The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-12-06

alties. And. on the other hand. the
successful reconstruction Of this or
ganization should teach that the effect
Of enforcing this statute is not to de-
stroy. but to reconstruct: not to de-
molish, but to recreate in accordance
with the conditions which the congress
has declared shall exist among the
people of the United States
Common Stock Ownership.
1t has been assumed that the pres
ent pro rata and common ownership in
ali these companies by former stock
holders of the trust would insure a
continuance of the same old single con-
troll of all the companies into which
the trust has by decree been disinte-
grated This is erroneous and is based
upon the assumed ineficacy and innoc
uousness of judicial injunctions, The
companies are enjoined from co-opera-
ton or combination: they have differ
ent managers. directors, purchasing
and sales agents. If all or many Of
the numerous stockholders. reaching
into the thousands. attempt to secure
concerted action Of the companies with
a view to the control Of the market
their number is so large that such an
attempt could not well be concealed.
and its prime movers and all its partie-
ipants would be at once subject to con-
tempt proceedings and imprisonment
of summary character The immedi-
ate result of the present situation will
necessarily be activity by all the COM
panies under different mana gers, and
then competition must follow or there
will be activity by one company and
stagnation by another. Only a short
time will inevitably lead to a change
in ownership of the stock, as all op-
portunity for continued cooperation
must disappear. Those critics who
speak Of this disintegration In the trust
as 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 SOL
emn injunction of court whose object
| is made plain by the decree and whose
inhibitions are set forth with detail
and comprehensiveness unexampled in
the history Of equity Jurisprudence.
Voluntary Reorsanizations of Other
Trusts at Hand.
The effect of these two decisions has
led to DEGREES dissolving the combina-
ton Of manufacturers Of electric
lamps, southern wholesale grocers'
association, an interlocutory decree
against the powder trust, with direc-
tons by the circuit court compelling
dissolution, and other combinations Of
similar history are now negotiating
with the department of justice looking
to disintegration by decree and re-
organization in accordance with law
1t seems possible to bring about these
reorganizations without general bust
ness disturbance.
Movement For Repeal of the Anti
trust 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 cry from many differ
ent quarters for its repeal 1t is said
to be obstructive of business progress,
| u DO al " EGSJOEe Oiu IdSu~
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 b.
ness of plant organized to secure econ
omy in production and a reduction Of
its cost 1t is only when the purpose
or necessary effect Of the organization
and maintenance Of the combination
or the aggregation of immense size are
the sitting Of competition. actual and
potential. and the enhancing 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 necessari-
, ~ eliminates competition between the
units thus combined. but this elimina-
ton is in contraventior OF the statute
only when the combination is made for
purpose Of ending this particular COM
petition IN order to secure control of