The Washington times., 1912-07-21
ARE TRUST PROSECUTIONS FRAUDs7

Congressman Pepper has introduced q bill to
require the Government to appeal to the Supreme
Court the decree dissolvng the Powder trust. Mr.
Pepper makes grave charges, which need invest-
cation, and his bill ought to pass II is doubtful
however, IL it goes far enough. Investigation Of
the motives back Of strange procedure Of the Gov
ernment in various trust cases seems to be needed
In the Tobacco and Standard Oil cases, the trusts
having been defeated and ordered dissolved, their
lawyers permitted to draw the DEGREES, which
we're accepted without change or appeal The result
has been an immense INCREASE in the values Of
their shares, aggregatng several hundreds Of
millions OF dollars
This has been accompanied by INCREASES in
the prices Of products controlled by the trusts.
The public pays the freight. In these two cases
the net result Of SUCCESSFUL prosecutions OF
trusts has been to give the trusts immunity to further
prosecution, to mulct the consuming public, and to
make the monopolies more powerful as against
Independents than ever before.
Turn now to Mr.. Peppers charges as to the
Powder trust case Before the Government attacked
that combination, independents had sued it for dam
ages to their business by Of its vicious CON-
petitive methods.
The Government stepped in and sued it as con-
spracy in restraint of trade; the suit and
more, as in the tobacco case, the Federal court
allowed the trusts own lawyers to write the decree,
which has been accepted as they prepared it.
Mr.. Pepper declares this decree will not only
have the evil effects that have been noted in ths oil
and tobacco cases. but more that it will deprive the
independents of their right of action.
The Senate has passed, and the House probably
will pass bill by Senator Cummins to require that
the tobacco decree be appealed to the Supreme
Court. Mr. Pepper proposes to do as much in the
powder case.
Is it to be assumed that Congress would take
such drastic and unprecedented action, by way OF
interference with the business of the Governments s
legal department, if there not excellent rea-
sons? We think not. Senator Cummins has
charged, and Mr.. Pepper charges, that the anti
trust law has been perverted from its original pur-
pose Of protecting the public into most effective
protection for the trusts themselves
1t would be difficult to believe that such thing
could be possible, If there not startling record
of such proceedings on the part Of the present
Administration.
1t promised to revise the tariff downward; then
proceeded to revise it upward.
| 1t prepared railroad regulation measure, the
bill Of l90 and demanded that it pass precisely
written. Under examination, this was found to be
skillfully contrived device to AUTHORIZE COM
binations of the most undesirable kind, to LEGAL.
IZE overcapitalization, and in general, to accom-
|
The President in public message to Congress
recommended that the Government build its own
ships and operate them in the coastwse trade by
way of the Panama canal, a guarantee against
excessive freight charges by privately or railroad
owned vessels.
Then, having got a vast fund Of commentator
for this vigorous proposal he sent his Secretary OF
War before the House Committee on Interstate
Commerce, and privately withdrew that recommen
daton, with the explanation that after further exam
nation he had decided that the Government ough,
not to build and operate these ships!
President Taft pledged himself to the Roosevelt
policies of conservation, and then proceeded through
the Balnger administration at the Interior Depart
ment to betray those policies.
He pretended purpose to save Alaska in the
public interest," and then backed Ballinger in his
determined effort to give everything from its Goa
deposit to its harbors to the Guggenheim syndicate
Here we have few cases of the facing-both
ways policy of this Administration. 1t betrayed
conservation, while pretending to promote it; i
splendidy served the Oil and Tobacco trusts while
going through the motions Of vigorous prosecution
it tried to destroy the railroad regulation laws;
betrayed the tariff program to which it was pledged
Now it is charged with serving the Powder trus
as it has formerly served the oil and tobacco com
bnations.
Is it not fair to assume that Congressman Peppe
has put his finger on another sore that needs
legislative poultice?