New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-30
THE RIGOR OF 4 REASONABLE

The decision Of the United states Su'
preme Court against the so-calleu ~
bacco Trust disposes Of the notion tnac
the Interpretation of the sherman law
"in the light of reason had weakeneu
that act The lower court had followed
the atrictest and most literal construc-
tion Of the act. which made II. IN the
celebrated illustration used by the pre-
siding Judge. forbid even combination
between two previously independent eX-
nressmen driving wagons between two
villages i'm adjacent states. Yet IT found
certain Of the defendants. such as the
British Tobacco Company and the United
Cigar Stores Company. not operating ID
restraint of trade The Supreme Court
reads the word undue" into the law
and vet it finds guilty these defendants
exculpated by the lower court.
There We have q practical test OF the
effect of applying the statute in accord
ance with "the light of reason It has
certainly lost none Of its teeth The
condemnation Of the Tobacco Trust Is
a. sweeping as language could make H.
Unlike the lower court, with its strict
literal Interpretation. which many allege
ia be necessary to give force and effect
10 the law. the Supreme Court finds
nothing 70 palliate in the combination
history No suggestion is 10 he found IN
Chief Justice Whites opinion that this
is good trust; indeed. less is likely
to be heard IN the future Of the idea
prevalent i'm some quarters since the
Standard Oil decision that the Supreme
Court recognizes such thing as a good
trust" or a good monopoly This pres
ent opinion and the drastic application
Of the statute to this tobacco comhina-
ton. in whose conduct the lower court
found little ground for complaint, VIII
dispose of the notion that IN interpret
irg the sherman act according TO THE
light of reason the court was making
il fit modern conditions" and was recog-
nlzinc the "inevitability Of the combina-
ton and Capitalization of Industry
If Is plain that what the court had in
ltllIlU WAS iIl liidl a N'ilibiilbl ANn IAiSii'
resort to the familiar devices Of the
trusts SO long as il exhibited n Ger
tain moderation. On the contrary, in
Interpreting the act in "the light of rea-
son" the court clings to the common
law view Of the degree in which trade
may he restrained And the common
law is extremely severe upon monopoly
and knows nothing of good trusts 1t
tOlerateS the restraints of trade which
are incident to Il competitive system and
only those-the restraints which are
"rea sonabe.' essential 10 the carrying on
Of business. 10 forbid which would de-
stroy all business precisely as the enc
mics of the Sherman act. declaring II
forbade every restraint. even partner
ship between two competing cart driv-
ers. said it would destroy all business.
The practical question of what the
law permits and what disintegration and
reorganization are necessary TO bring
combinations which have rashly fol-
lowed the apparently successful foot
steps Of the Standard Oil Company and
the Tobacco Trust into harmony with
the Sherman act. interpreted in the
light If reason" will he made clearer
when the Tobacco Trust submits 10 the
lower court its plans TO carry on inter
state commerce in accordance with law.
Six months are given TO the comhina-
ton in which to do this. and the time
may be extended two months longer. The
lower courts opinion as TO what steps
are necessary to abide 10y the decree
just rendered may he appealed from 70
the Supreme Court. and thus the country
may reach final decision on the posi-
| tive side rs Ia exactly what is per
mitted