Omaha daily bee., 1911-07-07
GIVE LIFE 10 sEERMAH LAW
II is Vow an Effective weapon for
Use Against Trusts.
AREA OF UNCERTAINTY LEsSEEEl
Reasonable Construction Takes Place
Of Literal Interpretation.
SEVERAL PRINCIPLES SETTLED
No FSrn Of Corporass OrEnnfsasisn
or Lapse OF Tsss Csz saE cOurt
of Equity fran Tsrmaaafang
IIE~waI coatruos.

BATTLE CREEK. Mich. July a-Attor-
new General Wickersham spoke before the
Michigan state Bar association hsrs today
and discussed the supreme courts recent
Interpretation OF the sherman antitrust
law IN ths Standard Oh and t0baceo eases
He gave his unqualified endorsement to the
courts application Of the sO-caIlsd rule
OF reason
These whp have thoughressly yielded
to the superficial conclusion resulting from
the application by the chief JUSTICES rule
OF reason 70 the INTERPRETATION Of the Sher-
man law" he added. -can find but nftie
70 Justify the idea that the Sherman law
has been made inecfsctfve BY those two
decisions. for precisely the contrary Is es-
rablishsd by those two great Judgments.
The most cursory examination OF the de-
cree IN the tobacco case-ths most casual
consideration OF the drastic and far-reach-
ing remedy imposed-makes II perfectly Ap-
parent that the Sherman Law. perhaps for
The first time has been demonstrated TO be
an actual effective weapon TO the accom-
plishment Of the purpose for which II was
primarily enacted, namely. the destruction
Of the great combinations familiariy known
as trusts
Area of Uncertainty Narrowed.
The area OF uncertainty IN the law has
greatly narrowed and its scope and effect
have been pretty elearly defined The school
Of literal Interpretation has been repadi-
ated and the application Of rule OF reason
able construction declared There always
win be feld of uncertainty insofar as an
Investigation OF facts IL required-parricu-
larry when intent becomes necessary con-
sideration. but this much surely. may now
be said TO be beyond controversy
THAT ordinary agreement of purchase
and sale OF partnership OF OF corporate
organization do not violate the FIRST section
OF the Sherman act even though incident
ally and to limited degree they may oper-
ate TO restrain competition In interstate or
foreign commerce between the parties to
such agreeznent- But any contract com
bination or association. the dfrect obsert
and effect Of wbirn In TO ecutroI prfces-
restrict output, divide territory. refrain
from composition or exclude or prevent
others from competing in any particular
field of enterprise. imposes an undue re-
straint upon trade and commerce. and Is
in violation Of the first section Of the act
This principle applies 20 ali associations
Of competitors of character usually known
AS pools. 70 agreements with so-cslled
wholesale or retail agents. whereby the
manufacturers Of an article. even though
made according to some secret process or
formula. seeks TO control the price at which
Il may be sold by purchasers directly OF
indirectly from the manufactures. II also
applies to agreements 10 control compe-
titions between independent concerns by
means Of a common stOck-holdinE trust
whether individual or corporation holding.
Size Not Monopoly.
Z
The attainment OF a dominant position in
business acquired by the result Of
honest enterprise and normal methods OF
business development. is not a violation
of the law. But unfair methods OF trade
by destroying and excluding competitors
By means OF intercorporzte stOckholdinEs.
or by means Of agreements between actual
or potential competitors whereby the con-
Q troll OF commerce among the states or with
foreign countries in any particular line Of
+ industry is secured or threatened. expose
those who are concerned in such efforts
to the penalties prescribed in the second
section of the act. because they are en-
gagged in mOnopolizing or attempting TO
monopolize such commerce
"It also Is now settled that no form Of
corporate organization. merger or con-
solidation. no species OF transfer OF tirle.
whether By sale, conveyance or mortgage
and no lapse Of time from the GATE Of the
2 original contract conspiracy com
binAtion. can bar a federal court OF equity
from terminating an unlawful restraint or
compelling the disintegration Of a monop-
oiistic combination.
II this law" declared the attorney gen
eral in conclusion designed 20 protect the
people Of this country from the evils Of
and IA nrse=rEra f1ra Tsha-f-r -
the individual 70 trade freely shall now
be clearly understood. II its true purpose
shall be recognized and it's benefIesnt con-
sequences realized the twenty years OF
slowly developed Interpretation and widen
ing precedent win not have been without
great value