The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-07

despite the D0nonb ACCfuInG nom IN
telllsent cooperation, even among oom-
petitors. To-day the country feels .
reason for satisfaction because It has
been demonstrated that b~usinsss IL o
going backward under legal coercion but
forward under legal sanction. Yet for
ten years or more the sravest doubts
were entertained on this score because
Of the colossal confusion Of political
theory and the statutes against mo-
nopoly.
Some years before the Steel Corpora
ton was formed the Supreme Court
In the uga trust case. apparently
made the Sherman Nct innocuous by
deciding that manufacturing was not
commerce. For a long time II VAS sup
posed that the antitrust law was .
dead letter and on that supposition the
country wen through an era strikingly
characterized by the formation OF COR
porate combinations. Public antago-
nism was politically excited against the
size Of the new Industrial units and In
the conduct Of more than one so-calied
trust occasion was given for apprehen-
sion that monopoly practices would
achieve domination OF general business.
Executive action was compelled which
led to a long regime Of prosecution Of
large corporations and combinations
under the Sherman law. and for a time
In a variety OF cases. eliminating In
the Northern Securities decision, the
tendency OF judicial construction was to
hold that the mere combination of bust
ness formerly competing was essentially
unlawful.
II was not until the oil and tobacco
trust litigations that the Interpretation
Of the law began to take intelligent
shape. The whole tenor of political no.
lions and previous judicial construction
was graphically summed up In Judge
Lacombe's famous reductio ad alb
surdum. When he set forth. in the Fed
cral Circuit Court opinion In the to-
bacco trust suit. that the law obliged
the court to find against the company
because II was a combination of pre-
viously competing companies. When
che Supreme Court passed on the oil
and tobacco trusts It repudiated Judge
Lacombe's argument. II was then tina,
the court enunciated the doctrine OF
the rule OF reason In applying the law.
II did not. as political demagogues as
serted. amend the law by saying that
II forbade only unreasonable restraints
OF trade and unreasonable restriction OF
competition. What the court held was
simply hat the law was impossible OF
application. that any law could not be
applied except In tho light of reason.
and the court even went 80 far as 10
say that. regardless OF previous inter-
pretations. the rule Of reason would be
guiding thereafter in the application
Of the Sherman act.
What the Steel Decision Does.
Unfortunately tho Supreme Courts
exposition of tho law in the oil and
tobacco litigation did not seem to set
tie matters. In subsequent litigation
tho Federal Attorney-Gcneral harked
back to the discarded theory that any
combination OF competing concerns into
one organization was unlawful. Tn
fortunately also there has been such
a conflict OF decisions by the lower
Federal courts in various parts OF the
country that until decision was rem
dered last week at Trenton in the case
or the Steel Corporation there had been
no concrete illustration OF what specific
meaning the Supreme Court had tried
TO give 10 the antitrust law.
The Steel Corporation is our largest
corporate combination. In its form Il
involved the direct issue of a holding
company merging n variety OF compct-
itors. Every possible point which the
Government could make against TIE cor
poration in accordance with obsolete
economic conceptions OF the force and
intent OF the antitrust act was In
cluded In the Governments bill. with
only a relatively unimportant exception
the court indicated the corporation in
every feature OF its organization AID
conduct. and the upshot OF the decision
has been 10 convince the leaders OF
financial and corporate affairs that the
sherman law. instead OF being an In
strumert OF oppression. Is really a char
ter OF business liberty.
There emains of curse whatever
doubt attaches 10 the fact that the SUI
preme Court has not passed on the case
Of the Steel Corporation. but the lower
courts decision is 30 obviously derived
from the Supreme Courts employment
OF the rule OF reason that the doub,
which remains Is very slight. Indeed
the feeling Is mat appeal should hc
welcomed for rhe preponderant certainty
Of a substantial affirmation of the lower
courts ruling and because a review OF
II by the Supreme Court would remove
practically the last vestige of obscurlty
from the sherman law.
Before the war broke out In Europe
business was In n state OF progressive de-
preston. while values were steadily con
'racted. The anti-bus!ness phenomena
OF politics were primarily responsible
for the slowing down OF the business
movement, the declining tendency OF
prOftS n the rail- or prices, not ONLY
in securities but In other directions
At first the shock OF the war abroad IN
tensined the descent Of the United States
into hard times. Shortly Il began 70
appear that the wal was creating IN.
calculable factors OF expansion here
starting from the hard times level. anC
while the war has provided eason FOR
uneas.ness respecting our eventual re-
lations to II. they have shown them
selves to be OF comparatively small con-
sequence economically speaking. Con.
fdence In the future OF values has MOI
been diminishing but has been growing
on account Of the war. which has beer
bringing streams OF gold from all oveI
the world to make payment In the new
world money market Of the obligations
that the whole world 10 mourning e
American finance and industry.
In tho degree therefore that tho re.
covery OF confidence has been retarded
by the Impressions OF tho political past
to the extent that the effect OF the las,
decade Of anti-business politics a per.
sisted In business depression. tho reasons
now v~ouchsafed for believing hat a new
political dispensation has opened viii
coitcide with reasons already operative
as a result OF the European war FOL
the exhibition of augmented business
courage. The Steel suit decision comes
very opportunely TO enable tho banking
and business community "a grasp ths
chances that arc offering at homo ant
abroad for enterprising activity. II add.
on n situation characterized by tho sold
D.,s .&at> ~ sr.l~w ~. -~o,,Atta.