New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-23
Stanley Committee Agrees on
Three Radical Measures to
Put End to Restraint
OF Trade.
SHIFT BURDEN OF PROOF
Provisions Meant to Wipe Out
1nterlocking System of Di-
rectorates and to Give
Private Citizens the
Right to Act.

terstate commerce act were agreed on
late to-day by the majority members
or the Stanley steel investigating conf
mittee. Every form Of restraint Of
trade is covered by the legislation rec
commended, and the three measures are
OF such radical character that Congress
and the public will have difficulty il
| determining the order OF their impor-
tance. These bills, In brief, provide:
That any corporation controlling 80
per cent Of the output Of any commod- =
| ity handled in interstate commerce is
guilty Of restraint Of trade.
| mat no person who is engaged as a
member Of a partnership, or as an off e.
cor, director or employe OF a corpora.
| ton which manufactures or sells
structural steel, railroad rails, cars or
locomotives, or who is engaged in tho
mining or selling OF coal shall act as
an offeer, director or empIoye of any
railroad company engaged in interstate
traffic. This would end the interIock-
ing system Of directorates.
That IN every proceeding brought
| against corporation for alleged re-
stralnt Of trade tho burden Of proof
shall be on the corporation and not on
the government or any other injured
party. As forecast in The Tribune,
Martin littleton, a member of tho COM
nittee. will not approve this section Of
the bill to amend tho Sherman law.
That the courts shall have authority
to fix tho selling price Of any article,
If il is shown in preliminary hearing
that the corporation supplying the mar.
ket with that article, whether raw or
manufactured. has monopoly. and
that the public is denied the opportu-
nifty Of unhampered purchase. Il 10
provided that the court shall issue such
an order "by injunction or otherwise.
as VIII secure to purchasers or users OF
such article full opportunity to secure
and use the esn,e upon payment Of a
| reasonable compensation. to be fixed
BY tho court in such order, until some
| ticls may be found"
That in the amended Sherman law
tho words Restraint of trade" mean
any restraint in any respect TO any es-
tent OF trade or commerce among tho
several states or with foreign nations.
Intervention Provided For.
That injured individuals and the SOW.
ersisn states shall have tho power Of
Intervention in any suit brought against
q corporation charged with restraint Of
trade. The Democratic bill proposes
! that, in this respect, tho Sherman law
shall be amended 70 read as follows, by
the addition Of two sections-10 and II:
Any person who shall he injured in hi,
business or property. or shall Re threat
| ened with such injury, by any person or
corporation by reason Of anything for
hidden or declared TO oe unlawful by this
hrin IN In ffs
cult court Of the United States in the
district in which the defendant resides or
| Is FOUND, 70 prevent and restrain viola
tions Of this act and for other appro-
| pirate relief
! Whenever suit has been instituted under
| Section OF this act 0he Sherman actI.
any. person who shall be injured In MS
business or property, or threatened with
| suit, or any Of them, by reason OF any
thing forbidden or declared 70 be unlsw
| full in this act, any state OF the United
| States may at any time intervene In said
suit 10 protect his interests. or. IL the in
| tervenor he a state. the interest of the
| citizens of such state. and any person
| injured, or any state. may, after inal de-
| cree In said suit, petition said court for
protection or redress IN case OF any v'o-
| lation Of said decree. ana the court snail
| have power to take such action as may
| be appropriate In the premises.
| Whenever in any suit II shall appear
| that any combination was entered into,
| existed or exists. which Is In restraint pf
| trade. the burden OF proof to establish Inc
reasonablencss of such restraint shall oe
upon the party who contends that such
| restraint Is reasonable.
| The bill to amend the Sherman law
contains ten sections. and attached Is
memorandum which sets forth in de-
tail how the proposed amendments
would safeguard the interests Of the
states and the independents" in cases
similar to those brought against the
Standard OIL Company and the Ameri-
can Tobacco Company. Clause Got
the tenth amendment proposed provides
that the court, after holding defend
ant corporation guilty Of restraint Of
trade Shall have jurisdiction 10 make
such restraining orders or prohibitions
as may be necessary to recreate COR
6itions in harmony with the law inc!rd-
ing prohibitions of any acts, conduct,
methods or devices which are enumer-
ated herein as indicating unreasonable
restraint
Widening Courts Power.
The memorandum referring 10 this
clause says: This clause is designed
expressly to grant or confirm TO the
court the power which the circuit
Judges in the tobacco case failed 20
recognize or declined to exercise
namely, the power to prohibit In the
future on behalf of the defendants acts
which would tend to prevent the res
toration or maintenance OF competi-
tive conditions"
In reference TO the comprehensive
bill TO strengthen the Sherman law
Chairman Stanley repudiated tonight
alleged extracts from the bill printed
in a New York morning paper. A
comparison of the published bill and a
measure introduced by Representative
Lenroot In December last disclosed that
the context was identical The bill
agreed to by the majority Of the COM
mittee Is quite dissimilar. and Chair
man Stanley said. with some amuse-
ment:
| IL seems In the desire to forecast "nat
| the committees recommendation iot