Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-01
MENACE TO INSTITUTIONS
HE CALLS SUPREME ISSUE
Believes Business Depression Is
Threatened by Democratic
Plans toReduce the I ariff.

its extent and quite as much in evidence
in other countries of advanced civiliza-
ton and progressive tendencies as In our
own. Bitter complaints Of the burden OF
increased prices and cost OF living have
been made not only in this country. but
even in countries of Asia and Africa. Dis
order and even riots have occurred in
several European cities because of the
unprecedented cost of food products In
our own country changes have been
manifested without regard to lower or
higher duties In the tariff act OF 1903.
Indeed, the most notable increase in
prices has been in the case Of products
where no duties are imposed, and In some
instances in which they were diminished
or removed by the recent tariff act.
1T is difficult to understand how any
legislation or promise in a political plat
form can remedy this universal condi-
ton. 1 have recommended the creation
Of a commission to study this sub ject
and to report upon all possible methods
people complain. but great economic
tendencies, notable among which are the
practically universal movement from the
country to the city and the increased sup
ply OF gold, have been the most potent
factors in causing high prices. These
facts every careful student Of the situa.
ton must admit.
There is one respect in which high
tariff rates may make for exorbitant
prices. Ii the rate is higher than the diff
ference between the cost Of production
here and abroad. then 1T tempts the man.
ufacturers OF this country to secure mon
opoly of the industry and to increase its
price as far az the excessive tariff will
permit. The danger may be avoided In
two ways: First, by carefully adjusting
the tarin on articles needing protection so
that the manufacturer secures only
enough protection to pay the scale OF
high wages which obtains and ought to
obtain in this country and secure q rea-
sonable profit from the business. This
may be done by the continuance OF the
tariff boards investigation into the facts.
which will enable Congress and the people
to know what the tariff as to each sched-
ule ought to be. The American public
may rest assured that should the republi-
can party be restored to power I'm all leg
islative branches. all the schedules in the
present tariff of which complaint is made
will be subjected to investigation and re-
port by a competent and impartial tarin
board, and to the reduction Or change
which may be necessary to square the
rates with the facts.
The other method of avoiding danger
of excessive prices from excessive duties
is, enforce the antitrust law against
the excessive tariff rates. This brings
me to the discussion OF the Sherman act
The antitrust law was passed TO pro-
vide against the organization and MAIN
tenance of combinations for the manu-
facture and sale of commodities which.
through restraint OF trade. either by con-
tract and agreement or by various meth
DDS of unfair competition, should sup
press competition, establish monopoly and
control prices. The measure has been ON
ha CT f,1fa sir
times under construction by the courts,
but not until the litigation against the
Standard Oil Company and against the
American Tobacco Company reached the
an authoritative construction which is
workable and ineligible.
New Constructive Legislation.
1T would aid the business public il spe-
cific acts of unfair trade which char
acterize the establishment of unlawful
monopolies should be denounced as mis-
demeanors for the purpose. first. of max
ing palmer to the public what must be
avoided. and. second, for the purpose of
Furnishing such acts by summary proce-
dure without the necessity for the for
mdable array of witnesses and the
lengthy trials essential to establish a
general conspiracy under the present act
But there is great need for other con-
structive legislation of helpful kind.
Combination of capital in great enter
prises should be encouraged, If within
the law, for every one must recognize
that progress in modern business is by
effective combination of the means of
production to the point of greatest econ
Omy. 1t should be. our purpose there
fore. to put large interstate business en-
terprises acting within the law on a
basis of security by offering them a fed
eral corporation law under which they
may voluntarily incorporate. Such an
act is not an easy one to draw in de-
tail. but its general outlines are clearly
defined by the two objects of such a
law. One is to secure for the public,
competent government agency,
such close supervision and regulation
Of the business transactions of the cor
poratiOn as to preclude a violation of
the antitrust and other laws 10 which
the business of the corporation must
square. and the other is TO furnish to
business. thus Incorporated and lawfully
conducted. the protection and security
which it must enjoy under such a federal
charter. With the faculties conferred by
such a charter, corporations could do
business in all the states without COM
plying with conflicting exactions OF state
and could be sure Of uniform
e.. uniform with that imposed
by the state on state corpora tons in the
same business.
Drastic Amendments Opposed.
Il am not in sympathy with the pur-
pose to make the antitrust law more
drastic by such provision as is proposed
by the democratic majority of the in
vestigating committee of the House, for
imposing a rule as to burden of proof
upon defendants under antitrust prosecu-
tons different from that which defend
ants in other prosecutions enjoy. This
cannot be suggested by any dificulty
found in proving to the courts the illegal
ity of such combinations when the illegal
ity exists. / challenge the production OF
q single record in any case in which an
combination has escaped a
able rule as to the burden of proof. 1t Is
true that many defendants in criminal
cases have escaped by a failure of the
jury to convict but that arises from the
reluctance and refusal of jurors to find
yerdicts upon which men are likely to be
sent to the penitentiary for pursuing a
course in business competition which the
ordinary man did not regard as immoral
or criminal before the passage of the act |
4 Consistent Course.
Il think / may affirm without contradic- |
ZION that the prosecution of all persons |
reported to the Department Of Justice to !
have violated the antitrust law has been \
carried on in this administration without |
fear or favor, and that every one who |
has violated 1t. no matter how prominent |
or how great his influence. has been |
brought before the bar of the court |!
either in civil or criminal suit to answer i