The Birmingham age-herald., 1913-02-28
MODIFICATION OF
ANTITRUST LAW
HOTLY ATTACKED
Interstate Commerce Com
mission Makes Report
to the Senate
RECOMMENDS NEW
AND DEFINITE LAWS
Urges Commission With Power to
Supervise Corporations, Pass on
and Approve Combinations
and Agreements

Washington, February 2-The supreme
man antitrust law to invoke the rule of
reason in decisions upon restraint of
trade is attacked in vigorous terms in a
report presented to the Senate by the in
terstate commerce commission today,
which points out the danger of uncon-
troled and unguided judicial discretion,
and makes emphatic demand for amend
ments to the Sherman law to romove from
the courts the power to determine what
are reasonable restraints of trade"
The report is the result of the commit
tees long Investigation into operation of
the antitrust law
The committee recommends new laws
to define exactly what combinations are
unlawful, so that the business interests
and the courts will have standard upon
which to proceed.
1t recommends federal interstate cor
poration commission with power to super
wise corporations, pass on and approve
combinations and agreements and take
over the work of dssolving illegal corpo-
rations, such as the Standard Oil company
or the American Tobacco company. Com
menting upon the decision of the supreme
court in the Standard Oil case, in which
the rule of reason" was called in, the
report, written by Senator Cummins, says:
Confidence in Supreme Court
"The committe has full confidence in the
integrity, intelligence and patriotism of
The SIN af
but it is unwilling to repose in that court
or any other court the vast and unde-
fined powers which it must exercise in the
administration of the statutes under the
rule which it has promulgated 1t substi-
tutes the court in the place of Congress,
for whenever the rule is invoked the court
does not administer the law but makes
the law. If it continues in force the fed
eral courts will insofar 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 Eng
land.
The people of this country will not per-
nit the courts to declare a policy for
them with respect to this subject II
We do not promptly exercise our execu-
tive powers, the courts will suffer I'M
measurable injury in the loss OF that re-
spect and confidence so essential to ALL
1t is conceivable that in country
that is governed by a written censtitu-
ton and statute law that the courts
can be permitted to test each restraint
of trade by che economic standard which
may happen to approve AS the anti
trust statute is now construed, 1t Is i'm.
n0SSihlP for association pf mo
however diligent they maye be in seek.
ing advice, and however jealous to fol.
low it, to know whether what they ara
doing or what they are seeking to- do,
will be ultimately found by the su-
preue court TO be a due or undue re-
straint ftrade'
The Steel Trust Suit
In the further criticism of the SUI
preme courts rule of reason" the Cum
nins report directs attention to the fact
that the governments suit for dsolu-
tion of the United States Steel corpora
ton will ultimately come before the SUI
preme 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 combination is a due or
undue restraint says the brief. "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 to fit par
ticular case. If we do not speedily
prescribe insofar as we can a legislature
rule by which to measure the form OF
contraction and restrain of trade with
which we are familiar, or with which
we can anticipate, we cease to be a gov
ernment of law and become a govern