Perth Amboy evening news., 1921-12-24
The Evening News will not be published on Monday
Christmas Day.
ARE ALL BUSINESS MEN CRIMINALS?

Loo rrh1ic oninion in regard to "big business not changed
during that time so that what used to be considered not only
unfair. but detrimental to the best interests OF the puDIc'
is now looked upon as a matter of course and even encour-
aged as a means of building up trade and developing the
nations resources?
These questions are suggested as a result OF recent
court actions and decisions in reference to the Sherman
.aw. Several heads of the tile industry have been sent to
iail because they had a bus ness organization that was found
to be contrary TO the provisions of the Sherman law. Lead
es in the manufacture of terra Gotta have been fined on the
same ground. Now, within the past few days the United
States Supreme Court has handed down a decision to the
effect that the 'open competition plan adopted by the
southern hardwood manufacturers in the conduct of their
business is illegal, acting as a restraint of trade, which Is
prohibited by the Sherman antitrust law.
In expressing his satisfaction over this most recent de-
cision of the supreme court in regard to the Sherman law,
Samuel Untermyer, counsel for the Lockwood committee
in New York whose Investigations led to the action against
the terra Gotta men and other manufacturers engaged in
the building industries, declared that there are hundreds
of these criminal conspiracies involving thousands OF mer-
chants operating in combinations all over the country"
New ones are being organized almost daily" Mr.. Inter
myer continued. "This decision clears the way for the
conviction of hundreds of firms and corporations in the
building industry that are already under Indictment or on
our list"
What does all this mean? When Mr.. Untermyer
speaks of thousands of merchants and hundreds of corpora
lions and business firms he comes pretty near including
everybody engaged in business these days. If these are all
criminals then the modern way of doing business must be
criminal. Under the Sherman law, passed over thirty years
ago, all of these men may be put in Jail and there are not
iails enough to hold them all. And suppose there were
tails sufficient, what a chaotic state the business world
would be in with all the merchants and manufacturers
locked up.
AS a matter of fact, does not this situation show that
times have changed, that business is done on an entirely
different basis; that laws passed thirty years ago to meet
conditions that frightened us then, but which we have now
come to recognize as wholly legitimate, are more of a him
drance than a help in building up trade and developing the
country?
Take the terra Gotta industry. for instance, as this is an
industry that vitality concerns Perth Amboy and vicinity.
The leading terra Gotta companies together with their ohi-
GERS located in the East, were indicted on five separate
counts charging that they had divided the United States into
three territories for business purposes; that they were stiff
ing competition, filing prices, establishing percentages of
business, etc.
The indicted men agreed to plead guilty only to the
count charging them with the division of territory. During
a four day argument, during which the United States district
attorney and his assistants continually demanded impris-
onment for these terra Gotta manufacturers, it was brought
out that the profits of the terra Gotta companies last year
were less than fifteen per cent. on the actual capital inves-
ted in the terra Gotta business. The average for the last ten
years was shown to be about eight per cent. There is moth
ing really startling in this-nothing to send high class bust
ness men to Jail for.
Now, if the Sherman law is to be used as an instrument
TO create chaos or to bring about a condition which ultimate
w would result in trade war instead of constructive coop
Grafton it is time for the national administration to take
steps toward having this antique monstrosity repealed and a
law enacted that will not make criminals out of thousands
OF merchants and manufacturers who are conducting their
business according to what is now accepted as ordinary
methods.
Judge Learned Hand, who presided in the case against
the terra Gotta men, has declared that the Sherman law re-
quires someone to show us just what the law means II
after thirty years a law is so dense and complicated and I'M
adapted to current business practices that the judiciary its
self has not a clear idea of what it means, surely it is time
the law was discarded and a law that is constructive and
workable enacted to take its place.
There is said to be some 1000 trade or 'open price
associations in the United States. These associations must
and doubtless do, serve a purpose. They are born of neces-
sity. 1t behooves our present so-called business administra-
ton, then, to find some other means than criminal prosecu-
ton to show business men of the United States how they
may legally cooperate for the common good of their work
ers, the public and the orderly progress of their business.
1t is apparent that something more up to date than the
persent Sherman law is needed if business is to continue tC
be conducted on a scale commensurate with the growth anc
deyelopment of the country.