The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-11-01

All that the Suprem" court mas accom-
plishcd ia 20 require the person making
the contract 80 go one step further and
ascertain whether the effect Of his contract
upon trade is reasonable or unreasonable
res rsnt.
The common law has been cited frequently
30 sustain the sherman antitrust Law. Mr.
Justice White emphasizes tn" fact thai
neither the courucu Law nor tho sherman
law dcnoVn,,s monopoly IN the "oncre'e'
But YOU Will Sr1~Vn ~ vain for any common
Inv which Nagueiy declared that every
contract. combination or agreement IN
restraint of trade shall be unlawful The
common law denounced enCrossing and then
specifically defined what should I've deemed
Crgrossing The common Law denounced
regrating aud then spcciflcallv defined what
should Uo deemed tcErating The common
law denounced forestalinG and then
specifically defined what should be deemed
forestalling and II is lust AZ this eNa"t point
that tho sherman law fails hopelesslv. and
its failure j. uf prodisious Consequence.
The real vcc IN th" treatment of the
whole problem i IN the attempt 10 legis-
late solely against tn" result w OBJECT OF
n series of acts instead of specifically de-
nninE and prohibi'uc these acts As
the sherman Law nov stands every con
tract IN unreasonable restraint " trade
is unlawful Bu' since under section no
tim, oT - making or laterrNcept the httor-
ney.Gcuori'. and sine" h" can never know
and 500 tho millions Of contracts and agree
ments Nhirh IN the process of building
up great industries are made and entered
into II follows that he must and does wait
untu 10y the painful processes Of growth
tho great industry IT, knit together in one
grand unit of bus ness and then. Judging
IT as whole, # n" ends il IN Contravention
of tho sherman antitrust law he proceeds
tO pan n - pieces
l. seems clear 80 mo that the sherman
. law cannot possibly he made cNective in
e\tarminatinE tho real owl without carry
ing with n too large n sacrifice Of the whole
Industrial fahrir. and that II should he
arsomtclv repealed and Il new policy or
scheme Of :l~atton be inaugurated
tu, Co.,, policy must have inherent in
II tho ,cutral idea that competition IL the
final Law ot all life. but that IT Is growth
Jest a. cooperation - n growth that If Is
tho law Of trade and barter. but not the
la" Of statutes
To he e,aCtl j. not competition which
we seek TO maintain. but the uuhindered
rlEht 10 compete We do not make men 20
iG'o business 20 compete with others. We
maintain lust laws 80 that II a man chooses
to 80 into business and has the efflCienCv
20 w.u in the contest he shall not be mo-
concrete thing to be preserved II is Il
state Of Industrial lie which may eHist
at one period in tho sharpcst and most
active form. and vet IL may disappear a.
another, because the occasion does not
invite IT, II is n state OF industrial liberty
md economic freedom II must be free
bat not by coddlinE the inefficient or hold
Ing every one back for the laggard. II is
hound TO mean a reductioh of the number
l,.4
preparation Of the thing competed for.
In the hard struggle of industrial and bust
ness life there must be an elimination Of
those unable TO endure il. but this elmiha-
ton should he solely upon the inability Of
those eliminated TO survive an honest con-
test waged under the most enlightened
rules Of business warfare.
What is the safest. soundest and wisest
course 10 pursue7 We must in my opinion.
finally set ourselves to the task of increasing &
ana strengthening these initial safeguards
10 the end that the special advantage CON
ferred by charter powers shall he conferred
only when every step in the process OF
incorporation shall be truthtully disclosed
on the face Of the incorporation. II is
bound to come 20 this. that the concern
proposing 30 assume corporate form must
he compelled to put behind every issued
share Of stock the real value which the
tion of those Who buy the stock but TO in
sure that IL will not lower the standard of
rs product 10 force n dividend on excessi re
capitalization and tend TO demoralize the
industry in which II Is engaged.
The Federal Government should require
corporate concerns before entering the
field Of interstate commerce not merely IA
obtain a license but 10 submit its inCor-
poration, it's status. It's true condition 20 a
I'D Tod fpr tbat A.,
the very foundation of interstate commerce
the Federal Government would take a good
grip upon the instruments and agencies
engaged IN II and would hold that griI
against the commission of economic wrong
and outraRes. Just IA sure as there is a
problem the fundamental difficulty is IN
the slipshod way companies go into inter
state commerce and the unsound and loose
way in which they are Incorporated II
the States continue TO issue blanket charter,
with no safeguards and men choose tC
clothe their enterprises with these charter,
the Federal Government could simply
reject them as unit agencies TO enter upon
the great field Of interstate commerce
IL seems 10 me that we could then proceed
10 enact some specific laws for their guild
ance and control. These laws should no
have for their object the prevention of larg,
industrial business They should not be
trial units They should be drafted al
an industrial code. prohibiting the stifnl
OF competition. seeking rebates from rail
roads. entering into factors agreements
the purchasing by one corporation OF tn,
stock and control OF another and sll tn,
various other means resorted to to obtain
undue and unfair advantage in commerc,
and trade. The rules OF the game shoult
be plain and specific. A foul should b,
severely punished and the player ruled out
The President began his day here will
an exhibition OF mine rescue work by tn,
rescue squads OF mines in the Pittsburl
coal district under the direction OF tn
United States Bureau OF Mines. II wa,
held on the Forbes baseball field. the ANA
teur crews OF rescuers competing in rescu
demonstrations for prizes which wer
later presented to them by the Presiden
The rescue squaos, protected with theil
grotesque oxygen helmets. stood at the
mouth of an immense steel tube laid scros
the ball field. Inside the casing was I
heavy charge Of black powder and Goa
dust and an electric connection was ru,
from the explosives TO the President
stand At the signal Mr. Taft close,
the switch. There was a flash Of fire from
the openings in the tube and a roar tina
echoed from the nearby buildings
column Of dense black smoke poured ou
from the tube. Heads down. the rescu