The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-06-06
M0hENTOUS TRUST
REGULATION BEHIND
CLAPP RESOLUTION
Would Make Code to Sup
plement Sherman
! Law.
AIMS TO SAVE PIECES
OF BROKEN COMBINES
Congress Faces Two Paths and
Inquiry Will be Made as to
Which Is Preferable.
By JUDSON c. wELLIvER.

An innocent looking resolution intro
duced by Senator Clapp the other day,
and passed by the Senate without COM
ment, discussion, or attention. marks
the initiation of one of the most mo-
last two or three decades.
Nobody would suspect what was in
Volved, from the terms of the resolu-
ton. 1t authorizes the Committee on
Interstate Commerce, of which Mr.
Clapp is chairman. to hold hearings,
summon witnesses, send for persons and
papers. administer oaths, and employ
clerical and stenographic help.
Perfectly conventional in form, the
resolutions purpose is nothing less than
to investigate the legislative needs
which will grow out of the decisions
against the Standard Oil and Tobacco
trusts
Must Save the Pieces.
Graphically explaining conditions
which are considered to demand such an
inquiry and legislation, a Senator said:
The Sherman law has proved itself.
1t has blown up two of the biggest
trusts. By the same reasoning. it will
blow up more The pieces will be fall
ing around US pretty soon, and they
need to be caught and reconstructed in
10 some sort of business structure that
can do the work that these trusts did
under the old order. We don't want the
pieces to hit us when they come down.
We want to save en-
Conservative and constructing legis-
latVe opinion is fast developing the
sentiment that something must be done
10 provide for safe and proper re-
organization Of many great Combina-
tons. 1t is considered inevitable that
these combinations will be taken to
pieces under the antitrust act, in the
not distant future. The tone and SUBJ
stance of the decision in the two cases
lately decided has ended all doubt of
this. The officials of the Department
Of Justice are at one with the expert
enced members of Congress on this
point The question is, what is to be
done about it.
Operation Within the Law.
First" said the Senator already
quoted. the Sherman act will not be
The public would not allow it,
Congress would not dare undertake II.
1t needs not to be changed, but to be
If combinations are or
dered dissolved, there must be-a way to
control the properties which compose
them. Nobody has IN mind to rip I'D
pipe lines, wreck ref1nerles, and all that
sort of thing. They must be provided a
way to continue operating, within the
law. So We need a law that will give
them the chance"
Whether ii shall be national incorpor-
alton or national license and regula ton,
statesmen are turning at
tention to the necessity for doing some
thing that will make proper reCOnstruc-
ton OF business organisms possible. II
there is no provision of new national
laws, then the owners Of properties that
are ordered reorganized must again as
sumo that State laws meet the intent of
Congress, and they will reorganize un-
der State domination.
To get a national incorporation or reg
ulative code passed and into operation
before the combinations all nave need
TO reorganize their business methods is
the problem.
The Clapp resolution, it is explained,
looks to gathering information as to
what ought and is possible to be done
1t is intended to have the committee, OF
a subcommittee, hold hearings in Wash
ington and other places after Congress
adJourns.
Two Broad Paths.
Hearings will be given to men of big |
business, flnanciers, managers, econo- (
mists, and publicists. with a view to |
determining the lines on which legisla- |
ton should be constructed which will |
meet the needs of the times.
TWO distinct paths have already been
blazed. Congress may enter either.
The Sherman law designs to preserve
and insist upon competition. On the
other hand, Judge Gary insisted that
is impossible, and that the
most minute regulation is necessary,
with the privilege of maintaining great
Which shall 1t be?
Judge Gary has with him the extreme
capitalists and the extremely socialist
cally inclined people. The moderates
believe that competition should be pre-
served and given a large part in max
ng prices and conditions of business.
The next great legislative movement
will indicate which of these two paths
he po,10trv is 70