The New era-leader. (Wagner, Charles Mix County, S.D.) 1911-1912, 1911-12-15

20 c~onfacate the property and capital
Of the Offending trusts. Methods Of
punishment by flne or imprisonment
Of the Individual offenders. by ine of
the corporation. OF BY forfeiture OF its
goods IN transportation. are provided.
but the proceeding In equity IL 4 D .
cific remedy to stop the operation OF
the trust by injunction and prevent
the future use Of the plant and capital
IN violation Of the statute.
Effectiveness Of Decree.
venture to say that not In the his
tory OF American law has q decree
more effective for such a purpose
been entered by a court than that
against the Tobacco trust AS Circuit
Judge Moves said In his judgment ap-
proving the decree:
"The extent to which 1. has been
necessary To tear apart this combina-
ton and force 1t into new forms with
the attendant burdens ought I o dem
onstrate that the federal antitrust
statute is a drastic statute which &C
complishes effective results; which SO
long as it stands on the statute books
must be obeyed, and which cannot
be disobeyed without mourning far.
reaching penalties. And. on the 9th
er hand, the successful reconstruction
of this organization should teach that
the effect OF enforcing this statute Is
not to destroy. but to reconstruct; not
to demolish but to re-create In nc
cordance with the conditions which
the congress has declared shall exist
among the people Of the United
States"
common-stock Ownership.
II has been assumed that the pres
emit pro-rata and common ownership
in ali these companies by former
stockholders of the trust would insure
q continuance of the same old sings
control Of all the companies int
which the trust has by decree bso0
disintegrated. This Is an
Is based upon the assumed inefficaey
and innocuOusness of judicial injun0L
lions. The companies are enjoined
0LAoA Va
they have different managers. direc-
tors. purchasing and sales agents. II
all or any of the stockhold-
ers, reaching into the thousands. at
tempt to secur concerted action OF
the companies with q view to the con-
troll Of the market, their number Is SO
large that such an attempt could not
well be concealed and its prime o
ers and all its participants would be
at once subject to contempt proceed
ings and Imprisonment Of a summary
character. The immediate result OF
the present situation will necessarily
be activity by all the companies I'M
der different managers, and then COM
petition must follow, or there will
be activity by one company and stag
nation by another. Only a short time
will inevitably lead to a change IN
ownership of the stock. as all opror-
tunity for continued cooperation must
disappear. Those critics who speak
Of this d~isintegration In the trust as
q 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
emn Injunction of a court whose OBJ
ject IL made plain by the decree and
whose inhibitions are set forth with q
detail and comprehensiveness unex-
ampled in the history Of equity juris-
prudence.
The effect Of these WI decisions has
led to DEGREES d~issolving the combina-
ton Of manufacturers of electric lamps,
a southern wholesale g~rocers' associa-
ton, an interlocutory decree against
the powder trust with directions by
the circuit court compelling dissolu-
ton. and other combinations Of a sim
liar history are now negotiating with
the department of justice looking to a
d~isintegration by decree and reorgan-
ization In accordance with law. 1t
seems possible to bring about these re-
organizations without general business
disturbance.
Movement for Repeal Of the AntiTrus
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 q cry from many differ
ent quarters for It's 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
economy In production and q reduc-
ton Of its cost. It Ii only when the
purpose or necessary effect Of the or
~ganization and maintenance OF the
combination or the aggregation Of Inn