New-York tribune., 1911-12-21
LAWS POWER ABSOLUTE
.;.c,,it Court 0verruIeS 0emur-
rors of steamship Trust"
xsNT or EQUITY DEFENCE
,-lres Hold Foreign Influences
40 Not Free to Restrain Com
-,erce-Can Be No Appeal.

~.ez,rs Of foreign countries are not
:, restrain the foreign commerce oi
- ,,,,trv by entering into combinations
ak nor by employing foreign vessels
""V =. their purpose. Such combinations
=, ~. tested by the same standard as
,.~ combinations entered into here by
.,,ens Of this country
- v~as the opinion Of Judge Moves rem
- Yesterday and concurred ia by
- Iacomtc Coke and Ward. OF the
-, states Circuit Court, IN decision
'-,,l,rc the demurrers of the various
N.s5ip companies composing the Allan
-.-,,-ra-sn-e. known as the steamship
IN the action Of the government for
=. dissolution. The defendants con,ended
-. .hs complaint against them should be
1-...s.s5 for want Of equity, as the pow
s Congress extended only within the
3 -, rf the United States and the
l,.io- Of foreign commerce could DE
..-~,,rsred only with the cooperation
= .rs legislative bodies Of the other coUn-
- affected.
r~5r4 Moves said it might be accepted
-...,-- discussion that transportation OF
--.s~0--e between this country and Eu-
= formed a part Of the commerce Of the
,..ta4 states with foreign nations. and
!, --ss clearly established that Congress
81 the power 20 prohibit all contracts
.----i-a-.5ns and conspi-acies in restraint
~ fs,cb commerce. He said in part:
..-ss agreement affects foreign commerce
because It's operation must necessarily al-
re-- q pa~t thereof viz, the business OF
carving steerase passengers. from tNs
,.,,,-er channels Of competition into a&ea
,r,r-ars assigned 10 the parties The cii-
,s-s-t lines obtain not what would come
- -rsm s-om their separate efforts ouI
--sscr.bsa and certain percentages OF the
uaaic. -,
.sr-e. agreement decidedly and material
A. s~acts foreign commerce, and is partly
territorial. because IL is carried out
N Fart iu the United States.
The prohibitions Of the sherman law
Judge Noyes further said, applied broadly
20 contracts In restraint Of commerce win
foreisn nations. and If the contracts COM
rfaired OF by the government directly and
materially restrain such commerce they
come within the statute. He added.
NE see nothing TO warrant the conten-
,.or that the act should be narrowly IN
-s-2reted as prohibiting only contracts
which are TO b, performed wholly within
The territorial jurisdiction Of the Unlted
States uor-.f .t were for US TO consider
any reason for concluding that broader
,,-..-sct.ou would lead TO international
complication.
..s -ae contract materially Affects ihe
f8-e.s8 commerce Of this country by oeing
nm. In effect here. Il is immateria! where
n Vas entered into or BY what vessels
n WAS 20 be- or has been performed
The question whether the contracts and
agreements described IN the petition Of the
eoys~-meut gave the steamship companies
virtual monopoly 5i the trade. thus ma
,.us.Iy restraining foreign commerce, must
h. decided by the fnal inquiry, Judge
Moves said. hut the demurrer had TO De
sas,ded Oh the allegations made by the
,,yernrnert. He added that, whether or
-s- the statute was directed against al
.,binations ir restraint OF competition. II
KS certain that % embraced those IN
,t,ch the purpose and effect were to
aarre arbitrary and excessive transporta-
ton rates.
The defendants were ordered 70 tile an
rvsrs before February rule day. There Is
no aDpeal from the decision Overrullng the
5s-,urre-. and the case will have to be
tried now in the lower court before the de-
fsndants can appeal 10 the Supreme Court