The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-09-18
TRUST POLICY OF
WILSON REGIME is.
BROUGHT TO LIGHT
Union Pacific Case
Shows Plan to be
Followed.
REAL STOCK SALES
To Outsiders Will be Sought
in all Dissolutions of
Monopolies.
REAL STOCK SALES

| Washington, ID. CA comprehen-
sive trust policy, designed to enforce
effectively the Sherman law and carry
ont the provisions of the democratic
platform has been decided on by Pre-
sident Wilson and Attorney General
McReynolds.
| The two officials this week discus
sed the suits which have been insti-
tuted and those to be inaugurated.
1t is no secret that Mr. McReynolds
! is dissatisfied with the results of the
court DEGREES entered under the last
administration "dissolving" the Stan
dard Oil and the Tobacco trusts.
| These combinations and their subsi-
daries have been under investigation
to determine whether or not they
have been operating as independent
units, as prescribed by the order of
the United States supreme court. Mr..
McRcynolds holds the government
should take action to make the su-
preme court DEGREES effective.
The administration does not care
to disturb business too much at this
time, when the tariff is undergoing
revision and the currency system is
being reformed. Nevertheless, the
president is in full sympathy with his
attorney generals purpose to apply
rigidly the Sherman law
Pacific's Case Example.
1t is not generally known that the
policy adopted in the Union Pacific
Southern Pacific case is the Wilson
administrations remedy for the set
clement of the trust evil. In that case
the plan of dissolution adopted was
designed particularly with view to
avoiding the results in the Standard
Oil and Tobacco trust cases.
The criticism of the plans followed
in those cases was that the various
competitive units which had compos-
ed the combination were placed in
control of practically one set of stock
holders, who We're the same persons
who brought about the combination.
Decree Ended Two Combines.
| In breaking up the Union Pacific
Southern Pacific combination the at
torney general also succeeded in dis
continuing the control of the Balti-
more 4 Ohio railroad by the Pennsyl-
vania railroad. The plan approved by
Mr.. McReynolds was that out of the
total holdings of $126, $50, 900 of the
stock of the Southern Pacific comp
any by the Union Pacific company
$3S, 400 should be sold to the
Pennsylvania railroad in exchange
| for its entire holdings of the capital
stock of the Baltimore & Ohio rail
road namely: $42.547, 200.
| Obviously that exchange helped to
| separate the Southern Pacific comp
any from the Union Pacific company
and to break up the unlawful COM
bination between them. Furthermore,
! 1t divested the Pennsylvania railroad
company of a large amount of the
| capital stock of an active competitor
the Baltimore &, Ohio railroad com
pany-and thereby remedied another
highly Objectionable condition.
Nor was any new combination in
restraint of trade created by the ex-
change, since the Pennsylvania sys-
TEN and the Southern Pacific system
[ are noncompetitive and the Union
Pacific system and the Baltimore and
Ohio system are noncompetitive
Much the same policy is to be
pursued in connection with the de-
crees which Mr.. McReynolds hopes
to obtain as a result of the suits in
stituted against the anthracite coal
trust, the telephone combination, and
the Photographic film trust and the
bill he expects to file against the New
| York, New Haven and Hartford rail
lroad combination
| 1t is understood that in all suits
against trusts under this admins
traton the courts will be asked to re-
INo ~ IA.
| companies composing the combina-
tion TO be disposed of to persons not
stockholders, or agents, or otherwise
under the direction or control of the
parent company.