The Washington herald., 1911-05-16
bad" Trusts Are Hit Hard BY Standard Oil Decision


press restrictions Of prohibitions obtained
against the creation by an individual OF
a monopoly as such.
But, As It was considered. at least so
far as the necessaries Of life were con-
cerned, that individuals by the abuse Of
their right to contract might be able to
usurp the power arbitrarily to enhance
prices. one Of the wrongs arising from
monopoly, II came to be that laws were
passed by which prohibitions were placed
upon the power of individuals to deal un-
der such circumstances and conditions
as. according to the conception Of the
times. created a presumption that the
dealings were not simply the honest exer-
tion Of ones right to contract for his
own benefit unaccompanied by a wrong
full motive to injure others, but were the
of a contract or course of
dealing of such a character as to give
rise to the presumption of an intent to
inture others through the means, for in
stance, Of a monopolistic increase of
prices"
English Law Restraints.
The Chief Justice traced the develop
ment of the legal restraints upon monop-
olies through the English common law
up to and including the development of
the legal attitude toward monopolistic
combinations in the United States.
1T will be found that as modern con-
ditions arose." said the Chief Justice,
the trend of legislation and judicial de-
cision came more and more to adapt the
recognized restrictions to new manifesto
tions Of conduct or Of dealing. which 1t
was thought justified the inference of
intent to do the wrongs which 1t had been
the purpose to prevent from the begin
ming
He quoted the National cotton oil case,
arising in Texas. and decided by the Su-
preme Court. and the Shawnee compress
case of a later date, and said:
Without going into detail and but
very briefly surveying the whole field, It
may be with accuracy said that the
dread of enhancement of prices and Of
other wrongs, which il was thought
would flow from the undue limitation on
competitive conditions caused by con-
tracts or other acts Of individuals or
corporations. led. as a matter of pbulic
policy. to the prohibition or treating as
illegal all contracts or acts which were
unreasonably restrictive of competitive
conditions. either from the nature or
character of the contract or act or
where the surrounding circumstances
were such as to justify the conclusion
that they had not been entered into or
performed with the legitimate purpose
of reasonably forwarding personal in
terest and developing trade. but, on the
contrary, were of such a character Is
to give rise to the inference or presump
tion that they had been entered into or
done with the intent to do wrong to
the general public and to limit the right
Of individuals. thus restraining the free
flow of commerce and tending to bring
a hptrf tho aN-f1e CnNh enhancement n
prices, which were considered to be
against public policy.
Contracts Show Intent.
1T is equally true to say that the sur
vey Of the legislation in this country on
this subject from the beginning will
show. depending as It did upon the eco
nomic conceptions which obtained at the
time, when the legislation was adopted
or judicial decision was rendered, that
contracts or acts were at one time
deemed to be of such a character as to
justify the inference of wrongful in
tent, which were at another period
thought not to be of that character.
But this again. as We have seen, simply
followed the line of development of the
law of England"
The Chief Justice then took up In de-
tail the Interpretation of the first and
second sections of the Sherman law.
These are the vital sections of the law,
and the ones that have caused so much
in the business world as to
their construction The court said:
Let us consider the language of the
first and second sections. guided by the
principle that where the words are en-
ployed in a statute which had at the time
a well-known meaning at common law
i, 49, 10 80 tr,- |IAr-
presumed to have been used in that sense
unless the context compels to the con-
Jary.
"As to the first sections, the words to
De interpreted are: Every contract, COM
1ination in the form of trust or other
wise, or conspiracy in restraint Of trade
,r commerce . is hereby declared
% be Illegal
"As there is no room for dispute that
he statute was intended to formulate
rule for the regulation of interstate
md foreign commerce, the question is:
What was the rule which 1t adopted?
I'm view Of the common law and the
aw in this country as to restraint Of
rade. which we have reviewed, and the
effect which that history
must have under the rule to which we
lave referred, we think it results:
Law Restraints Trusts.
THAT the context manifests that the
Itatute was drawn in he light Of the
xfstfng practical conception Of the law
# restraint of trade. because it groups
Is within that class. not only contracts
which were in restraint Of trade in the
ubjective sense, but all contracts or acts
which theoretically were attempt to
yet which in practice had
.ome to be considered as in restraint Of
rade in bp ,ad sense.
THAT in view Of the many new forms
Il contracts and combinations which are
,eing evolved from existing economic
conditions, * was deemed essential by an
enAneration to make sure
hat no TO, m of Contract or combination
w which an undue restraint of inter-
tate or foreign commerce was brought
bout could save such restraint from
The statute under this
lew evidenced the intent not to destrain
he right to make and enforce contracts,
whether resulting from combination or
which did not unduly restrain
Interstate or foreign commerce, but to
rotect that commerce from being re-
trained by methods, whether old or new.
which would constitute an interference
hat is an undue restraint.
"And as the contracts or acts en-
,raced in the provision were not express
y defined. Isince the enumeration ad-
Iressed itself simply to classes Of acts,
hose classes being broad enough to en-
race every conceivable contract or COM
'ination which could be made concerning
rade or commerce or the subject Of such
commerce., and thus caused any act
one by any 6f the enumerated methods.
nywhere in ithe whole field Of human
l.