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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Dec. 5, 1911)
MBuFORD MATT, TRTBTJCT, MEDTORTj, OUTOON', TURRTUY. OROWJIDRU fi, l!)ll. ' PAGE SIX ' Supplementary Legislation Only MESSAGE OF 1 THE PRESIDENT Mr. Taft Champions the Anti trust Statute. KW REMEDIES SUGGESTED, I Not Repeat or Amendment, but Sup plemental Legislation Needed The "Tobacco Trust Decision an Effective One Federal Incorporation Recom mended and d Federal Corporation Commission Proposed The Test of "Reasonableness." To tho Senate and ITouse of Kepre pcnttitlvcs: 'This message Is the first of several which I shall send to coup-ess during tlie Interval between the opening of lit) regular session and its adjourn ment for tho Chrikmas holidays. The amount of information to be commu nicated ns to the ojveratloiis of the government, the number of importnnt tnibjeets calling for comment by the executive and tho transmission to con gress of exhaustive rtqwrts of special commissions make it Impossible to In clude In one message of n reasonable length n discussion of the topics that ought to bo brought to the attention of the national legislature nt Its ilrst regular session. The Antitrust Law Tha Supreme '" Court Decisions. 'In May last the supreme court hand ed down decisions in the suits in equi ty brought by the United States to en Join the further maintenance of the Standard Oil tmst and of the Ameri can Tobacco trust nnd to secure their dissolution. The decisions are eiocU making and serve to advise the busi ness world authoritatively of the scope nnd operation of the anti-trust net of 1S0O. Tho decudlns do not de part in any substantial way from the previous decisions of the court in con struing nnd applying this important statute, but they clarify those deci sions by further defining the already admitted exceptions to the literal con struction of the act. By the decrees they furnish n useful precedent as to tlie proper method of dealing with the capital and property of Illegal trusts. These decisions suggest the need nnd wlsdotnoff additional or supplemental legislation to make it easier for the entire business community to square with the rule of action and legality thus Anally established and to pre serve the benefit, freedom and spur of reasonable competition without loss of renl efficiency or progress. No. Change in the Rule of. -Decision, .Merely In Its Form of Expression. The stntutc in Its first section de clares to be illegal "every contract, combination In the form of trust or otherwise or conspiracy In restraint of trade or commerce among the sev eral states or with foreign nations" mid in the second declares guilty of n misdemeanor "every person who shall mouoiwllze or attempt to monopolize or combine, or conspire with any other persou to monopolize any part of the trade or commerce of tho several Btntes or with forelgu nations." vJu two early cases, where the statute was Invoked to eujoln n transporta tion rate agreement between inter state railroad companies, it was held that It was uo defense to show thnt tho agreement ns to rates complained of was reasonable nt common law, be cause It was said thnt the statute was directed against all contracts ami com binations In restraint of trade, whether reasonable nt common law or not. It was plalu from tho record, however, that the contracts complained of in those cases would not have been deem ed reasonable at common law, lu sub sequent cases the court wild that the statute should tie given a reasonable construction nnd refused to include wjthlu its inhibition certain contrac tual restraints of trade which It de nominated iih Incidental or us Indirect, fl'hese eases of restnmt of trade that the court excepted from the operation of the stntuto wore Instance. which at common law would have been call ed reasonable. In tho Standard Oil and tobacco casus, therefore, the court merely adopted the Jests of tjie com mon law and in defining exceptions to the literal application of the stntuto only substituted for tlie test of being Incidental or Indirect that ol being reasonable, mid this without varying lu the slightest tho actual scope nud effect of tlii statute. In other words, all tho cases under tho statute which have now been decided would have been decided tlie same way If the court had originally accepted In its construction tin rule at common law. -it has been said that the court by In troducing Into the construction of the ilntuto common luw distinctions has ffinsoululod It. This Is obviously un i up. Hy Its Judgment every contract uud comblniUluu in restraint of inter state trade made with the purpose or necessary effect of controlling price by stllllnif coinpelltlou or of establish ing In whole or In part u monopoly of such trade is condemned by the stnt ijte. The most extreme critics cannot Instance u case that ought to bo con demned under the stntuto wblcdi ia not brought within lu terms ns thus con- ,-Tlu) suggestion Is also made tliat the mi promo court by its decision in tho last two cases has committed to the court the undefined and unlimited dis cretion to determine whether a case of restraint of trado Is within the terms j of thp statute. Tills Is wholly untrue. A reasonable restraint of trade nt com mon law Is well understood and Is clearly ilcfltiiHl. It docs not rest In the discretion of tiio court. It must bo limited to accomplish tlio purpose of n lawful main contract to which In order that It shall bo enforceable nt nil It must ho Incidental. If It exceed tho Leeds of that contract It Is void. Tho test of reasonableness was never applied by the court nt eommnn law to contracts or combinations or con- Fpiraclea in restraint of trade whose f punose was or whoso uecossary effect would be to stltlc cometltlon. to con trol prices or establish monopolies. Fay that such contracts or com)iiu-j tlons or conspiracies might be lawful If the lmrtles to them were onl.v mod crate Hi tno uso or tne power tuus se cured and did not etact from the pub lie too groat nnd exorbitant prices, It is s true that many theorlts and others j engaged in business violating the stat utc have hoped that some sikh Hue could be drawu by courts, but no court of authority has ever attempted it Certainly there Is nothing in the divi sions of the latest two cases from which such a dangerous theory of Ju diclal discretion in enforcing this stat ute cau derive the slightest sanction. Force and Effectiveness of Statute a Matter of Growth. We have been twenty-one years mak ing this statute effective for the pur poses for which It was enaetod. The Knight cn-e was discouraging and seemed to remit to the states the whole available power to attack and suppress the evils of the trusts. Slowly, howev er, the error of that Judgmeut was cor rected, and only in tlie Inst three or four years has tho heavy hand of the law been laid upon the great Illegal combinations that have exercised such an absolute dominion over Inany of our industries. Criminal prosecutions have been brought, aud a number are pend ing, but Juries have felt averse to con victing for Jail sentences and Judges have been most reluctant to Impose such sentences on men of resjiectnble htandlng In society whose offence has been regarded as merely statutory. Still, as the offense becomes better un derstood and the committing of, it par takes more of studied aud deliberate defiance of the law we can be confi dent that Juries will convict individu als and that Jail sentences will be Im posed. The Remedy In Equity by Dissolution. In the Standard Oil ense the supreme and circuit courts found the combina tion to be a monopoly of the interstate business of refining, transporting-aud marketing petroleum and Its products, effected aud maintained through thirty-seven different corporations, the stock of which was held by a New Jer sey company. It In effect commanded the dissolution of this combination, di rected the transfer and pro ratn distri bution by tlie New Jersey company of tlie stock held by it in the thirty-seven corporations to nnd among its stock holders, and the corporations aud indi vidual defendants were enjoined from conspiring or combining to restore such monopoly, nnd all agreements be tween the subsidiary corporations tend ing to produce or bring about further violatloua of the act were enjoined. In the tobacco case the court found that the individual defendants, twenty-nine in number, had been engaged in a successful effort to ncqulre com plete dominion over the manufacture, sale nnd distribution of tobacco in this country and abroad and that this had been done by combinations made with a puriKiso and effect to stifle competi tion, control prices and establish a monopoly, not only in the manufacture of tobacco, but also of tin foil nnd lic orice used in Its manufacture and of Its products of cigars, cigarettes and snuffs. The tobacco suit pnsented a far moro complicated and difficult case than the Standard Oil suit for a decree which would effectuate the will of the court and eud the violation of the slat ute. Thoro was here no single hold ing company, as lu tho case of the Standard Oil trust. The main company was the American Tobacco eoinpanj'. n manufacturing, selling and holding compauy. Tho plan adopted to de stroy the combination aud restore com petition involved the rcdlvlslou of the capital und plants of the whole trusf between home of the companies con stituting the trust nud new coinpanicj organized for the punses of tho de crco and made parties to it and num bering, new and old, fourteen. Situation After Readjustment. The American Tobacco company (old), readjusted capital ?02,0O0.0CO; the Liggett & Meyers Tobacco company (new), capital $07,000,000; the P. Loril lard company (now), capital 17,000, 000. and the It, 3, Reynold Tobacco company (old), capital $7,r)2.".00O. are t-lilofly engaged In the manufacture nnd Bale of chewing and smoking td bacco nnd cigars. The former one tin foil company Is divided into two, one of $823,000 capital and tho other of 5400.000. The one snuff company Is divided into three companies, one with a capital of ? 15,000,000. another with a capital of $8,000,000 nnd a third with a capital of $8,000,000. The licorice companies are two. one with a capital r$3,759,:WO and another avIUi a capi tal of $'-000.000. There Is also the ISritlsh-Auierlenn Tobacco company, a IJritlsJi, corporation, doing business abroad with u capital of siJ.000.000. the I'orto Itlcan Tobacco company, with n capital of $1,800,000. and tho corporation of United Cigar Stores with ii capital of $9,000,000. Under this arrangement each of the different kinds of business will be dis tributed between two or niore compa nies with a division of the prominent brands iu tlie same tobacco products, so us to mako competition not ouly possible, but necessary. Thus the Hinoklng tobacco business of the coun , try is divided so that the present in- n ii i 'J ISS" "'" imniMi, . i ii i n . I I,,,,, Photo Copyright, late by Amurlcun dependent cflmpdnle- lic l!l.:J9 per cent, while the American Tobacco com pany will have KU ht cent, the Lig gett & Meyers SO.UCi per cent, the Irll lard company -'"2.82 per cent and the Heynolds company 2.0; ht cent. The stock of the other thirteen companies, both preferred and common, bus lievn taken from the defendant American Tobacco company and lias Ih-oh dis tributed nmoifg Its .stockholder. All covenants restricting competition have been declared .null anil further (ht formance of them has ben enjoined. The preferred stock of the different companies hni now lioen given voting lower which was denied It under tlie old organization. The ratio of the pre ferred stock to the common was as 7S to -to. This constitutes a very decided change in the character of the owner ship ami control of each company. In the orlglnnl suit there were twen-ty-niue defendants, who were charged with being the conspirators through ttuom me ii.egwi couiDinauon acquired uuu i-Aen-isei lis uuiiiwiui ooillliuoil. Under the decree thee defendants will hold amounts of stock lu the various distributee companies ranging from II per cent ns a maximum to 2S-A per rent as a minimum, except in tho ease of ouo small company, the Porto Itlcan Tobacco company, lu which they will hoW 4o per cent. The twenty-nine In dividual defendants are enjoined for three years from buyiug nny stock ex cept Trom each other, nnd the group Is thus prevented from extending Its con trol during that period. All parties to the suit and the new companies who nro made parties are enjoined jwrpet ually from In nny way effecting nny combination between any of tho com panies in violation of the statute by way of resumption of the old trust. Each of the fourteen companies Is en Joined from acquiring jdock In any of the others. All these compnnles nre enjoined from having common direc tors or officers, or common buying or selling agents, or common olllcea, or lending money to each other. 8izeof New Companies. Objection was made by certain in dependent tobacco compnnles thnt this settlement was unjust because It left companies with very large capital in nctlvo business and thnt the settle ment thnt would be effective to put all on nn equality would bo a division of the capital nnd plant of the trust into small fractious in amount more near ly, equal to that of each of the Inde pendent companies. This contention results from a iiilsiiiHtcrstandlng of the anti-trust law and Its purpose. It is not Intended thereby to prevent the accumulation of Inrge capital in busi ness enterprises. In which such n com bination can secure reduced cost of production, sale- and distribution. It is directed against nuelj an aggrega tion of capital only when its purpose Is that of stilling competition, enhanc ing or controlling price nnd establish ing u monopoly. If wo shall hnvo by tho decree defeated these purpose nnd restored competition between tho largo units Into which the cnpltnl und plant have been divided we shall have accompllbhed the useful purpose of tho statute. Confiscation Not tho Purpose of the Statute, It la not the purpose of the statute to confiscate the property nnd capital of the offending trusts. Methods of punishment by II no or Imprisonment of the Individual offenders, by lino of the corporation or by forfeiture of Its goods In transportation nro provided, but the proceeding in equity Is a spe cific remedy to stop the operation of the trust by injunction and prevent the future use of tho plant uud capital in violation of tho statute. Effectiveness of Decree, I -venture to say that not In tho his tory of American law has a decree moro effective for hucIi a purpose been entered by a court than that against the tobacco trust. As f'iietilt Judge Noyes said lu his Judgment approving tho decree: "Tho extent to which It has been necessary to tear apart this combina tion and force ln' "'v forms wjtli the attendant burdens ouffcht to demon strate that the fedenll antitrust statute is n drastic wUituto whJoh accomplishes effective results, which so long as It stands on the stntuto books must be obeyed uud which cannot be disobey ed without iucuirlnir fnrreachliiir iuoi. Need to Chevk Trusts Says President Taft I'n.ss Asuclatlna. iUes. And. on Hi.' oNr luitni. tn,. c.c-'r! rrconstrmtli n of thN oi p.inlaiilcn tM)uhf1u-!i that the offocl of eafurclMK this statute Is nt to de-st-ov. but to reconstruct; not to de molish, but to n-create In nerordRlirc with the conditions which tlwcnnmc" h ih de l-reil slmll exlt among the Jennie of the I'nlted KtnlM." Conmon Stock Ownership. It 1ms Iven usiiHtti that the 'pw e:-t pru rata ajid common tiwite?nlii In all tlwie compnulw by former stock holders or the trust would lusure a continuance of the stunt old single cow tni of all tl-e oompenleH Into which the trjwt has by derive lneti disinte grated. This Is erroneous and Is Imsed Upon the assumed IjyOlciicy and luiio.--mrtxnew of Jtidlclnl Injunction. The CumiMulcs are enJlfuJ from on-ojtors I'on or ceinl'fbntlnn: they have differ t it manager, dire ir. pun-lutiMujr und snlcK niMitK. If all or many of ti1(, nun,. stncklertder. r.w.-hln , t the IhtiMtndS. attempt U seetirt' concerted tu-ttnn of tjn iMnqw!:il with a Iew to the contrul of the murkct their miinU- is so. large that su'h an attempt coit'd not .tvell be cooiihsl. und Its iirlme uioveM.nnd nil Its imrtlN Ipunts wu!d be at vnev mil ect to con tempt pnKiellng" find lni'HsoumMit n' n summary eluirncr. The tniiuedl te result of the present situation will necessarily be actUHy by all the com IhiuIcs iiudor different nmiuixers, and then competition must follow or there will be nctlfhy by one cmpuiiy and stagnation bv another. Only a short ' ""'1 '' u dear path for h most mer time will inevitably -lead u change I ejwnu anil business men to follow. It in ownership of thf stock, as all op- I ":ny Uv l,mt 14,"',' " 1,,HM w ,,w portunity for contlintwl eo-nperatlon ! lv!, l"t I Mutmilt that the discus must illsiHqKiir. Those i rltics wlio w,l,l " e hrought out in Hiwik of this d!slntetlou in the trust t"1 ila u t,,,! fcar f as a moro change of Bat-menu have not t!ed execution of tim autl-trust law given coiwldemtlun to the InevitnWe wirkliiK of the decreo ami uuderstiiud little the personal danger of attempt lug to evade or set at naught tho sol emu Injunction of a court whose object is made plain by the decree uud whoso inhibitions are set forth with u detail and comprehenslve'ienK unexampled tn the history of equity Jurisprudence. Voluntary Reorganizations of Other Trusts at Hand. The off ot of these two decisions has led to dtxrctw dissolving tho combina tion of jimaufactururs of electric lamps, a wMitheru wboliwale grocers' umoplHtlon. hu Interlocutory dis-reo against the jiowiWr trust, with dlrcc tlons by the tin alt court compelling dissolution, nud other combinations of n similar history are now negotiating with the dcjiurtiiicut of Justice looking to n dislntogruUvii by decree nud re organization in accordance with Jaw. It soomu possiblo to bring nbunt theso reorganizations without general busi ness disturbance. Movement For Repeal of tho Anti- trust Law. nut now that the anti-trust act is seen to bo effecthe for tho uccoiiipllsh ment of the purpose of its enactment we nro mot by a cry from many differ ent quarters for Its repeal. It Is said to be olsdructiw of business progress. to be nu attempt to rextbro old fash loned methods of de'structlvu competl tloti between small units uud to make impossible thosu useful combinations of capital und the reduction of the cost of production tliut are essential to con tinued prosperity and normal growth. In the recent decisions tho supremo court makes clour that there Is noth ing in tho statute which condemns combinations of capital or mere big noss of plant organized to secure econ omy lu pioducdoii and u reduction of its cost. It Is only when the purpose or necessary effe-t of tho organization nnd innlutctiiuice of the combination or the uggrogutlon of Immense size nre the stilling of competition, actual nud potential, and the enhancing of prkea and oHtubllshhig a inonjmoly that tho Btituto Is violated. Mere sl.e Is no sin against tho law. The merging f two or more business plants necessari ly eliminates competition between the units thus combined, but this elimina tion is In contravention or the statute only whon the combination Is made fo,f purpose of ending thVpartleuhtr com petition lu order to Hcoiiro control of und enhance ptlvt-H and create n inn nojioly. Lack of Definitenese In tha Statute, Tho complaint Is made of the sic! ulo tliut it is uyt HUUlcleutly delliilte t . . m i .a i.. ili- rtpiiou "f linn v.U i .' tmideli to enable lill--Ui-i-i mw.i U it vol' Its violation. The nuggomloii Is tha we limy have a couitilmuloii of two corporations which limy run on for uars uud that subsequently tho at torney general may coorlinle that It was a violation of the statute ami that which was HUpswcd by the combiners to be innocent then turns out to be a loiiiblimtloii lu lo4atlou of the statute. The answer to this hypothetical ense Is that when men attempt to amass such stilpuidoiM capital as will eimble them to mipprett omintltlrtn, control 1 rl'o and ostablluli a immoisily they know the puf,o of their acts. Meg do not do eyi-h a thing without having It clearly in mind. If what they do In merely for the piirpom1 of reducing the cent of prmlui-tltMi. without the thought of HupprewlHgciiuipetltlon by utrofthe blgneiw f the 4s n t tkoy arv creating, then thtty cannot tie convicted nt the tluiv the u.ili.n U made, "or can the1, Ik.' emnletcd later unless It happen that later on they com-todo to slip press competition nnd take tlie" usual Methods for doing so uud thus eSttib. Ilih for thomeehe u monopoly. Thej eon In such n ense hardly complain If tho motive which subsequently Is ills cloned is attributed by the court to the original combination New Remedies Suggested. .Much l said of the repeal of tliU statute nud of constructive legislation Intended to accomplish tlie purisiso ,mv,, pwiuwi uotiuiig but glittering wnwiOMe" and have offensl no line of distinction or rule of nctlott ns dell nlte ami as clear as that which tlio hu prwmo court lUtdf las down lu en forcing the statute. Supplemental Legislation Needed, Not Repoal or Amendment. I seo nn objection, nnd Indeed I can sec decided advantage. In tho enact mera of a law which shall describe and denounce mnfhods of competition which nre unfair nud nre budges of (lie unlawful purpose denounced In the U'l-trnst law. Tho attempt nnd pttr- I,ww l! upptess a is.mpelltor by mi- ueifHuiiiiK mm ni u price so unprotltn Mo as to drive him out of business or lie making of exclusive contracts with customers under which they ate re quired to give up association wlli oth er manufacturers and numerous kin dred methods for stilling competition nnd effecting monop-dy should do 'do scribed with sulllclont accuracy In a criminal stntuto on the one hand to enable tlie gu eminent to shorten Its task by prosecuting single mlsdenican fr Instead of nu entire conspiracy and on the other hand to servo tho puroso of pointing out more In detail to (lie buslnes'i community what must bo avoided. Federal Incorporation Recommended. In a special niessago to congress on Jim. 7, 1DI0, I ventured tn point out tho disturbance to business that would probably attundthe dissolution of theso offending trusts. I imlil; "Hut such an investigation und pon- hIIiIi. prosecution of corporations whoso prosperity or destruction affects tho comfort not only of stockholders, but of millions of w,ago earners, employees mid associated tradesmen, must neces sarily tend to disturb tho confidence of the business cpifimuiilty, to dry up tho now (lowing sources of capital from Its places of hoarding and pro duct) a halt lu our present prosperity that will cause suffering mid strained circumstances among the Innocent ,.. tor ..t f.,.,nH 0t till, L,ilv .... T(l0 rna.Htloii which I wish In this ,,. ee . i,rllK t.(.,.y to the con- slilertuioii una discussion or congress Is whether, lu mder to avoid iiuch a possible business danger, something cannot bo done by which these busi ness combinations may be offered u nie.'iil without grcijt financial dis turbance, of changing the character, organization and extent of their bind nesn into one within the Hues of tho law under, federal control and super vision, securing compliance, with thu nut! trust utatute, -- - "(icncrnlly lu the Industrial coiubun thiliii called 'trusts' tho principal busi ness Is (lie sale of goods lu mitiiy stales uud ln.forolgu markets lu other nohIn, the Interstate and foreign bUHlness far o.vcoods the business done lu aliy one state This fact Mill Justify the fed. etui government lu granting n federal chin tor to Hiieh a combination to make uud soil In Interstate nud foreign com tuerie the products of useful tunuufno tun). under such limitations as will se cure a compliance with the untl-trlist law It Is possible so to fniine a stat ute that, while It oITcik protection to a federal company against harmful, ex at Ions ami uuuocnsHnry Invasion by tho stales, It shall subject it to icnsoun bio taxation and contrul by the states with respect to Its purely local luisl ness "Corporations orguulrcd under this act should be prohibited from acquir ing and holding stock In other cm po rn I Ions (except for special reasons, upon nppiovnl by tho proper federal authority), thus avoiding the mention under national auspices of the holding compauy with subordinate coiMimthius lu different states, whli'b has been such an effective agency In (he crea tion of tho great trusts and monopo lies, "If tho prohibition of the null-trust act against combinations In restraint of trade Is to lie elfistlvely enforced It Is essential that the national govern ment hhatl provide for the creation of national corporations to carry on a le gltlmute limine throughout the null ed State. The tontllctlng lawn of the different states of the Union with re spect to foreign corporations make it dlltlciilt, Jf not lniMtsble, for one cor- istratlou to comply with their require ment so as to carry on buslitiws In n number of different stati." I renew the recommendation of the enactment of a general law providing for the voluntary formation of cor ponitlon to eiigHMc lu trade aud com mcrco among the slute and with for elgu tuitions. Ksery nrtJliineilt which n tlisu advanced for sn h a law anil every explanation v,hlh nas nt that time ofi'ercd to imhwIIiIo otM''Uous has liei'ii iufiruied by uur experience since thw eiifoicegieiit of the nidi-tru! 'tat ute has iiwiillol In thu actual dlnM.u tlou of eithe commeiclal orgiuilwi tlons. , It Is even more manifest now than It was then that th. denunciation of consplracliw lu rostralnt of trade should not uud does ml menu thv de nial of orgauliuitUms large enough to be Intrusted llh our Interstate nud forelgu trade. It has lvcn made more clear now than It was then thnt a purely iiegathe statute like the anti trust law may well be supplemented by sieelfic provisions for the building up and regulation of legitimate nu tlounl ami foreign commerce. Government Administrative Experts Needed to Aid Courts tn Trust Dissolutions. The drafting of the decree In the dissolution of the present 1 1 tints, with n view to their reorganization Into le gitimate corporations, has Hindu It es pecially apparent that the courts nro not provided with (he administrative machinery to make the necesiwry In quiries preparatory to reorganisation or to pursue mnu Inquiries, nnd they should bo empowered to Invoke the aid of thu bureau of corporations In determining the suitable rcorguuhm lion of tho disintegrated parts. The circuit court aud the attorney general were greatly aided In" framing the de cree lu the tobacco tryst dissolution by an expert from the bureau of corpora tions. Federal Corporation Commission Pro posed, I do not set forth lu detail the term and sections of n statute which might supply the constructive lobulation per mitting nud aiding tile Tnriuullon of combination-! of capital Into federal corporations. They should lie Mibject to rigid rnlci as to their organization and procedure. Including effwllvo pub I city, and to the closest supervision as ,'j tho Issue of slock and bonds by nu excculh'o bureau or commission In tho department of commerce and labor, to which In times of doubt they might well submit their proponed plans for future business. It tnust he distinctly Understood that Incorporation under n federal law could not exempt the com pany thus formed and Its Incorporators and malingers from prosecution under the antl-trusjL law for subsequent' Il legal conduct, but the publicity of Its procedure nud the opportunity for fre quent consultation with the bureau or imuinlfislon In charge of tho lucorisira fimi as to the legitimate purpose of Its Irausai tlons would offer It iik great su ch rlty ngulust successful jirpscuutiuiiH for violations of thu law us would bo practical or wlso. Such a bureau or commission might well be Invested also with the duty already icferred to of aiding courts lu the dissolution nud rem cation of trusts within thu law. It should be nu executive tribunal or the dignity and power of the comptroller of tho cur reucy or tho Interstate commerce, com mission, which now oxorelhos supervis ory power over Important classes of (oriHiritllons under federal regiilutlon. The drafting of such a federal In corporation law would offer ample op portunity to prevent many manifest evils lu corporate management today, Including Irresponsibility of control iu Mm hands of the few who are not th6 real owners. Incorporation Voluntary, I recommend that the federal char ters thus to be granted shall bo volun tary, ut least until experience Justifies mandatory provisions. The benefit to bo derived from tho operation of grout businesses under (ho protection of such it charter would attract nil who iv niulou's to keep within the linen of tlie law, Other large coiublimtlomi that' fall to take ndvuulage of the federal Imorporallon will not have u right tn complain If their fnlbno Is axe 1 1 lied to unwillingness to submit their transac tlutiN to the careful olllclal scrutiny. competent supervision ami publicity ntleudaut upon tlm enjoyment of siiult a chatter. Only Supplemental Legislation Needed, The opportunity thus suggested for federal Incorporation? It ncoius to me, Is suitable constructive legislation needed to facilitate tho squaring uf great Imlimlilal oiiloiptlsoa to IhnViilo of nelloii Isttt down by the null-trust law. This statute as construed by the siipieiue court must continue to bo the Hue of distinction for legitimate bust newt. It must bo enforced unless vn nre to bunUh Individualism from nil hiisliiofs und i educe It to ouo common system of regulation or contiol of prlies like that which now piovalm with i expert to public utilities ami which when applied to all business would bo it long step toward atnto so cialism. Importance of the Anti-trust Act. Tho niitl-ttu.it net Is the expression of the effort of a freedom loving peo ple to preserve equality of opportunity. It Is the toiilt of the confident deter mination of Niieh a po.iplo to maintain their future growth by preserving mi controlled and unrestricted tho elder prise of the Individual, lilt Industry, his Ingenuity,' his Intelligence and Ids Independent courage. bor twenty jears or more this stat ute has been upon the statute book. All know Its general purpose anil ap proved. Many of It violators were cynical over Iti ns4nuiil Impotence. It seemed Impossible of enforcement. Slowly the mills of the courts ground, nud only gradually did the majesty of tln law nssort Itself. Many of Its staliKineii nuthors died "before It be came n living furee, nud they and oth ers saw the evil grow which they had Imjied to dtutro) .Vow Its otllcaoy Is seen: now Its power Is liiwvy; mm Its object Ii near nchlovcmuiit. Now wo hour the cm II for Its repeal on the plea that It Interfere with business pros perity, and we nn ndvUed In most general terms how by some other stnt uto and lu some other way the evil we are Jiikt stamping out wu Ih cured If we ouly a band on this work uf twen ty years and try another experiment for another term of years, It Is said (hat the net has not done good Can this be satd lu the face of the cffts'i of the Northern rW'tirltlo decree? That decree was lu no way so drastic or lulilbltlve lu detail as ei ther the Htondnnt Oil decree or the lolwcco d i -crco. Hut did It not stop for all time the then wivverfttl move ment toward the control of alt the railroads of the country lu ii single linml? Much a 0110 man ixiwur could not have U'ou 11 healthful lutluencelu the republic, even though exercised under the general supervision of an Interstate ootutnlMstnu. 1 10 wo desire to make such ruthless combinations and monoisilbw Iawfjil7 When nil euerglei are dlrH-ted. not to ward the reduction of the cost of pro diKtlon for tho public benefit by a healthful competition, but toward new wa.vs mid means for making perma nent lu 11 few hands the ntMotiitu con trol of (he conditions and prlcm pre veiling lu the whole Held of I ml 11 try, then Individual ontcrpiW and effort will I, imnilyxed and the spirit of coinmercbil freedom will fie diwd, j W.M. II. TAFT. The White House. Hue. .'1, Id 1. I Games Come in and let us show vou 1 MedfOrd Book Store I To hnvo Inunilry work dnno In right hero. Wo nro ulwayii on tho job. Idttlit liiconvenlonooH like flreii rnnnot throw us off our trol ley. , W'vi novor conuu to do our work, and to do It lu the Hntne excellent wny making prompt deliveries, and glvlnj; thu hiiiiiu snow whlto fliilnh thnt wo linyo alwnyu been noted for, THE STAR Steam Laundry, Medford, Oregon 17 m "If Mm AVwiv-' V JP '.- 1 -