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T1IU CITIZEN, WI3DNKSDAY, VKU. 21, 1012.
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Attorney General Declares
There Is No Oocasion
For Its Amendment.
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From an article by George W. Wick
erham, attorney general of tho United
States, in the Century Manaiine for
February. Copyright, 1912, by the
Century company.
DISCONTENT with the Shcrinnn
nutl-trust lmv nnd tts enforce
mont by this administration Is
not nearly so whit-spread us Is
iwpnlarly supposed. It Is n reasonable
assumption that the majority of the
people who nre discontented witli the
Sherman law and with Its enforcement
are the stockholders nnd others inter
ested in those corporations and com
binations charged with its violation.
The people who will most benellt from
the enforcement of the law are the
great army of consumers who have
been purchasing the products of these
corporations.
The purpose of the law is not to de
stroy Industries. Tho real purpose of
the Sherman law is to compel fail
trade, to protect the average business
man from Injury due to unfair nieth
ods of competition. It is meant to
keep the highways of commerce open
to all. hip and little, rich and poor, on
the same terms. Therein lies Us great
est ethical value.
The purpose of tho Sherman act is
to prevent undue combination and cen
tralization of power, and therefore in
issuing their decrees tho courts have
merely compelled the combinations
against vh..-h they have been directed
to resolve themselves Into their in
tegral parts. Tho property of the
stockholders remains. It Is as capable
of production and of earning dividend-
us ever
There Is. of course, some genuine ls
content with the Sherman law. Inn '
suspect most of it arises not so mm h
from any real uncertainty as to ns
meaning as from a realization of th.it
meaning.
Need of a Check to Monopoly.
1 think every thoughtful person will
agree that t In Sherman act or some
equally effective statute was absolute
ly necessary t check the glowing cen
tralization In a very few hands of the
vast iiidustiles of tho United States.
It Mas the danger of that centraliza
tion which the leaders saw In 1K!10,
when they framed and enacted tile
Sherman law Slowly, but irresistibh.
the construction of the statute h ii
been widened, until now it is donna
stinted to be iidequate to etlecl tli-il
great result.
Chic of the results which the Shor
111:111 law will accomplish, which must
be beiiellcial to a large class. Is to drive
out the middleman where the eondl
tious are such that the middleman t5
not the natural economic, result of the
operation of tin laws of trade.
It must be remembered that In all
this discussion nothing will really sub
the men who have built up the gr.-it
trusts and vhoe interests have been
in the monopolization of great lines of
industry but some method of contin
ulng in tho future, with greater or less
immunity from interference, the same
power and control which they have
enjojod in the past.
How to Eliminate Uncertainty.
In my opinion, the only effective way
to eliminate all genuine uncertainty Is
through a federal Incorporation act
containing provisions adequate to meet
the situation. Congress has recognlz
cd Its power by asserting the right to I
Interfere and control nnd to that ex
tent to regulate the conduct of Inter
stale commerce by declaring what con
Inlets, combinations, monopolies, elc.,
shall not he entered into. I believe il
is time for it to recognize Its duty to
provide proper vehicles for the cm.
duct of that commerce, so ns to ina.ii
nunecossiiry the combinations it In."
prohibited.
In the past congress has left the
whole law of association - the law a
eo-upeiation under corporate form- to
the state? This has necessarily hd
to the holding corporation wliereb tin
coniriil over an industry, through com
pnrntlvuly- small capital, can lie e-et
clsed with ever widening sweep anil
virtually without bounds. Congress
k'i mid pro ide for the formation of
rpoiotlons. which, after nil, Is 110th
lug more then to regulate the rule"
whereby men may associate themselves
In the conduct of Intoresttito commerce
with limited liability and with pre
vision for the transfer of their inter
csts in whole or In part without 111'
feeling the continued existence of the
association.
Congress should provide for the ereu
tlon of sin h bodies, should precrlhe
the rules 11 der which they may trans
net their business and should prote. 1
them In the transaction of that busi
ness in accordance with those rules.
Then and not until then will the prob
lem be effectively solved. Such 11 Inw
would remove all the scandal of corpo.
rate organization, of Inllated canluiSI
zatlou, of deceit of the public throm-'i
lack of Information or dlsxemlniill'in
of misinformation and would thus en
ublo the business of the country to In
conducted on a safe and sane baI
The federal corporation, being n crea
turo of the federal law, would be en
tirely subject to federal control, und
from time to time as tendencies dove'
oped which seemed to run counter to
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OFTIEfflll ABTI-TRUST LAW
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Suggests Optional Federal
corporation as a Means
Supplementing It.
In-
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the public Interests they could be
checked by appropriate legislation. In
the meantime they could be checked
by appropriate regulation.
The Regulation of Prices.
The moment the government suffers
to exist a combination of producers so
great thnt It fixes or hns the power to
tlx prices nt will nnd tho consumer has
no share In fixing those prices effective
governmental control must necessarl
ly provide a means of correcting that
price fixing by governmental lntcrpo
sltlon on the same lines thnt It lias
used In the case of the price of trans
portntlon under the Interstate com
merce net.
The fixing of prices by the govern
mont Is tho logical nnd Inevitable out
come of tho policy of recognizing some
trusts ns good and of attempting to dis
criminate between good nnd bad trusts
The "good trust" Is the combination
which, having the power to r.-unh out
Photo by American Press Association.
ATTORNEY GENERAL GEORGE W. WICKERSHAM.
nil opposition, does not exercise It fully
or does not exercise It so as to arouse
a general popular dissatisfaction. Un
der the Shermun law alone no such
thing can exist.
In all this discission I use the word
"trust" to mean a combination so great
as to amount to n potential monopoly.
No absolute monopoly has grown up
under the Sherman act. There alwnys
has been a small percentage of the busi
ness which was not ncqulred by a giv
en combination, but a trust has with
in itself that power which will enable
It either to become a monopoly or vir
tually to exercise all the control which
would be Inherent in n monopoly
Optional Federal Incorporation.
Then? nre those who believe federal
incorporation should bo made compul
sory, a prerequisite to the transaction
of Interstate commerce. I do not be
lieve that, because I think that the
desired end can lie achieved by mak
ing it optlonnl It Is not easy to work
a radical change in existing eondl
(Ions. Hut the federal incorporation
net should be made so attractive to
legitimate Industry as gradually and
perhaps rapidly to attract those en
gaged In Interstate commerce In n
large way. All those who wish to
combine or consolidate existing busi
nesses which are more or less com
petltlve, thus giving rise to questions
as to the applicability of the Sherman
law. would realize that federal incor
porntlon would so greatly facilitate
tho legitimate conduct of thnt busi
ness that they would not be willing to
forego its advantages.
On the other hand, the faithful nnd
rigid enforcement of the Sherman Inw
will soon demonstrate the folly of try
ing to carry on n business which Is
not legitimate. New enterprises would
lie formed under n federal Incorporn
tlon law. nnd perhaps after n time
five or ten years possibly the eondl
tlons might become such that con
gress could properly prescribe that
after a given date no Interstate com
merce should be carried on by any
corporation not organized under the
federal law.
My view has always been, however,
that the federal Incorporation law
should not be applied to small con
corns; that the great machinery of the
federal government which it would be
necessary to establish for such pur
pose ought not to be directed to little
concerns thnt can be more properlr
irgnnlzcd nnd carried on lu their ow
.ocnlltles, although they inay imikiu
to a certain extent lu business be
tween the states, As n rule, (lies
small concerns do not appeal general
ly to the public for their capital.
The first result of the provision fo
jtich federal Incorporation would l
that those who are actuated by 11 do
sire to conform with the law. but wh
are sincerely In doubt as to Its require
inents, would promptly nvail them
selves of It Others would rapidly fol
tow, because the advantages of sub
Jectlng themselves to such federal con
trol and of submitting to such super
vision and publicity would Include no
only n practical Insurance against pros
edition under the Sherman law, but a
stability of their securities otherwise
unattainable. It Is possible there
would be no need for further leglsla
tlon. On the other hand, congress
might find It wise later to make such
Incorporation compulsory lu the case
of all corporations doing an Interstate
business and offering their stocks or
bonds for public sale.
Law Effective as It Stands.
There Is, In my Judgment, no ofca
sion to nmend the Sherman law That
law is effective as It stands. To tiinetit!
It would merely necessitate further J11
dlclal Interpretation before It would
be as clear nnd ns enforceable as it i
today and would go far to destroy the
good results of twenty years of Judicial
interpretation. Hut there Is a possible
method of amplifying that law by ml
(lltloti or supplement, not by amend
mont Kor example, it hns been pro
posed and the president hns stated
that he sees no objection to it thnt tho
law might be supplemented by speci
fying some of the specific acts which
have been adjudged by the courts to
be embraced in the phrase "undue re
straint of interstate trade" in order
that merchants may have before them
In codified form a clear enumeration of
certain things they may not do and be
thus relieved of the so called "glitter
ing generality" of the statute. The
difficulty of carrying out this sugges
tion will be found when the drafts
man comes to write such a statute.
I am Inclined to think that formu
lating the various kinds of unfair trade
nnd undue restraints of trade which
would properly be Included In such 11
statute will add little new to the pop
ular understanding of the meaning of
the Sherman act, although, as the pres
Ident suggests In his message, it may
result lu shortening the task of the
prosecuting ollicers of the government.
Hut there should certainly be noth
ing In any additions to the statute to
enable a concern whose Ingenuity had
devised some new and unspecified
method of destroying competition to
plead Immunity from punishment be
cause that particular method or re
straint of trade was not made the sub
ject of express prohibition.
AT 60 WALKS 50 MILES.
S. E. Cavin'e Birthday Tramp Between
Philadelphia and Wilmington.
Samuel 10. Cavln of Philadelphia,
lawyer and member of the Union
League club, celebrated his sixtieth
birthday by walking to Wilmington
and return, a distance of approximate
ly fifty miles. He left the Union
League at -I o'clock in tho morning
and reached Wilmington at ll:l! a. m.
and arrived at the Union League again
at !:-15 nt night.
Mr. Cavln started the trip In a blind
ing snowstorm, and the snow contin
ued all day. making tho going very
heavy- He declared that he attributes
his splendid health to the a mount of
walking he does nnd advises all busi
ness men to follow his example und
they will not be troubled with iudlges
tlon. gout or rheumatism.
'Skyscraper For Seattle.
Seattle, It Is reported. Is to emulati
New York city and perhaps surpass
Chicago by building n forty-two story
skyscraper.
TO PHON BHAND
Dix Names Hand ti Investi
gate facts In Case.
GRAND JURY IS BUSY TOO.
Former Dotective Who Reported That
the SchlffValet-Burglar Had a Crim
inal Record Now Admits Hit Re
port to Judge Rosalsky Was
Not Based on Facts.
New York, Feb. in. Governor Dix
hns accepted Justice Gerard's sugges
tlon that the constitution prohibits a
supreme court Justice from accepting
any other otllcc und hns appointed e:
Judge Ulchard L. Hand of Kssex coun
ty ns special commissioner to report
whether the facts justify 11 pardon fo
Koike Kngcl Ilrandt, tho Schlff burglat
Justice Oerard will delay a decision
on the writ of habeas corpus In oidi i
to give tho governor time to receive i.
report from Judge Hand. If, however,
it becomes necssry Justice Cerarl
will sustain the writ and remand
Hrandt to the custody of the dlstrh t
attorney for trial on tho Indictment of
burglnry In the first degree.
The grand jury, assisted by District
Attorney Whitman, has begun in!
investigation to determine whether
Hrandt was tho victim of a conspiracy
when he was sentenced to thirty years
in Clinton prison by Judge Otto A. Ito
salsky. In thnt connection It Is known
that Judge Hosalsky, Howard S. Cans,
counsel for Mortimer L. Schlff; Mr
SchllT himself. Police Inspector Wil
liam W. McLaughlin and a man named
Rothschild met nt tho Criterion club 11
few days before Hrandt was sentenced
The most interesting revelations had
to do with the grand jury Investiga
tions. It Is now known that Indict
ments for conspiracy are expected In
District Attorney Whitman ns the re
suit of the inquiry as to what Improper
Influences were used in getting Brandt
into the penitentiary for a long term
A pardon for Hrandt and that Is like
ly to come tiny day will, of course,
have no effect on the conspiracy lnvcs
tigatiott. Both the district attornej
and the attorney general are deter
mined to get nil the facts and proce- i
against any persons the grand jur.
may point out.
The testimony of former Detectiv.
Lieutenant Joseph I). Woolrldge be
fore the grand jury Indicated that Un
report which he submitted to Inspectoi
McLaughlin and which was taken int )
consideration by Judge Hosalsky In
sentencing Hrandt was framed before
Woolrldge was assigned by McLaugh
lln to find out If Brandt had a crimi
nal record. Woolrldge. testified that
he got the assignment on April 1, 1007
tlnee days before Brandt was commit
ted to Clinton prison. But the records
of the police department contained a
letter from Howard S. Guns written
to Inspector McLaughlin on March 'M.
HI07, In which Mr. Cans outlines the
character of the report desired and ox
presses confidence that he could get a
postponement of sentence from Judge
Hosalsky.
It was Woolridge's testimony that
brought out the nnnouncenient that In
dlctments for conspiracy will come out
of the grand jury investigations. He
was asked to tell all he knew about
the report that he read to Judge Ho
salsky on April 4, 11)07 the report that
said that Brandt had been dismissed
by six employers for dishonesty before
he got a Job with Mortimer L. Schlff.
Woolrldge lulmltted outright that, so
far as lie was concerned, the report
was untrue.
JEFF WOULD COME BACK.
Former Champion May Decide to Fight
Johnson Again.
New York, Feb. 1.". In a signed stu:'
! tueiit wired from Los Angeles James .1
Jeffries Intimates that he may decide
to return to the ring for nnother bailie
with Jack Johnson. He doesn't saj
outright that he will fight again, but
hints enough to create the belief that
he Is seriously thinking of It.
Jeff Intimates that if he should ha,
pen to whip Johnson the public woul l
regai!! it as a fake. Furthermore, he
repeats the assertion that before the
battle, so called, at Heno somebody put
drugs In his teacup. In a word, Jeff
appeared to be feeling the pulse of the
sporting public with the Idea of learn
ing whether It will fall for another
championship between the negro and
himself.
OTTO H. KAHN SILENT.
Won't Say Whether He Will Live In
' England In the Future.
I New York, Kelt. lfi.-Otto II. Kahn.
who has been an active member of the
firm of Kuhn, Loeb & Co. since 181)7
and one of the twelve young men
named by Thomas F. Hyan as future
kings of American finance, returned
1 from Kuropo on the Olympic.
I Mr. Kahn und the members of his
firm have refused to make any state
ment concerning the reports thnt he
would give up his American connec
tions nnd live In Kngland. entering pol
itics there.
Growth of the Farm.
We notlco the Jokvs about farmers grow
lesB
For the farmer himself has Brown smart,
as you Kuess,
And he prows bigger crops by a very
Cleat deal,
Bo he Brown rather wealthy and buys a
'mobile.
THE NORTHWESTERN MUTUAL
OF MILWAUKEE, WIS.'
Agency at llonesdale, Wayne Co., Pa.
UTIOU THH CM ANNUAL rtEPOIlT.
Total admitted assets , t m mi ya tr.
Total Insurance In force ............ 1 osozra 7ns'no
Total number policy-holders ................ ' 'Ja'Jsioo
New lnsurnr.ee Reported and paid for In 1910 118 78S03SOO
Increase In Insurance In force over 190 67 ?4oWw
Total Income for 1910 ' ' bi ots'rm'h
Total payment to policy-holders 32Wxm'm
Hallo of expense and taxes to Incom 1171 per 'cent
rot! WILL MAKE NO MISTAKB IF TOU INSUMR WITH P
H. A. TINQLEY, Agent.
HONESDALE, PA.
THIS and THAT
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HERE one man gets rich through
hazarous speculation a hundred
get POOR,
The wise man chooses
e better plan and places
his money in
HONESDALE DIME BANK,
Honcsdale, Pa.
'o Close Out
Short Ends.
Dress Goods, Ribbons,
Laces also a lot of
Single Tailor
Skirts Long Coats and Chi
ren's Winter Garments.
An K I Ew It I A I A KVKnPr'rKA IlliPWIfUli Mil. Hill-
J
AND
foissiiei Underwear
To make room for our
out single lots
ENNER & CO.
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NUF SED
'iiiiiiitHHiiiiiiHititnHiiiiinmiiiitiiiimit
LIFE INSURANCE COMPANY
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HERE one man slays poor by
his slow methods of saving,
a hundred get RICH.
this bank.
Silk Wash Goods an
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Spring Stock and cleanin
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