Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-02-17
GOVERNMENT BRIEF
|NHARVESTER CASE
Suit to Dissolve International
Company Is Being Heard
on Appeal.
BEFORE SUPREME COURT

The government today filed it's brief
in the Supreme Court of the United
States in the dissolution suit against
the International Harvester Company,
its officers and directors. appealed from
the federal court in Minnesota, which
ordered the dissofuttUn Of the company.
There Is no such thing as good or
benevolent trust within the meaning of
the Sherman law, the government con-
tends, and all combinations which break
down the competitive system are in re-
straint of trade.
Review of Authorities.
After an exhaustive review of authori-
ties and of declarations made by Sena-
tor Sherman, author of the measure, at
the time of it's passage, the brief con-
tinueS:
1t is apparent that the objection to
substituting a despotic organization of
industry for the competitive system
were quite as much social and political
as economic: and therefore it would not
have satisfied Congress to be told as
we are told in this case that the power
which they feared was thus far being
exercised benevolently, that prices had
+
cred, nor the quality of products de-
graded, nor competitors oppressed. In
their minds the mere existence of such
powerful combinations was an rvil--a
continuing danger-from which. in the
long run, if not immedia tely, would come
disaster
For, as in the organization of govern
ment benevolence can never justify abso-
lutism, neither can it do so in the or
ganiZation of industry. The fundamental
contention of the defendants (that the
anti trust law prohibits only combina-
tions injurious to the public by raising
prices. limiting production. deteriorating
quality. decreasing wages or depressing
competitors) loses sight entirely of the
broader purpose and basis of the act.
"It fails to take into account that the
view of public policy upon which Congress
leglSlated was not to wait until the evils
have occurred or become imminent and
then attempt to restrain them but to
prevent their occurrence by striking at
undue concentration of economic power
itself.
Laws Prohibitions Construed.
"Unless the underlying purposes of the
act are to be wholly thwarted, it's pro-
hibitions must be construed to include
every combination in whatever form it
interferes or theatens to interfere with
tne norman ana eIIectlVe operation OF the
law of competition in any branch of trade
either because the combination is so COM
prehensive that such is its necessary ef-
feet or because the character of the
means employed or other circumstances
justify the inference that such an inter-
ference is intended and therefore danger
ously probable.
The companys plea that three for
midable competitors. with a combined
capital of $91,G00,0C0, were engaged in
the same business and afforded brisk
and testimony relating to
the contention, are reviewed in detail.
The competition thus afforded, the brief
states was negligible" and the COM
petition of all other companies COM
bined left the defendants in possession
of approximately SO per cent of the
trade, sufficient, it is contended, to cor
stitute them a monopoly within the
meaning of the law.
The customary request that the man
ner in which the dissolution may be
best effected be left to the lower court
to devise is made.