The Glenwood post., 1911-12-09
among the people of the United
common.stock Ownership.

Common.Stock Ownership.
1t has been assumed that the pres
ent pro-rata and common ownership
in all these companies by former
stockholders of the trust would insure
continuance Of the same old single
control of all the companies into
which the trust has by decree been
disintegrated This is erroneous and
is based upon the assumed inefhcacy
and innocuousness of judicial injunc,
tions. The companies are enjoined
from cooperation or combination;
they have different managers, difec-
tors, purchasing and sales agents. If
all or any of the numerous stockhold-
ers, reaching into the thousands. at
tempt to secure concerted action OF
the companies with view to the con-
troll Of the market, their number Is so
large that such an attempt could not
we'll be concealed and its prime NOV
ers and all its participants would be
ngs and Imprisonment Of summary
character. The immediate result OF
the present situation will necessarily
be activity by all the companies un-
der different managers, and then com
petition must follow, or there will
be activity by one company and stag
nation by another Only a short time
will inevitably lead to change in
ownership of the stock, as all oppor-
tunity for continued cooperation must
| disappear Those critics who speak
Of this disintegration in the trust as
mere change Of garments have not
given consideration to the inevitable
working of the decree and understand
little the personal danger OF attempt
ing to evade or set at naught the SOL
emn Injunction of a court whose OBJ
ject is made plain by the decree and
whose inhibitions are set forth with
detail and comprehensiveness unex-
ampled in the history of equity juris-
prudence
The effect of these two decisions has
led to DEGREES dissolving the combina-
ton of manufacturers of electric lamps,
southern wholesale grocers' associa-
ton. an interlocutory decree against
the powder trust with directions by
the circuit court compelling dissolu-
ton, and other combinations Of sim
liar history are now negotiating with
the department of Justice looking to a
disintegration by decree and reorgan-
ization in accordance with law. 1t
seems possible to bring about these re-
organizations without general business
disturbance.
Movement for Repeal Of tho Antitrust
Law.
But now that the antitrust act Is
seen to be effective for the accomplish
ment of the purpose Of its enactment.
we are met by cry from many differ
ent quarters for its repeal. 1t Is said
TO be obstructive of business progress
to be an attempt to restore old-fash
ioned methods of destructive competi-
ton between small units, and to make
impossible those useful combinations
of capital and the reduction of the cost
of production that are essential to con-
tinued prosperity and normal growth.
In the recent decisions the Supreme
court makes clear that there is moth
ing In the statute which condemns
combinations of capital or mere big
ness of plant organized to secure
economy III production and a reduc
tion of its cost. 1t is only when the
purpose or necessary effect of the or
ganization and maintenance of the
combination or the aggregation of i'm
mense size are the sitting of competi
ton. actual and potential, and the en-
bop inc pf opJ 70 oh
monopoly. that the statute is violated.
Mere size is no sin against the law
The merging of two or more business
plants necessarily eliminates competi-
tion between the units thus combined,
but this elimination is in contravention
of the statute only when the combina-
tion is made for purpose of ending this
particular competition in order to Sc
cure control of, and enhance. prices
and create a monopoly.
Lack of Definiteness in the Statute.
The complaint is made of the statute
its description of that which is forbid
den, to enable business men to avoid
its violation. The suggestion is, that
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 combiners
to be innocent then turns out to be a
combination in violation of the stat.
ute. The answer to this hypothetical
case is that when men attempt to
amass stupendous capital as 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 a thing
without having it clearly in mind II
what they do Is merely for the 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