The Washington times., 1913-10-03
NEW ANTITRUST
POLICY ADOPTED
McReynoIds Aims to Break Up
Combines and Keep Them
Dissolved.

A new antitrust policy has been
adopted by the Government.
First appearing in the Union Pacific
Southern Pacific dissolution suit, the
plan did not attract much attention.
But when later suits were filed and in
each case the courts were asked to en-
ter decree similar to that forced on
the Union Pacific, it was seen that here
was not a plan. but a policy.
What the new policy placed in force
by Attorney General McReynolds seeks
ii do is TO dissolve trusts, and then
keep them dissolved.
Demands Separation.
There is no acquiring of control in
the subsidiary companies OF dissolved
trusts by the interests which owned
the offending parent company. Instead
an affidavit is required of purchasers
of stocks in dissolved companies GER
tifying that they are not stockhoio-
ers. nor the agent of stockholders OF
the trust.
In the telephone and film trust suits.
ms we'll as in Union Pacific, this de-
cree WAS enforced. The courts also
will be asked to- prepare the same de-
cree in the jewelers. sui. the harvester
snif. and the Sbuthern Pacific Central
I,acific suit, now pending. And In the
Eases under investigation. If they pro,
sss far eneushf the plan OF sca'tereu
tsfs-nership will be e feature.
when the Standard and Tobacco
,,,sts were dissolved, they were just
eniit into number of little companies
snrh stockholder retaining his pro-
pprtionate share Of the properues. Inc
sspartment of Justice has not been
own that this plan tried By former
ministration has succeeded, and now
fise Administration is trying out .
"A IN Of its own
Disagreed Over Plan.
Attorney General McReynolds, while
Acting as special counsel for the Gov
er,rnent Tn the trial of the Tobacco
trust suit. disagreed with George w.
N-;ckersham, then Attorney General, as
70 the p!an of dissolution. Mr.. Wick
ersham won his point and friends OF
Mr. McReynolds point out that the
failure of the dissolution plan finally
,,.n.rked outofer both the Standard OIL
ard Tobacco trust cases vindicates his
judgement.
And now, while given the opportunity
40 carry out his ideas as the head OF
the Department of Justice, Attorney
General McReynolds has put his plan OF
trTst dissolution into enect- HIS oppo-
sition to the oil and tobacco dissoiu-
tion degrees was based on The fact thar.
while the courts dissolved the trusts.
tfey made no provision for future con-
al hy taking the stock out OF the nands
OF the stockholders ia the hrst instance
- remedy this. Mr.. McReynoids, In the
j. solution cases he has pushed IN
art has obtained decrees preventing
the passing of control to the same
sfsoue which was in control before the
dissolution.
n All the cases ne has brought into
tsrat the stock of the constitueDt comps-
Is composing the trust or conbina-
Tscn be disposed Of to persons not STOCK
ssE1e-s, nor agents OF stockhotoers, not
q 1erwise under the control OF the par
ent companies. Heretofore, the DEGREES
of dissolution permitted the various COM
petitive units of . trast found guilty oi
violating the law to remain almost en-
ti-ely In the control OF the same group
OF stockholders. changing merely the
form and not the substance of the con.
troll. The same est OF men remained II
control
Example of New Policy.
The Union Pacifc-southern Pacific
dissolution suit is pointed to as the best
example of this new trust policy. 1n
this case the courts held that the Union
Pacific acting through the Oregon
Short Line railroad, had unla ayfully ac'
|, ,auired control. of the Southeru Pacific, a
competitive Tine. At the tiiaesthe decree
!. was entered the Union Pacific heic
S126,6Sc 600 in the stock of the Southern
Pacific The dissolution plan insisted or
by the Department of Justice permitted
the sale of SSs,292, 400 of Southern Pa.
cific stock held by the Union Pacific te
the Pennsylvania railroad. and permit
ted the Union Pacific to buy from the