The daily sentinel., 1911-12-05
TAFT URGES FEDERAL
TRUST CONTROL

the court tue underlined and unlimited
discretion to determine whether a
case OF restraint Of trade is within
the terms of the statute. This is
wholly untrue. \ reasonable re-
straint of trade at common law is
well understood and is clearly de-
fined. Ii does not rest in the dis
erection Of the court II must be
limited 10 accomplish the purpose
of lawful main contract to which.
in order that it shall be enforceable
at ali, il must be incidental. Ii IL
exceeds the needs OF that contract.
it IL voIu.
Force ard Effectiveness OF Statute a
Matter of Growth.
We have been p years making
this statute effective for the purpo-
ses for which ii was enacted The
knight case was discouraging and
seemed to remit to the states, the
whole available power to attack and
suppress the evils of the trusts.
Slowly, however. the error of that
Judgment was corrected, and only in
! the last three or four years has the
heavy hand of the law been laid up
on the great illegal combinations that
have exercised such an absolute do
minion over many of our industries.
Size of New Companies.
Objection was made by certain
independent tobacco companies that
I this settlement was unjust because
it left companies with very large
capital in active business. and that
/ the settlement tina would be effective
4 to put all on an equality would be
} division of the capital and plant
of the trust into small fractions in
amount more nearly equal to that of
each OF the independent companies.
i This contention results from a mis-
I understanding of the antitrust law
aud its purpose. II is not intended
/ thereby to prevent the accumulation
! of large capital in business enter
| prises in which such a combination
can secure reduced cost of produc-
! ton, sale and distribution.
I Confiscation Not the Purpose of the
Statute.
/ 1t Is not the purpose of the stat
ute to confiscate the property and
capital of the offending trusts. Meth
DDS of punishment by fine or imprs-
( onment of the individual offenders,
| by fine of the corporation or by for
/ feiture of its goods in transportation,
{ are provided. but the proceeding in
/ equity is a specific remedy to stop
.
| ton and to prevent the future use of
/ the plant and capital in violation of
! the statute.
Effectiveness of Decree
venture to say that not in the
history of American law has a de-
cree more effective for such a pur-
pose been entered by n court than
that against the Tobacco trust As
Circuit Judge Noyes said in his
judgment approving the decree:
The extent to which il mas been
necessary to tear apart this combl-
nation and force II into new forms
with the attendant burdens ought to
demonstrate that the federal anti
trust statute is drastic statutewhich
accomplishes effective results: which
so long as 1t stands on the statute
books must be obeyed. and which can
not be disobeyed without mourning
far-reaching penalties.
Common Stock Ownership.
Ii has been assumed that the
present pro rata and common owner
ship in all these companies by for
mer stockholders of the trust would
insure continuance of the same
old single control of all the compa-
MES into which the trust has by de-
cree been disintegrated This is err
/ rone""s ar1 ia based upon the as
'r'"d in"ffi"acy and innocuousness
4 Of '"dicial inirnctions
|oiuntary Reoraanizations of Other
Trusts at Hand.
The effect of these two decisions
has led to decees dissolving the
combinations of manufacturers of
electric lamps. a southern wholesale
srocers association. an interlocuto-
ry decree against the powder trust
with directions by the circuit court
compelling dissolution. and other
combinations of similar history are
now negotiating with the department
of justice looking to \ disintegration
by decree and reorganization in ac-
cordance with law. 1t seems posi-
BILE to bring about these reorganiza-
/ lions without general business dis
turbance.
Movement for Repeal of the Anti
Trust Law.
But now that the antitrust act is
seen to be effective for the accom-
plishment of the purposes of its en-
actment. we are met by cry from
many different quarters for its repeal
1t is said to be obstructive of bust
ness progress, to be an attempt to
restore old-fashioned methods of de-
structive competition between small
units. and to make impossible those
useful combinations of capital and
the reduction of the cost of produc-
ton that are essential to continued
prosperity and normal growth.
Lack OF Definitcness i'm the Statute.
-.