The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1911-06-14
PRESENTS SOLUTION TO
STUDENTS OF UNIVERSITY
Recognize Combination and
Monopoly and RaSsrve Right
10 Regulate Dividends
(By Associated Press.)

(By Associated Press)
Iowa City, Ia, June l4.-Declaring
the Sherman act even as now IN
tenpreIed an ineffective remedy In
the just complaint of the ordinary
nan against monopolies' Judge Pet
er S, Grosscup OF the United States
circuit court Of appeals, proposed in
the commencement address before
the University OF Iowa Today a new
method Of dealing with trusts.
ITO recognize combination and
monopoly as something necessarily
here-square the Jaw to the fact
and then, as a condition to granting
corporate power at all, reserve the
right to regulate dividends" is the
remedy Judge Grosscup advances.
Judge Grosscups discussion OF the
remedy proposed by him was prefac-
ed by a review of the Sherman act
in which he said,
"As interpreted prior TO May OF
this year the Sherman antitrust act
was believed to be a weapon in the
hands OF the men who happened TO
constitute the administration at
Washington. to destroy such specific
monopOlies and combinations as the
administration chose 60 consider
hurtful 10 competition in enterprise.
llnstead, the sherman act became a
sunken mine. over which nearly ev.
cry form of enterprise had to sail
the fuse that would set il off. or
keep ii harmless. running direct to
the office of the attorney general at
Washington
But will big business" continued
Judge Grosscup, with no restraint
hanging over ii other than the Sher-
man act as now interpreted, desist
from being brutal? Will one Of
these big business enterprises,
caught now and then employing the
prohibited accessory metAoQs and
ordered TO rehabilitate as the Stand
ard Oil and tobacco combinations
have been ordered to rehabitate. pre-
vent others from taking their chanc-
es along the same lines. or from
taking chances along other lines
lRegerting to his remedy the Judge
continued.
Who Shall Apply the Remedy
But to which government, the ma
tional or the state, shall be given
the power 10 apply the remedy My
answer Is, that, ID the case OF the
| big so-caled trusts, such. for in
stance, as the packers or the stand
ard OH company, the bulk of those
raw material Is drawn from states
other than the company's domicile
or the bulk of whose finished pro
| duct Is sold in states other than the
| c0mpany's domicile, thereby bring
ing their business into interstate
commerce, the principle | am urging
should be applied by the national
government, through such processes
as viii make It practically COMPEL.
ing that enterprises of this kind or
| ganize as corporations under th'
United States laws.
ITO thar extent, at least ] am fol
the new nationallsm. by the hand
Of single sovereignty, and tnat the
supreme sovereignty, can the princi
pie, it seems 70 me, be effectively ap
piled to the big s0.called trusts. Bui
this does not mean that the smaller
manufacturing and trading corpora
tions in any given field Of enterprise
should be nationally incorporated
Rrom these arises no monopoly. AnC
where, among these smaller concerns
! combinations arise in unreasonable
4 restraint Of trade, the Sherman ac
as now Interpreted would probabll
be sufficient.
Bnt where should be run the linl
ot separation you ask, between th0s
10 be nationally incorporated aax
those left to the states, and hov
separate those 10 whom q restriction
as to dividends IS to be applied from
those TO whom 1t Is not applied
| hOngh nationally ia, orporatedg Nj.
answer N that national incorporation
should depend on whether the bus
. nges involved Is chiefly nwlonal 0
chiefly locai--a feasible measure D
this being the percentage Ut Ia
y whole business that Is local and thi
percentage that Is not nol local an
lthat whether the restriction al tt
dividends should appiy or NOT shoul
depend CD whether the business II
It's special field OF enterprise, pra1
ticaiiy excludes effective compel
. lfion or whether II doae not-a feas
gble measure Of this being the pc
centage of the whole business of tina
f.eld that II done by the cOmpan
+ involved IN other words. II the bal
of the business Of the company !
national, let the nation BE- the parer
and regulator 0f the cooperative at
yaniages under which il Is condnc
Ell. and II il absorbs enough of "a
business of the line III which ii