The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1911-01-03
The Trnst Cases.

EHofLS OF the naLlOnal aQmlnlSJra-
ton to break up several Of the So
called trusts will cuIminate this
week in the hearing OF the Standard
OIL and American tobacco cases be-
fore the Supreme Court OF the United
States aud the outcome of these
cases is OF transcending importance
as 1t VIII settle for good and all the
actual eject of the Sherman anti
trust law respecting the extent to
which large corporations may go in
carrying on Interstate commerce.
The Standard OIL and the Tobacco
cases put the Sherman antitrust law
to the, most crucial test to which it
has been subjected during the twenty
years Of ats existence. The corpora
ton tax cases, which wiz also come
up, place on trial the power OF the
federal government over corpora
lions. The contention has been made
that II the Standard OIL and the To-
bacco organizations are dissolved,
the government will be forced to Ii
cense corporations in order to allow
legitimate business to be carried on
The corporation tax decision may
define the power of the federal gov
eminent over corporations so as to
guide this proposed subsequent legis-
i6tioR.s incidentally, about ,s25, 080,-
0S0sln taxes depend upon the de-
clsion.
Should the contention of the de-
fendants be upheld, the result would
likely be another far-reaching agita-
ton having for its object further
legislation changing the funda-
mental law governing corporations
in general, $50 g..f
s4It has been suggested that good
way of preventing corporate abuses
would be to change the law ty
which. corporation is regarded as
a legal person, not subject to crimil
nal punishment, and make the con-
stttuent members thereof, share
holders as well as officers and di-
trecters, personally responsible for
wrong doing while yet retaining the
legal entity of the corporation. A
few jail sentences would probably
have a most wholesome effect in
forcing corporate officials more
strictly to observe the law.
But, the present litigation covers
not so much the ordinary corporate
abuses as the greater evil of monop-
oily, which is viewed in certain as
poets under present law as being en-
tirely lawful and legitimate ex-
pansion of business. The dissolu-
ton of big holding companies,
like the Standard Oil Company, may
be effectual in remedying the evil;
andit is so hoped although the task is
dificult and may require even much
more work and still further legisla-
ton to bring about the desired re-
suit.
There are bard trusts and no donbt
good ones that observe the law both
in form and intent. The good, how
ever, seems to merge into the bad
when by the size and extent of its
operations even lawfully conducted
corporation becomes a monopoly in
restraint Of trade. If the Sherman
antitrust law is upheld according to
the contention of the government, a
trust in restraint OF trade by reason
of its big and powerful size will be
classed as bad in the eyes of the
law no matter how lawfully its busi-
ness is conducted and 10 matter how
good the intentions OF its managers.
In the pending trust cases the
chief questions to be solved are to
what extent corporate concern
may lawfully go and still be within
the limitations of the anti-trust law
and whether concern like the
OIL Company IS efficiently
engaged in commerce, directly or in
as to be within the purview
OF the act. AS the question of mo-
uopoly is one that has been sorety
agitating the people of late years,
the importance of these cases is OBJ
vious and they will no doubt mark