The Denison review. [volume] (Denison, Iowa) 1867-current, 1911-12-06

WITH the cOnOltlOnS winch the congress
has declared shall exist among the
people Of the United States
Common Stock Ownership.
1t has been assumed that the pres
ent pro rata and common ownership in
all these companies by former stock
holders Of the trust would insure a
continuance Of the same old single con-
troll of all the companies into which
the trust has by decree been disinte-
grated. This is erroneous and is based
upon the assumed inefficacy and innoc.
uousness of judicial injunctions. The
companies are enjoined from co-opera'
ton or combination: they have differ.
ent managers. directors. purchasing
and sales agents. II all or many OF
the numerous stockholders. reaching
into the thousands. attempt to secure
concerted action of the companies with
q view to the control Of the market
their number Is so large that such an
attempt could not well be concealed.
and its prime movers and all its partic-
ippnts would be at once subject to con-
tempt proceedings and Imprisonment
of a summary character. The immedl-
ate result Of the present situation will
be activity by all the COM
panies under different managers, and
then competition must follow or there
will be activity by one company and
stagnation by another. Only short
time will inevitably lead to change
in Ownership Of the stock. as all OPP
pcrtunity for continued cooperation
must disappear. Those critics who
speak of this disintegration in the trust
as a mere change Of garments have not
given consideration to the inevitable
working of the decree and understand
little the personal danger Of attempt
ing to evade or set at naught the SOL
emn injunction Of court whose object
is made plain by the decree and whose
inhibitions are set forth with detail
and comprehens!veness unexampled IN
the history of equity Jurisprudence.
Reors anizations Of Other
Trusts at Hand.
The effect of these two decisions has
led to DEGREES dissolving the combina-
ton of manufacturers Of electric
lamps. southern wholesale grocers'
an interlocutory decree
against the powder trust, with direc-
lions by the circuit court compelling
dissolution. and other combinations Of
a similar history are now negotiating
with the department of Justice looking
to a disintegration by decree and re-
organization in accordance with law.
1t seems possible to bring about these
organizations without general bust.
ness disturbance.
Movement For Repeal Of tho Anti
trust Law.
But now that the antitrust act Is
seen to be effective for the accomplish.
ment Of the purpose Of its enactment
we are met by cry from many differ
ent quarters for its repeal. 1t is said
to be obstructive of business progress
to be an attempt to restore old fash.
toned methods of destructive competi.
ton between small units and to make
impossible those useful combinations
Of capital and the reduction Of the cost
of production that are essential to con.
tinued prosperity and normal growth
In the recent decisions the supreme
court makes clear that there is moth.
ing in the statute which condemns
combinations Of capital or mere big
ness Of plant organized to secure econ.
omy in production and a reduction OF
its cost 1t is only when the purpose
or necessary effect of the organization
and maintenance Of the combination
or the aggregation Of immense size are
the sitting Of competition. actual and
potential. and the enhancing OF prices
and establishing a monopoly that the
statute is violated. Mere size Is no
sin against the law The merging OF
two or more business plants necessarl-
~ eliminates competition between the
units thus combined. but this ellmlna-
ton is in contravention of the statute
only when the combination is made ror
purpose Of ending this particular COM
petition in order to secure control OF
and enhance prices and create mo-
nopoly.
Lack Of Definiteness In the Statute.
The complaint is made OF the stat
ute that it is not sufficiently definite
in it's description Of that which IS for
hidden to enable business men to avoid
its violation. The suggestion is that
we may have a combination OF two
corporations which may run on Tor
years and that subsequently the at
torney general may conclude that 1t
was violation Of the statute and that
which was supposed by the comblners
TO be innocent then turns out to be
combination in violation Of the statute
The answer to this hypothetical case
is that when men attempt to amass
such stupendous capital as will enable
them to suppress competition. control
prices and establish monopoly they
know the purpose Of their acts. Men
do not do such thing without having
it clearly in mind. If what they do Is
merely for the purpose Of reducing the
cost Of production. without the thought
of Suppressing connection by use OF the