Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-12-05
TAFT N Defense
Of ANTITRUST LAW

u AMI |RUS| Ian
(Continued from Page Four.)
lorgo units into which the capital and
,plant have been divided. we shall have
accomplished tho useful purpose Of
the statute.
csnnseation Not the Purpose Of the
Statute.
n II Not the purpose Of the statute
10 confiscate tho property and capital
az the offending trusts. Methods Of
rnnishment by fne or imprisonment
AZ tho individual offenders, by fine Of
the CORPORATION, or by forfeiture Of its
Goods in transportation. are provided.
hut the proceeding IN equity is spe-
che 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.
k,rx az American law has q decree
NOR. effective for such purpose
h.en entered by q court than that
sr.inst the Tobacco trust AS Circuit
1udee Noyes said In his judgment ap-
proving the decree:
"rhe extent to which 1t has been
..caasary to tear apart this combina-
sior and force It into new forms with
~. attsndant burdens ought to dem
ir.tr.te that the federal antitrust
tatute 10 q drastic statute which &C.
complishes effective results; which so
lons a. it stands on the statute books
,nust be obeyed. and which cannot
=. disobeyed without incurring far.
reaching penalties. And. on the 9TH
or hand. tho successful reconstruction
,of this organisation should teach that
hha effect Of enforcing this statute is
not to destroy. but to reconstruct; not
Il demolish but to re-create in &C.
cordance With the conditions which
the congress- has declared shall EXIT
among he people OF the UnIesd
States"
common.etoci< ownership.
Il has been assumed that the pres.
ont pro.ra&a and common ownership
In all these companies By former
stockholders Of the trust would insure
"a continuance Of the same old single
control of all the companies into
which the trust has by decree been
disintesrated. This is erroneous and
ds based upon the assumed ine6acacy
and innocuousness Of judicial injunc-
lions. The companies are enjoinod
from cooperation or combination;
they have different managers, direc.
tors. purchasing and sales agents. II
all or any Of the numerous stockhold-
ers.. reaching into tho thousands. At
tempt to secure concerted action OF
the companies with view to the con-
troll Of the market. their number Is SO
large that such an attempt could not
we'll be concealed and its prime NOV
ers and all its participants would be
at once subject to contempt proceed
lngs and imprisonment Of summary
character. The immediate result OF
the present situation will necessarily
be activity by all the companies un'
der different managers, and then COM
petition must follow. or there Will
be activity by one company and stag
nation by another. Only short time
will inevitably lead to change IN
ownership OF the stock, as all oppori
tunity for continued cooperation must
disappear. Those critics who speak
Of this disintegratjon in the trust as
Z mere change Of garments have not
given consideration to the inevitable
working Of the decree and understand
little tho personal danger OF attempt
ing TO evade or set at naught the SOL
emn Injunction Of q court whose Cd
ject Is made plain by the decree ana
whose inhibitions are set forth with .
detail and comprehensiveness unex-
empled in the history Of equity juris'
prudence.
The effect Of these two decisions has
led to DEGREES dissolving the combinar
ton Of manufacturers of electric lamps.
a southern Wholesale grocers' associa,
tion, an interlocutory decree against
tho powder trust with directions by
tho circuit court compelling dissolu'
ton. and other combinations Of SIM
Iilar history are now negotiating with
1.-The department Of Justice looking to
idisintegration by decree and reorgan'
lization In accordance with law. 1t
jseems possible to bring about these re-
organizations without general business
disturbance.
Movement for Repeal Of the Antitrust
Law.
But now that the antitrust act Is
Iseen to be effective for the accomplish
Iment Of the purpose Of Its enactment,
I'VE are met by a cry from many differ
lent quarters for its repeal It is said
ito be obstructive Of business progress,
ito be an attempt to restore. old-fash-
Toned methods Of destructive competi-
Ition between small units. and to make
impossible those useful combinations
iof 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
mess Of plant organised to secure
economy in production and a reduc-
tion Of its cost 1t IL only when the
purpose or necessary effect Of the Or
~ani-ation and maintenance of the