Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1911-12-13

VI trade at common law il we'll mn
aerstood and is clearly defined. I,
does not rest in the discretion Of IN,
court IL must be limited 20 accom-
phsh the purpose Of a lawful MAR
contract TO which, in order that /,
snail be enforceable at all. II mu.,
be Incidental. IL IL exceed the need,
OF that contract, IL is void.
The test OF reasonableness wa,
never applied by the court al com
mon law 10 contracts or combination,
OF eonspiracies In restraint Of trad,
whose purpose was or whose neces
sary effect would be 20 stifle com
petition, to control prices. or establish
monopolies. The courts never assum
ed power to say that such contract,
or combinations or conspiracies nigh,
be lawful IL the parties TO them ver,
only moderate in the use OF IN,
power thus secured and did not exac,
from the public too great and exor
bitant prices. II is true that many
theorists, and others engaged In bus
mess violating the statute, have hop
ed that some such line could be
drawn by courts; but no court OF
authority has ever attempted IL. Ger.
tainly there is nothing in the decision.
OF the latest two cases from which
such a dangerous theory Of judicial
discretion in enforcing this statute
can derive the slightest sanction.
Force and Effectiveness of Statute n
Matter Of Growth.
We have been twcnty.onc years
making this statute effective for the
purposes for which il was enacted.
The knight case was discourapinp
and seemed 90 remit 10 the states tho
whole available power 10 attack and
suppress the evils Of the trusts.
Slowly, however, the error Of that
judgment was corrected, and only in
the last three or four years has the
heavy hand of the law been laid up
on the great illegal combinations
that have exercised such an absolute
dominion over many of our industries.
Criminal prosecutions have been
brought and a number are pending.
but juries have felt averse 10 con.
victing for iail sentences. and Judges
have been most reluctant 10 impose
such sentences on men of respectable
standing in society whose offense has
been regarded as merely statutory.
still, as the Offense becomes better
understood and the committing of il
partakes more of studied and delibcr.
ate defiance Of the law, we can be
confident that iuries will convict in.
dividuals and that Jail sentences will
be imposed.
The Remedy in Equity by
Dissolution.
In the Standard Oil ease the m.
preme and circuit courts found the
combination 20 be "A monopoly Of the
interstate business of refining, trans.
porting, and marketing petroleum and
It's products. effected and maintained
through thirty-seven different corpo.
rations, the stock Of which was held
by a New Jersey company. II in
effect commanded the dissolution Of
this combination. directed the transfer
and pro rata distribution by the New
Jersey company Of the stock held by
IL in the thirty corporations TO
aud among its stockholders; and the
corporations and individual defend.
combining 10 restore such monopoly I;
and all agreements between the sub
sldiary corporations tending TO pro.
duce or bring about further violations
OF the act were enjoined
In the Tobacco case, the court found
that the individual defendants. TWEEN
ty.nine in number, had been engaged
in successful effort 20 acquire com
plete dominion over the manufacture,
sale, and distribution Of tobacco in
this country and abroad, and that
this had been done by combinations
made with purpose and effect to
stifle competition, control prices, and
establish a monopoly, not only in the
manufacture Of tobacco, but also Of
tin.foil and licorice used in its man.
ufacture and Of it's products Of
cigars, cigarettes, and snuffs. The
tobacco suit presented far more
complicated and difficult case than
the Standard Oil suit for decree
which would effectuate the will Of
the court and end the violation Of the
statute. There was here no single
holding company az in the case OF
the Standard Oil Trust. The main
company was the American Tobacco
company, manufacturing, selling,
and holding company. The plan
adopted TO destroy the combination
and restore competition involved the
redivision Of the capital and plants
Of the whole trust between some OF
the companies constituting the trust
and new companies organized for the
purposes Of the decree and made
parties 10 It, and numbering, new and
old, fourteen.
Situation After Readjustrent.
The American Tobacco company
(old), readjusted capital, s92,000,00o;
The Iiggett & Meyers Tobacco com.
pany (new), capital. s67ooo,0OO; the
i. Lorillard company (new), capital,
s47, 100000; and the X. j. Reynolds
Tobacco company (old), capital s7,'
525. 900, are chiefly engaged in the
manufacture and sale of chewing and
smoking tobacco and cigars. The
former one tin.foil company IL divid'
ed into two, one Of ss25,000 capital
and the other OF 100000. The one
snuff company is divided into three
comnanies ona with a capital OF sl5,.