The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-28
''RULEOF REASON
H0TLY ATTACKED
Demand Made for Law to Re
move Such Power From
Courts.
DISTURBING TO BUSINESS
Report Is Presented to Senate by
Interstate Commerce
Committee.

- WASHINGTON. February 27.-The SUI
preme Courts so-called modification
Of the Sherman antitrust law to In
woke 1.-The rule OF reason in decisions
upcn restraint of trade is attacked in
vigorous terms in IA report presented
10 the Senate by the Interstate Com
merce Committee to-day, which points
out the dangers OF uncontrolled and
lnSuided judicial discretion" and
makes emphatic demand for amend
ments to the Sherman law to remove
from the courts the power 10 deter
mine what are reasonable" restraints
of trade.
The report is the result of the COM
rnittee'S long Investigation into tho
operation Of the antitrust law. The
committee recommends new laws to
define exactly what combinations are
unlawful. so that both the business in
terests and the courts will have Il stan
iard upon which to proceed. It re-
commends a Federal interstate corpora
lion commission. with power to SUPER
wise corporations, pass on and approve
combinations and agreements and take
over the work of dissolving illegal cor
porations, such as the Standard Oil
Company or the American Tobacco
Company.
Supreme Court Criticized.
Commenting upon the decision of the
Supreme Court in the Standard Oil case.
in which the rule of reason was call
ed in. the report, written by Senator
Cummins, says:
The committee has full confidence
in the integrity. intelligence and pa
triotism of the Supreme Court of the
United States. but is unwilling TO re-
pose in that court or any other court
the vast and underlined powers which
nFriS ho ,trlr,, i,,i . ;<,,,
of the statutes under the rule which
II has promulgated. II substitutes tho
court in the place Of Congress- for
whenever the rule is invoked the court
does not administer the law. but makes
the law. " il continues in force the
Federal courts will, so far as restraint
Of trade is concerned. make n common
law for the United States just as the
English courts have made n common
law for England.
THE people OF this country will not
permit the courts TO declare a poIicv
for them with respect to this subject
IL we do not promptly exercise our
legislative power the courts will suf-
fer Unreasonable injury in tho loss OF
that respect and confidence so essen
tial to their usefulness. 1t is incon-
ceivable that in country that is gov
erened by a written constitution and
statute law. that the courts can be
permitted TO test each restraint OF
trade by the economic standard which
tho individual members of the court
may happen to approve.
No knowledge of Results.
AS the antitrust statute is now
construed, adds the report lit is i'm
possible for any association of men
however diliGent they may he in seek
Inf advice, and however willing to fol-
low It, TO know whether what thcy are
doing,or what they arc about TO do
n MI fol,
! preme Courts rule of reason" the
restraint of trade"
In the further criticism of the Su-
preme Courts rule of reascon." the
Cummns's report directs attention to
the fact that the governments suit for
dissolution of the United States Steel
Corporation Will ultimately come be-
fore the Supreme Court
In the end, nine justices OF the STU
preme Court will be asked TO say
whether the restraint OF trade
{ brought about through. this combina
ton is a due or undue Restraint" says
the report, land tho answer each JUS
tice makes to that question will de
pend upon his individual opinion as
an economist or socioloGIst the CON
clusion of the court being an act Of
Legislation passed by the judicial
branch OF the government to fit par
B ticular case 4
= III 'we'Ndp not speedily prescribe
\ In so far as We can. a Legislative rule
* by which to measure the form OF con
s. tract and combination in restraint OF
II trade with which we are familiar, or
& which VIC can anticipate. we cease &c
Il be government of law and become
government OF men; and moreover
of very few mon, and they appoint
cd by the President
Urges Enactment OF Laws.
No specific Legislation is recommend.
4 ed by the committee, but 1t urges Con.
gress To devise laws as quickly a.
possible. which shall specifically pre-.
scribe certain conditions, upon whicl
persons and corporations shall be per.
mitted TO engage in commerce."
These conditions should be of ;
character that Will tend TO prescrv,
reasonable competition" II adds. "o
substantially competitive condition
and 10 compel independence in boil
organization and conduct. The,
should be so clear that the business
world can understand them and <,
confidently forward, guided by them
Tho committee recommends tina
certain definite forms of combination
agreements, contracts or pools nov