Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1911-12-14
First EpistIe of Mr.. Taft Deals
Altogether With the Pr5b-
lem of Trusts.
DEFENDS SUPREME COURT

~ ~ SCH@A0kC AIdeSCl5 " lc6i rs
aation for the consideration of congress
this winter.
Text Of the Message.
The tull text OF the message is as
follows:
To tue senate and House Of Representa-
lives:
This message is the first of several
which shall send to congress during the
interval! between the opening Of Its regu-
lar session and it's adjournment for the
Christians holidays. The amount of in
formation to be communicated as to the
operations OF the government, the number
OF Important subjects calling for COM
ment by the executive. and the transmits
ston tn congress of exhaustive reports of
special commissions. make it impossible
10 include in ono message of O reasonable
length q discussion OF the topics that
ought TO be brought to the attention of
the national legislature at it's first regular
session.
Supreme Court Decisions.
In MAJ last the supreme court handed
b%roush,. ny the United States to enjoin
the further maintenance OF the Standard
Gin Nt-St and OF the American Tobacco
trust, and TO secure their dissolution. The
.ciecisions arc epoch-Inaking and serve to
advise the business world a~uthoritatively
OF the scope amd operation of the anti
trust act OF lSJO. The decisions do not de-
part u any substantial way from the
previous decisions OF the court in con-
STRUNG and applying this important stat
ute, nul they Clarity those decisions by
3uGtser defining the already admitted eN-
cepttons To the literal construction of the
act. BY the DEGREES. they furnish Il use
1ul precedent as to the proper method Of
dealing with the capital and property of
Illegal trusts. These decisions suggest
the need and wisdom of additional or sup
elemental legislation to make it easier for
the entire business community to square
with, the rule OF action ard legality thus
finally established and to preserve the
benefit. Freedom and spur OF reasonable
competition without loss OF real efficiency
Or progress.
10 Change in the Rule.
statute in MS first section declares
In the form of trust or otherwise, or con-
sp..s.ey, in restraint of trade or commerce
nations" and in the second, declares
guilty of u misdenreanor every person
VINO shall monopolize or combine OF con-
spiye with any other person to monopolize
ANY part of the trade OF OF the
several states or with foreign nations"
IN two early cases, where the statute
was invoked to enjoin q transportation
rate agreement between Interstate rail-
road companies, 1t was held that it was
no defense to show that the agreement
al to rates complained of was reasonable
OF Common law, because it was said that
the statute was directed against all con-
tracts ni.l combinations in restraint of
trade whether reasonable at commo law
or not. 1T was plain from the record,
however. that the contracts complained
vi III t..f.5S CuGSs WVutu HOC nave OeCn
deemed reasonable at common law. In
subsequent cases the court said that the
statute s.ould be given a reasonable CON
stiucliun and refused to include within
rs inhibition, certain contractural re-
%straints OF trade which it dominated as
Incidental or indirect.
the court excepted from the operation of
the statute were instances which, at COM
mon law, would have been called reason
able. Ia the Standard Oil and Tobacco
cases, therefore. the court merely adopted
the tests Of the common law, and in de-
fning exceptions to the literal application
OF the statute. only substituted for the
test of being incidental or incorrect. that
OF benz reasonable, end this, without
and effect Of the statute. In other words,
all the cases under the statute which nave
now been decided would have been de-
cided the same way if the court had
originally accepted in it's construction the
rule at common law.
1t has been said that the court, by intro
ute common law distinctions, has enas-
cu}ated Il. This is obviously untrue. by
its Judgment every contract and combi-
nation IN restraint of interstate trade
with the purpose or necessary effect of
CONTROLLING prices by sitting competition.
or OF establishing in whole or part a mo-
tire statute. The most extreme critics
cannot instance q case that ought to be
condemned under the statute which is
not brought within Its terms as thus con-
strued.
The suggestion is also made tina the
supreme court by it's decision in the last
two cases has committed to the court the
underlined and unlimited discretion to de-
ter1n.f1e whether g. case of restraint is
within the terms OF the statute. This is
wholly untrue. A reasonable restraint Of
trade at comnon law IS well understood
and is c:sarly defined. It does not rest In
the discretion of the court. 1t must be
limited to accomplish the purpose of a
lawful main contract to which,. in order
that it ;l,all be enforceable. at all. 1t must
be inciasntal r. II exceeds the needs of
The test OF ~rcasonableness was never
applied by the court at onmon law to
contracts or combinations or conspiracies
or Whose necessary effect would be. to
stif'e competition. to control prices. or
establish, monopoiies. Tho courts never
assun,c1 power to a that such contracts
or combinations or co~nspiracles might be
lawful ~ the parties to them were only
moderate in the use of the power thus
nc too great and exorbitant prices. It is
true thai many theorists, and others en-
gagged IN business violating the statute,
have hoped that some such line could be
drawn By courts: but no court Of author
fly has ever attempted 1t. Certainly there
,fs nothing In the decisions of the latest
theory Of judicial discretion in enforcing
this statute can derive the slightest sane
ton.
Statute Q Matter Of Growth.
ut we en na Il ee for z an years prsp maki9 ss, this ns, stat !,
was enacted. The Knight case was dis.
c%ouraging AID seemed to remit to the
;aes and she su wnoss 1 tSe ssils q ppT tss t to as.
Slowly, however. the error Of that judg-
ment Yves corrected, and only I'm the last
three or four years has the heavy hand
cotnbisai .ons that have exercised such ar
absolute domlnlon over many Of our in-
dastrIes Criminal prosecutions have