Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-02-27
RULE Of REASON
RAPED By: IjDAA|NI
SENATOR PRESENTS IMPORT or
COMMITTEE ATTACKING
SUPREME COURT. =.
UsURPs POWER OF PEOPLE
AND CONGRESS 70 MAKE LAW
Committee Demands Lssislation Which
Will Define Powers Of Courts il Pass
ing on Reasonable" Restraint Of
Trads-cummins Says ussfulnss.
Of Entire Judiciary 10 in Danger.


Of Entire Judiciary 10 in Danger.
Washington. Feb. 27.-The supreme
courts so-called modification OF the
Sherman anti-trust law to invoke the
rule of reason" in decisions upon re-
straint Of trade is attacked in vigorous
terms in report presented to the SEN
ate by the interstate commerce COM
mittee today. which points out the
dangers Of uncontrolled and unguided
judicial discretion" anl makes em-
phatic demand for amendments to the
Sherman law to remove. from the
courts the power to determine what
are reasonable" restraints Of trade.
The report is the result. OF the COM
mittee's long investigation into the op-
Grafton Of the antitrust law. Tho
committee recommends new laws to
define exactly what combinations are
unlawful 80 that business and courts
will have standard on which to pro-
ceed. It recommends federal inter-
state corporation commission with
power to supervise corporations, pas.
on and, approve corporations ana
agreements and take over the work Of
dissolving illegal corporations such as
the Standard OIL Company or the
American Tobacco Company.
cummins Points Danger;
Commenting upon the .decislos of the
supreme court in the Standard Oil
case, in which the rule Of reason
was called in the report, Senator Cum
minis, Of the committee, says:
"The committee has full confidence
in the integrity, intelligence and pa
triotism Of the supreme court of the
United States. but it is unwilling to re-
pose in that court or any other court
the vast. and underlined powers which
Il must exercise in the Administered tiop
of the statutes under the rules which II
has promulgated. It substitutes the
court in place of, congress-, for when
ever the rule IL Invoked the court does
not administer the law, but makes the
law. II 1t continues in force the fed
eral courts will, 50 far as restraint Of
trade IL concerned. make common
law for the United States just as the
English courts have made common
law for England.
Says People Are Aroused.
"The people Of this country WIN not
permit the courts to declare q policy
for them with respect for this subject.
II we do not promptly exercise our
legislative power the courts will suffer
immeasurable injury in the loss of that
respect and confidence SO essential to
their usefulness. It is inconceivable
that in a country that is governed by
written constitution and statute law
that the courts can be permitted to
test each restraint of trade BY the
economic standard which, thesandivid-
ual members Of the court may happen
to approve"
"As the antitrust stature is now
concerned" adds the report, 1T is i'm
possible for any association OF men.
however diligent they may be in seek
ing advice and however Wiling to fol-
low 1t. to know what they are doing or
what they are about to do. will he ulti- :
mately found by the supreme. court to
be a due or an undue restraint Of
trade"
Another Suit Pending.
In the further criticism OF the SUI
preme courts rule Of reason" the
Cummins report directs attention to
the fact that the governments suit fpr
dissolution Of the United States Steel
Corporation will ultimately come be-
fore the supreme court.
I'm the end nine Justices Of the SUI
preme court will be asked to say
whether the restraint Of trade brought
about thru this combiation is due or
undue restraint" saiys the report, '.antl
the answer each justice makes to thnt
question will depend on his individual
opinion as an economist or ,socielo-
gist. the conclusion Of the court being
an act Of legislation passed by the ji-
dicial branch OF the government to any
particular case.
Government Of Men, Not Law.
IF we do not prescribe SO far as I'VE
can legislative rule by which to
measure the form Of contract or com.
bination in restraint Of trade with
which we are familiar or which we can
we cease to be govern
ment Of law and become q, government
Of men: and moreover. OF very few
men and they appointed by the. pres
ident." = -
No specific legislation is recommend
ed by the committee but II urges con-
gress to devise laws as quickly as pos-
sible which shall specifically prescribe
certain conditions upon which persons
and corporations shall be permitted TO
engage in commerce.
THE conditions should be OF aschnr-
acter that will tend to preserve coui-
petition" 1t adds, "or substantially
competitive condition and to compel
independence in both organization and
conduct. They should be so clear that
the business world can understand
them and go confidently forward, gljd-
ed by them" -
The committee recommends that cer-
tain definite forms of comb Ina tious,
agreements. contracts or pools WITHIN
the twilight zone" be de6nitely men
toned In the laws as unla wful. IT de-
clares that such legislation ii neces-
sary not only to give the attorney
general the ground upon which! TO pro
ceed but also to give business intsrests
. standard by which they can-worl. sg
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