The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-02-04
TwENTY-THIRD INSTALLMENr

/ commodities within a state. and that
nothing in the sherman Anti Trust
Law prohibited a corporation from
acquiring all the stock OF other cor
porations through exchange OF its
stock for theirs. such exchange not
peing commerce" in the opinion OF
me court, even though by such ac-
QUESTION the corporation was en-
abled to control the entire produc-
ton OF a commodity that was a nee
essity of life.
Multiplying the Antitrust Law.
ne erect OF this decision was not
, merely the absolute notification OF
The Antitrust Law, so far as indus
trlal corporations were concerned.
tnst. under the constitution, the ma
lonal government could pass no law
I really effective for the destruction
or control of such combinations.
Tnis decision left the national gov
eminent. that is, the people of the
nation; practically helpless TO deal
with the large combinations OF mod
ern business. The courts in other
cases asserted the power OF the fed
efal government TO enforce the Anti
Trust Law so far as transportation
rates by railways engaged in inter-
STATE commerce were concerned. But
! so long as as the trusts were free TO
control the production of commodi-
ties without interference from the
? general government, they were well
content TO let the transportation OF
commodities take care of itself-es-
pecially as the law against rebates
was al that time a dead letter: and
the court by its decision in the
Knight case had interdicted any in
terference by the President or by
congress with the production of com
modities. II was on the authority
OF TINS case, that practically all the
DIE trusts in the United States. ex-
cepting those already mentioned, were
formed. Usually they Were organ
lzed as holding" companies, each one
acquiring control of its constituent
corporations by exchanging it's stock
Tor theirs. an operation which the
supreme court had thus decided could
rot be prohibited. controlled. regu-
lated, or even questioned by the fed
eral government
The Northern Securities comnanv.
such was the condition of our laws
when ] acceded TO the presidency
Just before my accession a small
group or hnanciers. desiring TO profit
ON the governmental fmpofenca IN
/ winch We had been reduced by the
Knight decision. had ARRANGED To take
control OF practically the entire rail-
way system In the northWest-pos-
sibly as the first step toward con.
trolling the entire railway system of
the country. This control of the
horthWeStern railway systems was 10
&c erected by organizing new hold
ing company and exchanging ia
STOCK OF the various corporations en-
kaged in railway transportation
throughout that vast territory. exact
ly as the sugar trust had acquired
control OF the knight company and
otner concerns. This company was
called 40.
pany Not long after | became presi-
dent, on the advice of the attorney
general. Mr. Knox. and through him.
! ordered proceedings to be Instituted
Tor the dissolution of the company. As
Tar as could be told by their utter.
ahces az the time, among all the great
lawyer in the United States Mr. Knox
was the only one who believed thar
inns action could be sustained. The
ueIehse was based expressly on the
GROUND That the supreme court in the
might case had explicitly sanctioned
the formation OF such a company as
Ine Northern Securities company.
Inc representatives OF privilege init
mated. and sometimes assetred out
rlght. that in directing the action 10
be brought I had shown a lack OF re-
Spect Tor the supreme court which
mad already decided the question al
issue by vote of eight 10 one. Mr..
SN''iNs " hlte. tnen on the court and
now chief Justice. set forth the posi.
non with what / regard as incontro-
Neruble logic. In giving the views of
me dissenting minority on the action
had brought. he said
ne parallel between the two cases
tine Knight case and the Northern
securities cascl IS complete. The one
corporation acquired the stock of oth-
or and competing corporations in eX-
change for its own. IL was conceded
Tor the purposes of the case. that in
doing so monopoly had been brought
ABOUT IN the refining af sugar that
me sugar TO be produced was likely
10 become the subject Of interstate
commerce. and indeed that part OF il
would certainly become so. But the
power OF Congress was decided not to
extend 10 the subject. because the
ownership OF the stock in the corpora
lions was not itself commerce.
oVerthrowine the knight Case
Decision.
Mr.. Justice White was entirely cor.
rect ~ this statement. The cases we're
parallel " was necessary 10 reverse 2
INC Knight case in the interests Of the !
people against monopoly and privilege
JUST as % had been TO reverse the bred
scott case in the interest 81 the PEG :
pie against slavery and privilege. lust
as later 10 became necessary 10 ra-
verse tho New York Rakeshop case b.
IN the interest 81 tho people AGAINST
mat form ~ monopolistic privilege
which puts human rights below prop /