Bisbee daily review., 1911-05-24
HENRY CLEWS VERY
 MUCH GRATIF|ED
Broad Minded Interpretation of Antitrust Law Helps
 Market

NEW YORK, May 23.-Stock ex change securities have this week cordially reflected the broad-minded interpretation of the Sherman law contained in the supreme courts decision in the Standard oil case.
 So far as the oil company itself is eoncerpSd, the ruling could scarce ly have been more drastic, for 1t Leaves the corporation no choice but TO dissolve and abandon it's present combination method of doing busi. ness. This will involve the distribu- uon of the corporations assets of all kinds among it's stockholders and the re-establishment of what are at present subsidiary companies on a practical working basis as indepenu- ent concerns.
 It is a process which means in it's turn the division of the securities of the subsidiary organizations among the many holders of the at present parent organization. The result, it will be seen, is not necessarily a great hardship, aside from the tre, mendous amount of clerical work in- volved.
 While every effort will, of course, be made to comply with the court s decree. the fact will remain that the ownership of the various subsidiary organizations will still remain under the control of the majority ownership of the present holding company. The court provides that the constituent companies may contract and agree with each other. There will prob ably, therefore, be no serious man cial losses to stockholders.
 The Broader Question
 But it is the broader question in. yolved in the decision that is re sponsible for the relief that has been shown in financial circles since the decision was promulgated. The court has given a most unexpected interpretation to the statute by de clariDg that it forbids only unrea- sonable restraint of trade-restrainl bv which the public at large is a sufferer.
 The Sherman law was enacted pri marily to put on the national statute books the penalties of the common law in regard to trade resrra~nt. This is something that Senator Hoar very clearly expressed during the period that the Sherman law was under discussion before it's enactment. He showed that there was not any com mon law of the United States and that the common law prevailing in the separate states of the union could not. as such, be enforced by the fed eral courts by means of any penalty or punishment. This explanation af- lords considerable light on the dc cision that has just been announced, for it follows the common law prln' ciple that restraint of trade to be punishable must be unreasonable that Is to say, it must restrain com petition to an extent that will cause direct harm to the public.
 On this broad ground. 1t is evi- dent that our industrial combinations that do not injure public interests have now nothing to fear from the sherman law. Instead of killing this statute our supreme court may bC said to have vitalized it. Chief Jus l tice White very properly intimatet \ that by applying the rule Of reason | to the act instead of following il literally the court has probably saved the statute from condemna ton as an unconstitutional enact ment.
 A literal interpretation of the lav
 would mean impairment of propert' rights. in obvious violation of con stitutional rights. A gratifying fea ture is the fact that the suuremi court bench is virtually unanimcu' in it's attitude on the trust question The decision rvfif aO a long way to wards removing the feeling Of dis crimination that has existed agains industrials as a class because of tho Hear that their entire form of organi zafion was sntag1nistic to the pro i visions of the antitrust law There is no longer occasion to fear suci A condition in case of those of oul
 great industrial combinations tha are under the direction of men O integrity and ability and which d. not seek by unfair means to mo nopolize the industries with whic' , they are connected.
 Market Greatly improved |. The markets technical situatio , has unouestionablv been greatly in ; proved as a result of the suprem ? courts action. During the recer ' long continued period of dullness an denression public narticipation in tn } stock market reached very negligibl proportions. Many small holders b r came discouraged and sold out, an
 among others the disposition was enter short commitments. Thu ! when the full significance of tf courts ruling on the industrial situ