Omaha daily bee., 1911-12-06

der trust with directions bv tho circuit
court compelling dissolution and other
combinations OF a similar history are now
negotiating with the Department OF Jus.
tce looking to disintcgration by decree
aud reorganization In accordance with
law. II seems possible to brlng about
these reorganizations without general
business disturbance.
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 a cry from many different
quarters for its repeal II Is said TO be
obstructive OF business progress. to be
an attempt 10 restore ld-fashioned meth
DDS Of destructive competition between
small units. and TO make impossible those
useful combinations Of capital and the
reduction OF the cost of production that
are essential to continued prosperity and
normal growth.
I'm the recent decisions the supreme
court makes clear that there is nothing
In the statute which condemns combina-
lions of capital or mere bigness Of plant
organized to secure economy in produc-
ton and a reduction of its cost IL is
only when the purpose or necessary ef-
feet OF the organization and maintenance
OF the combination or the aggregation Of
immense size are the sitting Of competi.
ton. actual and potential. and the en-
hsncing 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
necessarily eliminates competition be.
tween the units thus combined. but this
elimination is in contravention OF the
statute only when the combination is
made FOR purpose OF ending this particu-
lar competition in order to secure con-
troll OF and enhance prices and create
monopoly.
Lack OF Deftniteness In the statute.
The complaint is made Of the statute
that 1t Is not sufficiently definite In its
description OF that which Is forbidden.
TO enable business men to avoid its VIOLA
tion. The suggestion is, that we NAV
nave a combination of two corporations.
which may run on for years, and that
subsequently the attorney general may
conclude that II was violation of the
statute, and that which was supposed bv
the combiners to be innocent then turns
out TO he combination in violation OF
the statute. The answer to this hvpo
to amass such stupendous capital as will
enable them to suppress competItion
control prices and establish a MONOPOLY
they know the purpose of their ac,a
Men do not do such a thing without hav-
Ing 1t clearly I'm mind. II what thew do
Is merely for the purpose OF reducing
the cost of production. without tba
thought Of suppressing competition bv
use of the bigness Of the plant thew arc
creating, then they can not be convicted
at the time the union is made nor can
they be convicted later, unless II hammer
that later on they conclude OF supprass
competition and take the usual methods
Tor doing So and thus establish for them
selves monopoly. They can. I'm such a
case, hardly complain If the motive which
Subsequently is disclosed Is attributed M,
the court to the original combination.
New Remedies suEEested.
Much is said of the repeal of this statute
ana OF constructive legislation intended I,
accomplish the purpose and blaze a. clear
path Tor honest merchants and business
men TO follow. 1t may be that such n
plan will be evolved. but submit that
the discussions which have been brourbt
out in recent days by the fear OF the CON
tinued execution OF the ANTITRUST lav
have produced nothing but glitterinp
generalities and have offered no line Of
distinction or rule of action as defipit.
and as clear as that which the sunreme
court Itself lays down in enforcing the
statute.
] see no objection-and indeed | can see
decided advantage-in the enactment of
law which shall describe and denounce
methods of competition which are unfair
and are badges OF the unlawful purposo
denounced In the antitrust law. The nj.
tempt and purpose to suppress a competI-
tor by underselllng him at a. price so nm
profitable as to drive him out of business
or the making Of exclusive contracts with
customers under which they are REQUIRED
to give up association with other manu-
facturers, and numerous kindred methods
for sitting competition and effectinr
monopoly, should be described with suffi-
cient accuracy in a criminal statute on
the one hand to enable the government 20
shorten its task by prosecuting single
misdemeanors 'instead OF an entire con-
spiracy, and, on the other hand, to serve
the purpose Of pointing out more in detail
to the business community what must be
avoided.
Federal Incorporation Suggested.
I'm a special message TO congress on
January 2 1910, ventured to point out
the disturbance to business that would
probably attend the dissolution of these
offending trusts. l said:
" But such an investigation and pos
sible prosecution Of corporations whose
prosperity or destruction affects the
comfort not only of stockholders, but Of
millions of wage earners. employees. and
associated tradesmen must necessarily
tend to disturb the confidence of the bust
ness community, to dry up the now flow
ing sources of capital from its places OF
boarding, and produce a halt i'm our pres
ent prosperity that will cause suffering
and strained circumstances among the
innocent many for the faults of the guilty
few The question which l wish i'm this
message to bring clearly TO the consider
alton and discussion of congress ~
whether, in order to avoid such a pos
sible business danger, something can not
be done by which these business comhina-
tions may be offered a means, without
great financial disturbance. of changing
the character, organization, and extent Of
their business into one within the lines Of
the law under federal control and super
vision, securing compliance with the anti
eta ttste