The Nevada County picayune. (Prescott, Ark.) 190?-current, 1911-12-08
among the people OF the United
Stafp1p
Common.Stock Ownership.

ent prorata and common ownership
In all these companies by former
stockholders of the trust would insure
| q continuance OF the same old single
control of all the companies into
which the trust has by decree been
disintegrated. This is erroneous and
Is based upon the assumed inefficacy
and innocuousness of judicial injunc-
tons. The companies are enjoined
| from cooperation or combination:
they have different managers, direc-
tors. purchasing and sales agents. II
all or any of the numerous stockhnid-
ers. reaching into the thousands. at
.afaPt 20 secure concerted action OF
the companies with view to the con
troll OF the market. their number Is so
| large that such an attempt could not
we'll be concealed and It's prime NOV
ers and all its participants would be
at once subject to contempt proceed
ings and Imprisonment OF summary
character. The immediate result oil
the present situation Will necessarily
be activity by all the companies IN
der different managers, and then com
petition must follow, or there Will
be activity by one company and stag
| nation by another. Only short time
will inevitably lead to a change IN
ownership of the stock. as all oppor-
tunity for continued cooperation must
disappear Those critics who speak
of this disintegration in the trust as
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 Cd
| ject Is made plain by the decree and
whose inhibitions are set forth with
detail and eomprehensiYeness uheA-
ampled in the history OF equity 1uris,
prudence.
The effect of these two decisions has
led to DEGREES dissolving the combina,
tion of manufacturers of electric lamps,
southern wholesale grocers' associa-
ton, an interloeutOry decree against
the powder trust with directions by
the circuit court compelling dissolu-
llOiip anu OlIiei tOilBlIitiliOl5 Vi u A'AA'
liar history are now negotiating with
the department of justice looking to
disintegration by decree and reorgan-
ization in accordance with law. X
seems possible to bring about these re
organizations without general business
disturbance.
Movement for Repeal of the Antitrust
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 compei.
ton between small units, and 10 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
economy In production and reduc.
ton of its cos 1t is only when the
purpose or necessary effect of the or
ganization and maintenance OF the
combination or the aggregation Of I'M
mense size are the sitting of competi-
ton, actual and potential, and the en-
HANGING of prices and establishing a
monopoly. that the statute Is violated
Mere size Is no sin against the law
The merging CT two or more business
plants necessarily eliminates competi
ton between the units thus combined.
tut this elimination Is In contravention
/ OF the statute only when the combina-
! ton is made for purpose of ending this
particular competition In order to Sc
cure control OF. and enhance. prices
and create monopoly.
Lack of Definiteness In the Statute.
/ The complaint is made of the statute
/ that it IS not sufficiently definite In
/ its description of that which Is forbid
den. to enable business men to avoid
its violation. The suggestion Is, that
we may have combination OF two
1 generations, which may run on for
years, and that subsequently the attor-
ney general may conclude that II was
a violation of the statute. and that
which was supposed by the combiners
to be innocent then turns out to be a
combination IN violation OF the stat
ute. The answer to this hypothetical
case Is that when men attempt to
amass stupendous capital as will en-
able them to suppress competition,
control prices and establish a monop
j oily they know the purpose of their
acts. Men do not do such a thing
without having II clearly in mind. II
what they do is merely for the purpose
of reducing the cost of production,
without the thought OF suppressing
competition by use OF the bigness OF
the plant they are creating. then they
cannot be convicted at the time the