Contemporary American History, 1877-1913Beard, Charles A. (Charles Austin)
History
Contemporary American History, 1877-1913
Beard, Charles A. (Charles Austin)
United States -- History -- 1865-1921
In the midst of this general confusion of opinion on the trust, it is
not surprising that Congress in the Sherman law of 1890 enunciated no
clear principles. Apparently it intended to restore competition by
declaring illegal "every contract, combination in the form of trust or
otherwise, or conspiracy, in restraint of trade or commerce among the
several states or with foreign nations." But a study of the debates over
the law fails to show any consistent opinion as to what combinations
were included within the prohibition or as to the exact meaning of
"restraint of trade." Of course, the lawyers pointed at once to the
simplicity of the old common law doctrine that conspiracies in restraint
of trade are illegal, but this was an answer in verbiage which gave no
real clew to concrete forms of restraint under the complex conditions of
modern life.
The vagueness of the Sherman anti-trust law was a subject of remark
during its passage through Congress. O. H. Platt, in the Senate,
criticized the bill as attacking all combinations, no matter what their
practices or forms. "I believe," he said, "that every man in business--I
do not care whether he is a farmer, a laborer, a miner, a sailor,
manufacturer, a merchant--has a right, a legal and a moral right, to
obtain a fair profit upon his business and his work; and if he is driven
by fierce competition to a spot where his business is unremunerative, I
believe it is his right to combine for the purpose of raising prices
until they shall be fair and remunerative. This bill makes no
distinction. It says that every combination which has the effect in any
way to advance prices is illegal and void.... The theory of this bill is
that prices must never be advanced by two or more persons, no matter how
ruinously low they may be. That theory I denounce as utterly untenable,
as immoral."
Senator Platt then went on to say that the whole subject had not been
adequately considered and that the bill was a piece of politics, not of
statesmanship. "I am sorry, Mr. President," he continued, "that we have
not had a bill which had been carefully prepared, which had been
thoughtfully prepared, which had been honestly prepared, to meet the
object which we all desire to meet. The conduct of the Senate for the
past three days--and I make no personal allusions--has not been in the
line of the honest preparation of a bill to prohibit and punish trusts.
It has been in the line of getting some bill with that title that we
might go to the country with. The questions of whether the bill would be
operative, of how it would operate, or whether it was within the power
of Congress to enact it, have been whistled down the wind in this Senate
as idle talk, and the whole effort has been to get some bill headed: 'A
Bill to Punish Trusts,' with which to go to the country."
Public-domain text, read in full here on John Shaqi.
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