Evening star., 1915-08-15
len Are Guarded by Sympathetic Parent


feet may lessen competition or tend TO
create monopoly" Refiners have
complained that an oil company fire.
auently reduces it's prices in certain To-
caltties far below the cost of produc-
fion SO as to drive its competitors out
of the markets. The new law puts
stop TO such practices and its enforce
ment. in way. has been made the duty
OF the trade commission.
The same act prohibits tying con-
tracts Such contract means that
an exclusive sale or lease of goods.
wares merchandise. machinery. sup
pies or other commodities. whether
patented or unpatented," cannot be
made to a merchant or a manufa cturer
with the understanding that he is bar
red from purchasing or leasing the
same sort of machine or product
from some one else. The trade COM
mission is charged with the la Dor OF
breaking UP and ending contracts OF
such character.
1t must always be shown, however
that the price determinations and ty-
ing contracts. in their effect substan-
TALLY lessen competition or tend to
create monopoly in some line of COM
nerce When the commission believes
that any person or corporation has
oeen employing unfair methods OF
competition or violating the antitrust
laws, 1t can investigate the practices
or that person or the officers of that
corporation and, If guilt be established.
can order change of policy.
Nor can corporation engaged in in
terstate commerce acquire directly or
indirectly, the whole or any part OF
the stock of another corporal ton" when
the enect may be substantially ito les
sen competition or to restrain com
merce or tend to create monopoIv"
in any branch of business
Furthermore, after September .s.
1912 IL Shall be unlawful for a person
~ oe director or other officer or en-
ploye IN more than one bank banking
ASSOCIATION or trust company" the de-
posts. capital. surplus and undivided
prof1ts Of either of which "aggreeate
more than $1,000, 600" The object her.
or the new antitrust act is to make
monopoly in money impossible All OF
the seeds of monopoly. financial and in
dustrial. as Mr.. Davies phrases the idea.
are to be dug up and annihilated
Neither after September. next year,
may person be director in any two
or more corporations, any one of which
has capital. surplus and undivided
profits aggregating more than $1,000
O00." and which is engaged in whole or
in part in commerce. if such corpora atoms
are or shall have been heretofore COM
petitors, SO that the elimination of COM
petition by agreement between them
would constitute violation of any of the
antitrust laws" Thus are interlocking
directories Outlawed and the trade COM
mission is directed to see that the statute
is obeyed
Persons who refuse to answer the sum-
mons OF the commission, to testify. to re-
ply to questions or to produce documents
which are called for and are in their pos
session shall be (note the mandatory
"shall') fined mot less than 81, 900 nor
more than s., ,OO0" or shall he Imprisoned
for not more than one year. or they
may be fined and sent to Jail as we'll
False entries in the books of corpora
tions, the removal of such books from the
United States or the willful mutlation or
Justification of documentary evidence is
punishab BILE also by large fines and by I'M
prisonment. And il corporation fails to
make such reports as are required it for
feits $500 for each and every day of the
continuance Of such failure the money
to be paid into the Treasury Of the United
States
Back of the new law against monopoly
is the federal trade commission, the in
vestigator and, on occasion, the prosecu-
tor of those accused of using unfair meth
ods in business. And back of the COM
mission are the United States courts In
a more beneficial sense. perhaps. the trade
commission is, to degree. an Interpreter
OF all ant trust laws. When manu-
facturer, for example, is in doubt as to
the meaning of the statutes. when he de-
sfres to know IL he can perform certain
acts. the commission will inform him. or
will set him right if he has gone wrong
and keep him straight thereafter.
Many of the Investigations Of the COM
mission will be informal. Complaints of
unfair methods of competition will be nu-
merous: they are numerous already.
Some of them. perhaps, will be made SIM
ply to injure those persons whose business
has been brought into question Publicity
will not be given to such cases. There will
be an investigation, but there will be no
spreading abroad of unfounded charges
If, however, the antitrust laws are
seemingly being violated. two sets of ex-
perts will consider such complaints as
may be received relating to the matter.
Lawyers will inquire into the legal aspects
of the case and economists will ascertain
what effects tie alleged unfair practices
have OH commerce. The hearing will then
follow. Those concerned will have an op
portunity to testify and to argue and the
public will know all that is being said and
done
1T is in the interest of the public
Mr. Davies explains the philosophy of the
trade commission, that processes Of
amicable accommodation should first be
exhausted before formal complaints
instituted that necesstate long and
technical course of legal procedure"
Moreover. business men today" he de-
clares, do not desire to disobey the
law"
Copyright, 1915. by James B. MorrowD