Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-02-27
RAPS COURT RIGHT
IN TRUST CASES
Senate Committee Assails SUE
preme Tribunals ''Rule of
Reason.
JUDICIAL POWER MADE
TOO GREAT, 1T IS SAID
Question Ability of a Few
Judges to Pass on I'm
reasonable Restraint

WASHINGTON. Feb. 26.--rhe ST.
preme Courts so-called modification
of the sherman antitrust law to in
woke the rule of reason" in deci
sions upon restraint of trade. is a..
tackled in vigorous terms in report
presented to the Senate by the Inter
state Commerce committee today,
which points out the dangers Of "un-
controlled and unguded judicial dis
erection" and makes emphatic de-
mand for amendments to the Sher-
man law to remove from the courts
the power to determine what are
"reasonable" restraints of trade.
The report is the result Of the conf
nittee's long investigation into the
operation of the antitrust law. The
COMMITTEES recommends new laws to
define exactly what combinations are
unlawful. So thai both the business
interests and the courts Will have
standard upon which TO proceed. IL
recommends a federal interstate cor
noration commission. with power 10
sunervise corporations, pass on ana
approve combinations and agree
mems and take over the work OF
dissolvine Illegal corporations. such
as the STANDARD oil Company or the
American Tobacco Company.
Commenting upon the decision OF
the Supreme Court in the STANDARD
Oh case. in which the rule OF rea
SON was called IN. the report, writ
ton by Senator Cummins, says;
Defining supreme Court.
THE committee has full confidence
In the integrity, intelligence and pa
triotism of the Supreme Court OF the
United States, but it is unwilling 10
repose in that court, OF any other
court. the vast and underlined powers
which it must exercise in the admin
istration of the statutes under the
rule which it has promulgated. 1t
substitutes the court in the place OF
Congress. for whenever the rule is in
volzed the court does not administer
the law, but makes the law If II
continues in force. the federal courts
will. SO far as restraint of trade is
concerned, make a common law for
the United States just as the English
courts have made a common law for
England.
THE people of this country will
not permit the courts To declare
policy for them with respect to this
subject. II We do not promptly eX-
srcise our legislative powers, the
courts will suffer immeasurable in
flrv In the loss of that respect and
confidence so essential to their use
fulness. It is inconceivable that in
a country that is governed by
written constitution and statute law
the courts can be permitted to test
each restraint of trade by the eco
nomic standard which the individual
members of the court. may happen
to approve.
"As the antitrust statute Is now
construed" adds the report, 1T IS
impossible for any association OF
men. however diligent they may be
in seeking advice and however will
ing to follow it. to know whether
what they are doing. or what they
are about to do. will be ultimately
found by the Supreme Court to De
a due or an undue restraint of
trade
More Criticism of Court.
In the further criticism Of the Su-
preme Courts rule OF reason, the
C:ummins report directs attention to
tbe fact that the governments suit
for dissolution OF the United states
Steel Corporation will ultimately
come before the Supreme Court.
In the end nine justices Of the SUI
preme Court will be asked to say
whether the restraint of trade
brought about through this combina-
+ion is a due or undue restraint,
saws the report, and the answer each
Justice makes to that question will
DEPEND upon his individual opinion
as an economist or sociologist, the
conclusion of the court being an act
of legislation passed by the judicial
branch of the government 10 ut a
particular case.
If we do not speedily prescribe in
SO far as we can, q legislative rule
NV which to measure the form of CON
tract or combination in restraint Of
trade with which we are familiar or
which we can anticipate, We cease to
be a government of law and become
a government of men; and more
over. of a very few men, and they APP
pointed by the President
No specific legislation is recon-
mended by lie committee, but it
urges Congress to devise laws as
quickly as possible which shall
Specifically prescribe certain con-
ditions upon which persons and cor
porations shall be permitted to en-
gage in commerce
These conditions should DC OF
character that will tend to preserve
reasonable competition it adds, 'or
substantially competitive conditions.
and to compel Independence in both
organization and conduct. They
should be so clear thet the business
world can understand them and &c
confidently forward, guided by them"
The committee rcconeraends that
o.itain definite forms oil c0mbiua-