The Birmingham age-herald., 1911-06-16
GROSSCUP ATTACKS THE SHERMAN LAW Says Even Now It Is Not
 Effective
  SPEAKS TO STUDENTS Judge Says This Country Must Recognize Trust and Monopolies as Something Necessary to
 Our Civilization

Iowa City, Ia, June 15.-Degrees were granted to 355 young men and women at the fifty-first annual commencement Of the State University of Iowa last night
 Judge Peter Grosscup of the United States circuit court at Chicago, delivered the annual commencement address.
 Declaring the Sherman act even as now interpreted an ineffective remedy In the Just complaint of the ordinary man against monopolies," Judge Peter 5. Grosscup of the United States circuit court of appeals proposed in the com mencement address before the University of Iowa today new method of dealing with trusts.
 ''To recognize combination and monop- oly as something necessarily here-square the law to the fact-and then, as con dition to granting corporate power at all reserve the right to regulate dividends" is the remedy Judge Grosseup advances.
 Judge Grosscups discussion of the rem edy proposed by him was prefaced by a review of the Sherman act in which he said:
 "As interpreted prior to May of this year the Sherman antitrust act was be- Iieved to be a weapon in the hands of the men who happened to constitute the administration at Washington, to destroy such specific monopolies and combina- tions as the administration chose to con- sider hurtful to competition in enter prise. Instead the Sherman act became a sunken mine over which nearly every | tkA f,,1a that would set it off, or keep 1t harm less, running direct to the office of the Attorney General at Washington.
 But will big business" continued Judge Grosscup, with no restraint hang ing over it, other than the Sherman act, as now interpreted, desist from being brutal? Will one of these big business enterprises. caught now and then em- ploying the prohibited accessory methods and ordered to rehabilitate, as the Stand ard Oil and Tobacco combinations have been ordered to rehabilitate prevent others from taking their chances along the same lines, or from taking chances along other lines? Reverting to his rem edy the judge continued:
 But to which government. the national or the state, shall be given the power to apply the remedy? My answer Is, that, in the case of the big so-called trusts, such, for instance, as the packers or the Standard oil company, the bulk of whose raw materials is drawn from states other than the company's domicile, or the bulk of whose finished product is sold in states other than the companys domicile, thereby bringing their business into interstate commerce. the principle I am urging should be applied by the national government, through such pro cesses as will make 1t practically com polling that enterprises of this kind or ganize as corporations under the United States laws.
 "To that extent, at least. I am for the new nationalism. By the hand of a sin gle sovereignty, and that the supreme sovereignty, can the principle, it seems to me. be effectively applied to the big so-called trusts. But this does not mean that the smaller, manufacturing and trad ing corporations in any given field of enterprise should be nationally incor- porated From these arises no monopoly. And where, among these smaller con cerns. combinations arise in unreason- able restraint of trade, the Sherman act as now Interpreted would probably be sufficient.