The Calumet news., 1911-12-05
TAFT'S MESSAGE
ON THE TRUSTS
Continued from page TWO

stands on the statute books must be
obeyed and which cannot be disobey-
ed without incurring farreachlng pen
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 10 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.
| IL has been assumed that the pres
ent pro rata and common ownership in
all these companies by former stock
holders OF the trust would insure q
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 inefficacy and innoc-
uousness Of judicial injunctions. The
companies are enjoined from co-opera.
tion or combinations they have differ
ent managers. directors. purchasing
'AN ooANo hHthNo IL dil IlunY Vi
the numerous stockholders. reaching
into the thousands. attempt to secure
concerted action Of the companies with
view TO the control of the market
their number Is so large that such an
attempt could not we'll be concealed
and Its prime movers and all its partic-
ipants would be at once subject to con-
famnf npnrnQ6inOg ~ tf,ofa kex,y -
of summary character. The immedi-
ate result Of the present situation will
necessarily be activity by all the COM
panies under different managers, and
then competition must follow or there
will be activity by one company and
stagnation by another. Only n 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 dlslntegration 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 a detail
and comprehensiveness unexampled in
the history OF equity Jurisprudence.
Voluntary Reoreanizations of Other
Trusts at Hand.
The effect of these two decisions has
led to DEGREES dlssolving the combina.
ton of manufacturers of electric
lamps, southern wholesale grocers'
association. an interlocutory decree
against the powder trust. with direc-
tions by the circuit court compelling
dissolution, and other combinations OF
a similar history are now negotiating
with the department of justice looking
to a disintegration by decree and re-
organization in accordance with law.
1t seems possible to bring about these
reorganizations without general busl-
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 m:.y differ
ent quarters for its repeal ~ is said
to be obstructive OF business progress.
to be an attempt to restore old fash
loned methods of destructive competi-
tion 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 I'm the statute which condemns
combinations of capital or mere big
ness of plant organized to secure econ
omy in production and n 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 n monopoly that the
statute is violated. Mere size is no
sin against the law. The merging of
two or more business plants necessari-
ly eliminates competition between the
units thus combined, but this elimina-
ton Is in contravention of the statute
only when tire combination is made for
purpose of ending this particular COM
petition in order to secure control Of
and enhance prices and create mo
nopoly.
Lack of Definiteness In the Statute.
The complaint is made OF the stat
ute that It Is not sufficiently definite
In its description of that which is for
hidden to enable business men to avoid
Its violation. The suggestion is that
we may have combination Of two
corporations which may run on for
years and that subsequently the at
torney general may conclude that IL
was violation of the statute and that !
which was supposed by the combiners |
to be innocent then turns out TO be n |
I'm violation of the statute. |
The answer to this hypothetical case
Is that when men attempt to amass |
such stupendous capital us will enable
them to suppress competition. control |
prices and establish a monopoly they |
know the purpose of their acts. Men
do not do such thing without having |
N cIoorlv I'm mind IL vhat thev do is /