El Paso herald. (El Paso, Tex.) 1901-1931, 1911-07-07
SAYS
COURT OPINION
GOOD one
Attorney General Defends
"Rule of Reason" Opin-
ion In Trust Cases.

Battle Creek, Mich, July 7-Atfor-
ney general Wickersnam spoke before
the Michigan State Bar association
here today and discussed the supreme
courts recent Interpretation of the
Sherman antitrust law in the Stand
his unqualified endorsement to the
courts application Of the socaI1ed '.ruie
OF reason
Those who have thought1essly
yielded TO the superficial conclusion
resulting from the application by the
chief justice Of the rule Of reason TO
the Interpretation OF the Sherman law"
he said, can find but little to justify
the idea that the Sherman law has
been made ineffective by these two
decisions. for precisely the contrary
Is established by these two great judg-
ments.
1.-THE cursory examination Of the de-
cree In the tobacco case. the most cas-
ual consideration Of the drastic and
farreachfng remedy imposed, makes 1t
perfectly apparent that the Sherman
law. perhaps for the first time has
been demonstrated TO be an actual, ef-
1ectiTe weapon to accomplishment Of
the purpose for which II was primarily
enacted, namely the destruction Of the
great combinations, Familiarity known
as trusts.
The Area of Uncertainty.
1.-THE area Of uncertainty in the law
has been greatly narrowed and its
scope and effect have been pretty clear
~ defined. The school Of literal inter
probation has been repudiated and the
application Of a rule Of reasonable
construction declared. There always
will be a field Of uncertainty insofar
as an Investigation Of facts is required,
particularly when intent becomes a
Necessary consideration. but this much
surely, may now be said to be beyond
controversy.
But any contract, combination or
association the direct object and effect
Of which is to control prices. restrict
output divide territory. refrain from
competition or exclude or prevent 9TH
ers from competing in any particular
field Of enterprise, imposes an undue
restraint upon trade and commerce and
is in violation Of the first section Of
the act
This principle applies TO all asso-
Citations Of competitors Of the character
usually known as pools; to agreement
with socalled wholesale or retail agents
whereby the manufacturer Of an arti-
Gle, even though made according to
some secret process or formula, seeks
to control the price at which it may
be sold by purchasers directly or in
directly from the manufacturer. It also
applies to attempts Co control competi-
ton between Independent concerns by
means OF common soockholding trust,
whether individual or corporation
holder.
Size Not a Monopoly.
''Size alone does not constitute mo-
nopoly The attainment Of dominant
position in g business acquired by the
result Of honest enterprise and normal
methods Of business development, is not
a violation Of the law. But the unfair
methods OF trade, by destroying and
excluding competitors by means Of
intercorporate stockholdingS, or by
means Of agreements between actual or
potential competitors. whereby the
control Of commerce among the states
or with foreign countries in any par
ticular line Of industry and secured or
threatened, expose those who are con-
cerned in such efforts to the penalties
prescribed IN the second section OF the
act, because they are engaged in mo-
nopolizing or attempting to monopo-
lize such commerce.
at also IS now settled that no form
Of corporate organization, merger or
express OF title, whether
by sale, conveyance or mortgage, and
no lapse OF time from the date OF
original contract. conspiracy or combi-
nation, can bar a federal court Of equi-
" from terminating an unlawful re-
straint, or compelling the disintegra-
ton of monopolistic combination
'Tf this law" declared the attorney
general, in conclusion. els desig ned to
protect the people OF this country from
the evils OF monopoly and to preserve
the liberty Of the individual to trade
freely, I shall now be clearly under;
stood; If its true purpose shall be !
recognized and It's beneffcent conse-
quences realized, the 20 years Of slow ,
development Interpretation and wild |
entng precedent viii not have been !
without great value"