The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-19
THE ACT.
Wa It's Purpose 10 Prevent Com
bInatlOu or Com petitj0n?


To u EDITOR or THE suN-sr: Is
the Sherman law a statute directed
against combination or competition?
The National Cash Register Company
was no a combination, but was found
guilty because II was a successful COM
On the other hand the Northern Securi-
ties Company was held to be unlawful
as a combination OF two competing
roads. although there was no pretence
that II would or could have %extingulshed
the competition Of the Rock Island.
the Chicago. Milwaukee and 81. Paul.
Union Pacific. Atchison and others in
the same territory. Now. by the latest
decision. the United States Steel Cor
poration, although admittedly a COM
bination OF a dozen or more competing
concerns, is held to he lawful on the
ground that II has competed unsuccess-
fully with rival steel companies. In
stead OF competing as hard as II can,
which would be unlawful. II completes
gently. which is lawful. Ergo the stat
ute intends to suppress real competition
and preserve nominal competition. II
the steel rail pool, which has fixed the
price of that commodity for years and
years. Is allowed. why are railroad pools
forbidden? II the United States Steel
Corporation Is lawful. why Is the North
crn Securities Company unlawful?
II Is said that the "rule of reason"
judges each case by It's results" n
its result IL monopoly. the statute for
bids II. If there Is no monopoly. the
statute allows II. No such rule decide
the Northern Securities case. which was
purely a combination and not at all
a monopoly. But monopoly IL a result
that depends quite as much upon the
activities Of others, competitors. as
upon the defendant. To judgs the de-
PENDANTS guilt by the result" of monop-
oily or no monopoly In to judge him by
what others do. Thus. suppose you
were now TO combine the existing cop
per producing companies Of this coun-
try. ff no other copper mines are
opened. o are a monopoly. and guilty.
lf enough new mines are discovered
and worked. YOU cease to he n m%onorolv
and are innocent. Suppose you combine
the bakeries of this city. n nobody
starts a bakery outside the combination,
you are guilty. II a lot or other baker
les start up. you are innocent. In each
case you have lone the same thing. hut
you are not Judged by what you do
The test Of your guilt or innocence is
tho activities and Investments OF others.
And this IL called the "rule OF reason
When the sherman act was passed
senator Hoar and Senator Edmunds.
both good lawyers. who had much 10 do
with tho drafting OF II. were both ~
the opinion hat 1t would not forbid
price fixing agreements II the price were
REASONABLE. Now II is held that the
manufacturers OF patented specialties
md the publishers of books cannot fix
q uniform retail price upon them. even
II reasonable. Rut the United States
Steel Corporation, which Is and always
has heen a member of the steel rail
price fixing pool, gets a clean bill OF
When a man constantly c~ontradicts
himself. never SAYS what no means and
forever talks a mysterious jargon
which no one can understand. people
not respect him. hut turn away in
disgust. Why not a similar attitude
y statute? X. II. TowSFF.
NEW YORK, June is.