The United States Since the Civil WarLingley, Charles Ramsdell
History
The United States Since the Civil War
Lingley, Charles Ramsdell
United States -- History -- 1865-1921
The purpose of the framers of the Act seems clearly to have been to
draw up a general measure whose terms should be those usual in the
English common law and then rest on the assurance that the courts would
interpret its meaning in the light of former practice. For some
centuries restraint of trade had been considered illegal in England,
but no contract was held to be contrary to law if it provided only a
_reasonable_ restraint--that is, if the restraint was merely minor and
subsidiary. The Sherman act was a Senate measure, was presented from
the Judiciary Committee and was passed precisely as drawn up by it. In
speaking from the Committee, both Edmunds and Hoar took the attitude
which the latter expressed as follows: "The great thing that this bill
does ... is to extend the common-law principles, which protected fair
competition ... in England, to international and interstate commerce in
the United States." Just how far the members of Congress who were not
on the Judiciary Committee of the Senate shared in this view or really
understood the bill can not be said. Indeed, many members of both
chambers absented themselves when the bill came to a vote.[4]
For a long time the Sherman Act like the Interstate Commerce Act was
singularly ineffective and futile. Trusts were nominally dissolved, but
the separate parts were conducted under a common and uniform policy by
the same board of managers. The Standard Oil Company changed its form
by selecting the Standard Oil Company of New Jersey as a "holding
corporation." Stock of the members of the combination was exchanged for
stock in the New Jersey organization, leaving control in the same hands
as before. The "same business was carried on in the same way but 'under
a new sign.'" The wide variety of conditions tolerated under the
corporation laws of the several states made confusion worse confounded.
In its early attempts to convict corporations of violation of the law,
the government was uniformly defeated.
Public-domain text, read in full here on John Shaqi.
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