Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-07
Wickersham Praises Decisions
of Supreme Court.
ENDORSES RULE OF REASON
Attorney General. Addressing Mich.
igan Bar Association, Lauds
Antitrust Opinions.


torney General wickersham spoke before
the Michigan state Bar Association hero
yesterday and discussed the Supreme
Courts recent Interpretation OF the Sher-
man antitrust law in the Standard oil
and tobacco cases. He gave his un-
qualified Endorsement to the courts ap-
plication OF the so-called rule OF rea-
SON.
Those who have thoughtlessly yielded
to the superficial conclusion resulting
from the application by the Chief Justice
of the rule of reason TO the Interpretation
of the Sherman law he said. can find
but little to justify the idea that the
Sherman law has been made ineffective
by those two decisions. for precisely the
contrary is established by these two great
judgments.
The most cursory examination OF the
decree in the tobacco case--the most cas-
ual consideration OF the drastic and far
reaching remedy imposed-mases II per-
fectly apparent that the Sherman law,
perhaps for the first time, has been dem
| onstrated to he an actual effective weap-
| on TO the accomplishment OF the purpose
for which IL was primarily enacted.
| namely. the destruction Of the great COM
binations fam'i arly known as trusts
Rule of Reason Declared.
The Attorney General reviewed the
Standard Oil and tobacco cases at length,
and traced the history OF the Sherman
law from its enactment, citing the inn
portant cases in which It has been in
| voked.
THE area of uncertainty In the law has
| been greatly narrowed" he said. land
its scope and effect have been pretty
clearly defined.
THE school of literal Interpretation has
| been repudiated, and the application OF a
rule of reasonable construction declared.
There will always be field OF uncer-
tainty in SO far as an investigation or
| facts is required. particularly when in
tent becomes a necessary consideration:
but this surely may now be said to be be-
yond controversy.
That ordinary agreements OF purchase
and sale of partnership or of corporate
ton OF the Sherman act. even though in
cidentally and to a limited degree they
| may operate to restrain competition In In
terstate or foreign commerce BET ween the
parties to such agreements.
Where Violation Comes In.
But any contract. combination or associ-
alton the direct object and effect of which
| is to control prices restrict output. d.
vide territory, refrain from competition
| or exclude or prevent others from COM
| peting in any particular field Of enter
prise imposes an undue restraint upon
| trade and commerce. and is in violation
| OF the first section OF the act
This principle applies TO all associa-
| tions OF competitors OF the character usu-
| ally known as pools: TO agreements with
so-called wholesale or retail agents where
| by the manufacturer or an article, even
though made according to some secret
process or formula seeks to control the
price at which 1T may be sold by pur.
| chasers directly or indirectly from tho
manufacturer. 1t applies also to attempts
| to control competition between inde-
pendent concerns by means OF a common
| stock holding trust. whether individual or
| corporation holder.
"6ize alone does not constitute monop-
oily But unfair methods of trade. by de-
| stroying and excluding competitors by
| means OF fntercorporate stockholdings. or
by means of agreements between actual
or potential competitors, whereby the
control of commerce among the states
or with foreign countries in any partic-
ular line OF industry is secured or threat
ened, expose those who are concerned In
such efforts to the penalties prescribed
they are engaged in monopolizing or at
| tempting to monopolize such commerce.
Can Terminate Unlawful Restraint.
'Tt is also now settled that no form OF
corporate organization, merger or con-
solidation; no species OF transfer of title,
whether by sale. conveyance or mort
gage. and no lapse of time from the date
Of the original contract. conspiracy or
combination can bar a federal court Of
equity from terminating an unlawful re-
straint. compelling the disintegration
of a monopolistic combination"
Mr. Wickersham quoted from Gov.
Woodrow Wilson's work The State the
following:
"It is one of the distinguishing char
acteristics of the English race, whose po-
litical habit has been transmitted to US
| through the sagacious generation by
whom this government was erected. that
they have never felt themselves bound by
the logic of laws, but only by a practical
understanding OF them based upon slow
precedent"
/ eff this law" declared the Attorney
General in conclusion DESIGNED to pro-
tect the people of this country from the
| evils Of monopoly and to preserve the
liberty Of the individual TO trade freely
shall now be clearly understood; If its
true purpose shall be recognized and its
| beneficent consequences realized. the
| twenty years of slowly developed inter
probation and widening precedent will not
have been without great value. For tho
| law henceforth will be used a part OF
| the running machinery OF our political
system. adapted to the needs OF our So
cial condition.