The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1911-12-06

u tue SIHIute. lHlS IL WHOLLY untrue.
A reasonable restraint of trade at COM
mon law is well understood and IL
clearly defined. 1t does not rest in the
discretion Of the court. 1t must be
limited to accomplish the purpose Of
lawful main contract to which In order
that 1t shall be enforceable at all 1t
must be incidental. If 1t exceed the
needs of that contract 1t is void.
The test of reasonableness was never
applied by the court at comman law
to contracts or combinations or con.
spiracies in restraint of trade whose
purpose was or whose necessary effect
would be to stine competition, to con
troll prices or establish monopolies.
The courts never assumed power to
say that such contracts or combina-
tions or conSpracieS might be lawful
If the parties to them were only mod
crate in the use Of the power thus Sc
cured and did not exact from the pub
lie too great and eXorbitant prices. 1t
is true that many theorists and others
ute have hoped that some such line
could be drawn by courts, but no court
of authority has ever attempted it
Certainly there Is nothing in the deci-
slons of the latest two cases from
which such a dangerous theory Of ju'
dicial discretion in enforcing this stat
ute can derive the slightest sanction
Force and Effectiveness of Statute q
Matter Of Growth.
We have been twenty one years max
ing this statute effective for the pur-
Knight case was discouraging and
seemed to remit to the states the whole
available power to attack and suppress
the evils of the trusts. Slowly. howev.
er. the error of that judgment was cor
rected. and only in the last three or
four years has the heavy hand Of the
law been laid upon the great Illegal
combinations that have exercised such
an absolute dominion over many of our
industries Criminal prosecutions have
been brought. and number are pend
ing. but juries have felt averse to con
yictlng for Jail sentences and judges
have been most reluctant to impose
such sentences on men of respectable
standing in society whose offense has
been regarded as merely statutory
Still, as the offense becomes better un-
derstood and the committing of 1t par
takes more Of studied and deliberate
defiance of the law we can be conf
dent that juries will convict individu-
ais and that Jail sentences will be i'm
posed
The Remedy In Equity by Dissolution.
In the Standard Oil case the supreme
and circuit courts found the combina
ton to be monopoly of the interstate
business Of refining, transporting and
marketing petroleum and its products.
effected and maintained through thir
ty-seven different corporations, the
stock of which was held by New Jer-
sey company. it in effect commanded
the dissolution of this combination, di-
rected the transfer and pro rata distri
button by the New Jersey company of
the stock held by it in the thirty y-seven
corporations to and among its stock
holders. and the corporations and indi-
vidual defendants were enjoined from
conspiring or combining to restore
such monopoly, and all agreements be
tween the subsidiary corporations tend
ing to produce or bring about further
violations of the act were enjoined.
In the tobacco case the court found
that the individual defendants, twen-
ty-nine in number, had been engaged
In q successful effort to acquire com
plete dominion over the manufacture,
sale and distribution of tobacco in this
country and abroad and that this had
been done by combinations made with
q purpose and effect to stife competi'
ton, control prices and establish
monopoly, not only in the manufacture
of tobacco, but also of tin foil and lic-
orice used in its manufacture and OF
its products of cigars, cigarettes and
snuffs. The tobacco suit presented a
far more complicated and difficult case
than the Standard Oil suit for decree
which would effectuate the will of the
court and end the violation of the stat.
ute. There was here no single hold
ing company, as in the case of the
Standard Oil trust. The main company
was the American Tobacco company.
q manufacturing. selling and holding
company The plan adopted to de-
stroy the combination and restore com.
petition involved the redivision of the
capital and plants of the whole trust
between some of the companies con
stituting the trust and new companies
organized for the purposes of the de-
cree and made parties to it and num-
bering, new and old. fourteen.
Situation After Read djustment.
The American Tobacco company
(old), readjusted capital S92,000,000;
the Liggett & Meyers Tobacco company
! new. capital $G7,OO0,OOO; the p. .'Loril
lard company new, capital $4,000.
900. and the r. J. Reynolds Tobacco
company (oldl, capital $7,525.OOO, are
chiefly engaged in the manufacture
and sale Of chewing and smoking to
bacco and cigars. The former one tin
foil company is divided into two, one
of $S25,000 capital and the other of
100000 The one snuff company Is
| divided into three companies. one with
capital Of $15,0O0,0O0. another with a
capital of SS,OOO0OO and third with
capital of SS0O0000 The licorce
companies are two. one with capital
Of S5,75S.300 and another with CAPT
tai of $2,000O00 There is also the
British-American Tobacco company, n
! Rritish corDoration. doing business