The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1940-07-02

ldb6 Ul11 mo. VI UllG C1SL NDIlSICoS
Il trusts and combinations in restraint
nan, an Ohio Republican, on Dec. 4,
voiced in the campaign of 1884 and
then incorporated in the platforms
of both major parties in 1888-for a
curbs on the power of industrial
combinations.
Throughout so years of judicial
interpretation and administrative
application, the measure has be-
come embedded in the foundations
| Of American economy.
Assistant Attorney General Thur
man H. Arnold, directing the JUS
tice Departments Antitrust Divi-
sion, has said: ut is great tribute
to the vitality of the Sherman Act
that it has been able to preserve its
force throughout period of COM
plex economic changes.
| Vast Changes Covered
Drafted in an era of industrial
revolution, the Sherman Act has
survived the transition of the rail-
road, the arrival of new industrial
techniques, the development of
mechanical processes, immense
strides in physics and chemistry,
and the unprotected vista of cleo
tricity, the telephone, automobile
airplane, radio and motion pic
lures"
Sherman'S original measure was
rewritten twice before it finally was
approved unanimously by the SEN
ate judiciary committee. Senator
George F. Hoar, a distinguished
Massachusetts, lawyer, wrote the
act in the exact form in which it
eventually was placed on the statute
| books.
Only one vote was cast against
the bill in the senate. The house
approved it unanimously. President
Benjamin Harrison signed it on
July 2, 1890.
The measure long since has
passed from its original sphere of
trust busting" Within recent
months, labor unions and agricul-
tural groups have felt its teeth,
and fa.:.- practice committees Of
merchants have heard Arnold'S as
sertion that "size is not the cri-
terion" in the enforcement of the
| Sherman act.
| Demand For Enforcement
"At no time in its history" Ar
mold recently said, "has there been
such interest in the act nor such
consistent pressure for its enforce
ment.
"This pressure is particularly
noticeable in the medium metrop-
oils whose industries are beginning
to feel the effects of absentee
ownership.
"It also comes from consumers,
home builders, small retailers, and
farmers, who are forced to pay
tribute to organizations which have
seized startegic positions in the
distributing system and who are
thus able to block the channels Of
commerce"
Despite the periodic popularity
of the act, thea enforcement staff
seldom has been large enough to
handles cases brought to its atten-
ton. Even during the famous
"trust-busting" days of President
Theodore Roosevelt, the antitrust
division was comprised of only five
attorneys and four Stenographers.
At the beginning of the present
administration, Is attorneys were
on the staff. Since that time the
staff has been increased to ap-
proximately 200.
Wilder Prosecution Attempted
The larger staff, still considered
inadequate by Arnold was neces-
sary to meet the demands of a new
enforcement technique introduced
by him. That consists of attempt
ing the prosecution on a nation
wide basis of all members of any
particular industry who are sus-
pected of Sherman Act violations.
Arnold set out on this program
with the building trades industry
investigation and approximately L.
500 persons are under Indictment
throughout the nation as partici-
pants in attempts to establish trade
restraints.
The Sherman Act first was APP
piled in the courts against the
Nashville Coal Exchange, a group
operating mines in Kentucky and
Tennessee and dealing in coal in
Nashville. The Exchange was
charged with attempting to fix the
price for coal at Nashville and with
exacting fines from members who
violated the scale.
Few Cases at First
Although a victory in that case
caused an order from Attorney
General william H. H. Miller for
vigorous prosecution" of the act.
only seven cases were started under
the Harrison administration.
The 81 suffered a judicial set
back n 1895 when the US. Supreme
Court held in the Sugar Trust case
that Q monopoly OF manufacture is
not a monopoly of commerce. En-
forcement suffered for nearly q
decade under that ruling.
No indictments under the Sher-
man Act was obtained during the
administration of President william
Mckinley. Roosevelt. the Trust
Buster" followed the assassinated
Mckinley, and he started 43 anti
trust cases during his administra-
ton. ryior to that time umly 20
cases were instituted.
ing to retrieve a bottle they believed
| they left there