State of the Union AddressesTaft, William H. (William Howard)
History
State of the Union Addresses
Taft, William H. (William Howard)
Presidents -- United States -- Messages; United States -- Politics and government -- Sources
The test of reasonableness was never applied by the court at common law to
contracts or combinations or conspiracies in restraint of trade whose
purpose was or whose necessary effect would be to stifle competition, to
control prices, or establish monopolies. The courts never assumed power to
say that such contracts or combinations or conspiracies might be lawful if
the parties to them were only moderate in the use of the power thus secured
and did not exact from the public too great and exorbitant prices. It is
true that many theorists, and others engaged in business violating the
statute, have hoped that some such line could be drawn by courts; but no
court of authority has ever attempted it. Certainly there is nothing in the
decisions of the latest two cases from which such a dangerous theory of
judicial discretion in enforcing this statute can derive the slightest
sanction.
FORCE AND EFFECTIVENESS OF STATUTE A MATTER OF GROWTH.
We have been twenty-one years making this statute effective for the
purposes for which it was enacted. The Knight case was discouraging and
seemed to remit to the States the whole available power to attack and
suppress the evils of the trusts. Slowly, however, the error of that
judgment was corrected, and only in the last three or four years has the
heavy hand of the law been laid upon the great illegal combinations that
have exercised such an absolute dominion over many of our industries.
Criminal prosecutions have been brought and a number are pending, but
juries have felt averse to convicting for jail sentences, and judges have
been most reluctant to impose such sentences on men of respectable standing
in society whose offense has been regarded as merely statutory. Still, as
the offense becomes better understood and the committing of it partakes
more of studied and deliberate defiance of the law, we can be confident
that juries will convict individuals and that jail sentences will be
imposed.
THE REMEDY IN EQUITY BY DISSOLUTION.
In the Standard Oil case the Supreme and Circuit Courts found the
combination to be a monopoly of the interstate business of refining,
transporting, and marketing petroleum and its products, effected and
maintained through thirty-seven different corporations, the stock of which
was held by a New Jersey company. It in effect commanded the dissolution of
this combination, directed the transfer and pro rata distribution by the
New Jersey company of the stock held by it in the thirty-seven corporations
to and among its stockholders; and the corporations and individual
defendants were enjoined from conspiring or combining to restore such
monopoly; and all agreements between the subsidiary corporations tending to
produce or bring about further violations of the act were enjoined.
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