The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-11-19
Supreme Court Again Up
holds Intent of the Sher-
man Anti Trust Law
GOOD MOTIVES NO
RIGHT TO EVASION
Law Is It's Own Measure OF
Right and Wrong-Civil
Suits Need Not Wait
Criminal Action

/ WASHINGTON, Nov 1s.-The SUI
preme court OF the United States to-
day dissolved the so-calied Bath Tub
trust by affirming the deere of dis
solution, flied against the Standard
Sanitary Manufacturing company and
allied concerns, by the federal court
| of Maryland. The court also aeiiy-
cred death blow at violations RI the
! Sherman antitrust law, under the
! cloak Of the protection OF the. patent
laws, by annuiiing as invalid license
! agreements" which held the manu-
facturers OF sanitary enameied IRON
ware together in a combination.
! Justice McKenna delivered. the unan-
! imous opinion Of the court. He said
/ that rights conferred by patents were
extensive, but they did not give uni
versai licenKe against the positive pro-
hibitions OF the sherman law, any
/ more than other rights do.
| The decision Isl regarded by govern
ment attorneys as one of the most
| important since the Standard Oil de-
cree. In the so-called patent mo-
repoiy"e decision hast year ttlse Dick
Monograph casel, the court held that
the owner Of q patent might dictate
the terms under which the patented
article might be sold.
II has been feared that the court
might apply this reasoning 10 the
Sherman imw. and thus prevent the
government from attacking any of the
trusts which controlled the field by
reason al their control OF patents. The
decision today. however, Was a. sweep
ing denial Of such a view
The decree declared that the manu-
facturers' license agreements. and the
Srf,hGrSs N xs-ht l<,
trust had resorted to TO maintain uni
form prices and dictate the manner of
sale of 4ena ncaed irenware articles.
were unlawful
The agreements clearly, therefore,
said Justice Mckenna, Transcribed
W hat was necessary to protect the use
of the patent or the monopoly which
the Law conferred upon it. They
passed to the purpose and accom-
plished a restraint OF trade con-
demned by the Sherman law
He said there was nothing in the
"mimeograph case" of last year,
which contravened the views he was
expressing.
1.-THE added element of the patent
In the case at bar cannot confer i'm
munity." he added.
After discussing several antitrust
cases, he continued:
Rights conferred by patents are
indeed very definite and extensive. but
they do not give any more than other
rights to universal license against
positive prohibitions. The sherman
law is Limitation of rights which
may be pushed to evil consequences.
and, therefore. restrained.
Justice Mckenna referred to the
tobacco case decision as being the
very latest and comprehensive inter-
probation of the law He quoted that
opinion as saying that the law was
designed to prevent evasions of Its
policies ''by resort to any disguise or
subterfuge of FORM
Nor can they be evaded by good
motives" added Justice Mckenna.
The law is it's own measure OF right
and wrong. Of what it permits or for
bids, and the Judgment of courts an
not be set up against it in q sup
posed accommodation of its policy
with the good intention OF parties.
and II may be Of some good results
Justice McKenna touched upon the
complaint OF the defendants that they
had been prevented from offering GER
tain testimony by the criminal pro-
ceedings against officials of the COM
panies before the Michigan courts.
The Sherman act provides for a
criminal proceeding to punish viola
tons and suits OF equity to restrain
such stains. ami the suits may be
brought simultaneously or successive
ly.
1.-THE order OF their bringing must
depend upon the government: the de-
pendence of their trials cannot be fix
ed by hard and fast rule. or made
imperatively to turn upon the char
acter Of the suit Circumstances may
determine. and are for the considera-
ton OF the court. An imperative rule
that 4 he seissl suit must. await the trial
of the criminal action might result in
injustice or take from the statute a
great deal OF power"