. (Belding, Mich.) 1889-1918, 1911-12-07
Decisions Of Supreme Court.

In May last the Supreme court handed
down decisions in the suits In equity
brought by the United States 10 enjoin
the further maintenance of the Standard
OIL trust and OF the American Tobacco
trust. and To secure their dissolution. The
decisions are epoch making and serve o
advise the business world authoritatively
OF the scope and operation OF the anti
trust law OF 1890 The decisions do not
depart I'm any substantial way from the
previous decisions Of the court in constru-
Ing and applying this important statute
but they clarity those important decisions
by further defining the already admitted
exceptions TO the literal construction OF
the act. BY the DEGREES they furnish a
useful precedent as to the proper method
OF dealing with the capital and property
OF Illegal trusts. These decisions sug-
gest the need and wisdom of additional
or supplemental legislation to make II
easier for the entire business community
10 square with the rule Of action and
preserve the benefit, freedom and spur
OF reasonable competition without loss OF
real efficiency or progress.
II has been said that the court. by In
Producing into the construction of the
statute common law distinctions, has
emasculated II. This Is obviously untrue.
BY its judgment every contract and com
bnation I'm restraint of interstate trade
made with the purpose. or necessary eff
feet OF controlling prices by sitting com
petition, or of establishing In whole or in
part a monopoly OF such trade is con-
demned by the statute. The most ey-
treme critics cannot instance case that
ought To be condemned under the statute
which is not brought within its terms as
thus construed.
The suggestion is also made that the Su-
preme court by It's decisions In the last
two cases has committed TO the court the
underlined and unlimited discretion TO de-
termine whether case OF restraint OF
trade is within the terms OF the statute.
This IS wholly untrue A reasonable re
straint OF trade az common law Is well
understood and is clearly defined. II does
not rest in the discretion OF the court Ii
must he limited 10 accomplish the purpose
OF a lawful main contract 10 which. IN
order that 1t shall be enforceable AT all
Il rust he incidental II ii exceeds the
needs Of that contract 80 is void.
Methc6s Of Dissolution.
In the Standard OH case the Supreme
and circuit courts found the combination
10 be a monopoly Of the interstate busi-
ness OF refining, transporting, and mar
keting petroleum and it's products effect
ed and maintained through thirty-seven
different corporations. the stock OF which
was held by a New Jersey company IL
this combination directed the transfer
and pro-rata distribution by the New Jer-
sey company OF the stock held by IL In
the thirty-seven corporations to and
among its stockholders, and the corpora
lions and individual defendants were en-
Joined from conspiring or combining 10
restore such monopoly; and all agree
ments between the subsidiary corporations
tending 20 produce or bring about further
OF the act were enjoined.
In the Tobacco case the court found
that the Individual defendants. twenty
nine in number. had been engaged in a
successful effort to acquire complete do
minion over the manufacture. sale. and
OF tobacco in this country
and abroad, and that this had been done
by combinations made with a purpose
and effect 10 stifle competition, control
prices, and establish monopoly. not
only i'm the manufacture OF tobacco. hut
also OF tin-foil and lcofce. used in IT'S
and OF its products of CT
gars. cigarettes and snuffs The tobacco
suit presentend a far more complicated
and difficult case than the Standard oil
suit for "A decree which would efectuate
the Will Of the court and end the viola
ton Of the statute. There was here no
single holding company as in the case
OF the Standard oil trust. The main com
pany was the American Tobacco COM
pany, manufacturing, selling and hold
Ing company The plan adopted TO de-
stroy the combination and restore compe-
tition involved the redivsion OF the capt.
tai 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 par
ties TO IL. and numbering. new and old,
fourteen.
Purpose Not Confiscaton.
IL IL not the purpose OF the statute TO
confiscate the property and capital of the
trusts. Methods of punishment
bv fine or imprisonment of the individual
offenders. by fine OF the corporation. or
by forfeiture of it's goods In transporta-
ton. are provided. but the proceeding in
equity is a specific remedy to stop the
operation OF the trust by injunction and
prevent the future use OF the plant and
capital In violation OF the statute.
] venture TO say that not In the history
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