Jacob Dorsey Forrest

“ Aside from this, the laws would fail of complete success in destroying monoplies, because none of them would prevent a single person from gaining control of an industry. With the prevailing view of the liberty of the individual, it is necessary to find a combination or conspiracy, or a corporation created by the state, to attack. It is not that individual monopolists are not regarded with suspicion; for the opposition to department stores and similar enterprises is frequently pronounced. But these have not yet been declared opposed to public policy ”

“ With the further progress of the coöperative movement, which is sure to come, we may expect further legislation becoming more and more rational; but the decision of the individual cases, with due allowance for time and place and in harmony with the principles of common law—which means that abandonment by a privileged party of its duty to the public will not be tolerated—will do more to solve the problem than legislation of the kind we have been considering. ”

“ The first combinations to be attacked were the railroads and telegraph lines, because these were more apparent than the capitalistic monopolies that were being formed. Railroad and telegraph companies were always corporations, and always acquired privileges under the public right of eminent domain. Trade combinations were frequently not corporations, and were so little the creatures of the state that the right of state interference was not so clearly perceived. There has never been any doubt as to the right of the state to keep corporations, which are its creatures, under strict surveillance. ”

“ In spite of this difference, the old opposition, perpetuated in our constitutions and handed down in tradition, has had a potent influence in shaping the popular hostility to the modern monopoly. This influence has been most powerful in the political sphere. Monopolies are opposed because they are supposed to be inimical to our free institutions. It is felt that they should not be tolerated, both because the few are supposed to get undue advantage of the many, and because of the ability of powerful corporations to corrupt legislatures. ”

“ The United States law differs from the state laws only in its application to interstate commerce and combinations in the territories and the District of Columbia. Most of the laws are directed against monopolies in ordinary merchandise; but Kansas includes combinations which control the loan or use of money, fix attorneys' and physicians' fees, control the cost or rate of insurance, or which tend to advance the rate of interest for the borrower, and South Dakota declares that it is against public policy and illegal to form a combination to prevent a fair competition for a low rate of interest. ”

“ Recent legislation against trusts, monopolistic corporations, and railway consolidations is the modern expression of a sentiment which finds its roots far back in English history. Modern monopolies bear little resemblance to those which existed prior to the middle of this century; yet the opposition to the latter, taking shape in constitutions and statutes, has largely influenced public opinion against modern capitalistic combinations. Modern monopolies are the outgrowth of industrial and economic conditions. ”

“ The most complete definition of a trust is given in the Illinois amendment of 1893, though the Texas law of 1889 covers nearly the same ground. The Illinois definition is as follows: A trust is a combination of capital, skill, or acts by two or more persons, firms, corporations, or associations of persons, or of two or more of them, for either, any, or all of the following purposes: First, to create or carry out restrictions in trade. ”

“ Presumably, then, if it is found that a trust can best subserve the interests of the public, and can be made to serve it impartially, there is nothing in the spirit of our laws to prevent a change of attitude toward such combinations. ”

“ In 1892 a short anti-combination clause was inserted in a general law concerning corporations passed by New York; and an amendment to the former law was passed by Louisiana. Amendments were passed in 1893 by Illinois, Minnesota, and South Dakota; and the same year California prohibited monopolies in livestock, and Nebraska in coal and lumber. North Dakota passed a law in 1895, to take effect January i, 1896, prohibiting combinations in grain and live stock, but having some general anti-trust features; and Missouri passed another amendment to the law of that state. ”

“ The generally unserviceable character of the anti-trust legislation must convince us that the question is no more settled than it was before the legislators began to grapple with it—at least existing laws do not settle it. As Von Halle says, "More may be expected finally from the decisions of the courts. Legal judgments depend upon the conception of public policy ”

“ The provisions of the laws do not apply to agricultural products, and live stock while in the hands of the producer, in Michigan, Mississippi, Nebraska and Texas, and, with exceptions, in Alabama. Most of the acts provide that foreign trusts operating in violation of them shall be prohibited from doing business in the states enacting the laws. Some of the laws prohibit corporations from holding trust certificates or stock. ”

“ No attempts were made to restrict monopolies, because monopolies did not exist; and since constant progress was seen to be possible under the reign of free competition, it was very generally supposed that free competition was the necessary condition of all material prosperity. ”

“ Thus the struggle went on until the people finally succeeded in setting aside the royal prerogative by the Revolution of 1688. The bill of rights contained no express declaration against monopolies; but it was made impossible for the king to grant them, and the act passed in the latter part of the reign of James I. was thus again made operative.
The English bill of rights was the model for the sections of American constitutions bearing the same title. The gist of these declarations was that the people had a right to security in their persons, property, and privileges. ”

“ Monopolies are further antagonized because they are opposed to the prevailing economic philosophy of the American people. The doctrine of laissez faire has probably been more completely engrafted upon the political and industrial institutions of this country, and more thoroughly absorbed into the consciousness of the people, than anywhere else in the world. ”

“ It is not to be expected, however, that the early constitutions and statutes will show any effort to prevent commercial combinations and restrictions of competition. The country was largely agricultural, and the vast unoccupied territory rendered impossible monopolies in that branch of industry which was generally pursued. Moreover, when manufactures began to develop, the more rapid development of the country and its growth in population made it impossible for the evils of competition to bear heavily upon any industry. ”

“ The solution will probably be something like that suggested by Von Halle in his conclusion: "It is my belief that the future belongs neither to the prophets of individualism, nor to the ideals of the social-democrats. ”

“ Second, to limit or reduce the production, or increase or reduce the price of merchandise or commodities. Third, to prevent competition in manufacture, making, transportation, sale, or purchase of merchandise, produce, or commodities. Fourth, to fix at any standard or figure whereby its price to the public shall be in any manner controlled or established upon any article or commodity of merchandise, produce, or manufacture intended for sale, use, or consumption in this state ”

“ The right and duty of the state to preserve conditions conducive to the general welfare being recognized, it may be expected that mistakes and blunders made because of ignorance of the real meaning of new industrial forces will be rectified as those forces are better understood. ”

“ II., p. 9. ↑ In addition to these the Massachusetts declaration of rights, adopted in 1780, states: "No man or corporation or association of men have any other title to obtain advantage or particular and exclusive privileges distinct from those of the community than what rises from the consideration of services rendered to the public." ↑ The tariff legislation is the only evidence of inconsistence with this theory. ↑ Spelling: "On Trusts and Monopolies." ↑ See "American and English Encyclopædia of Law," Vol. IV., Art. Corporations. ↑ Art. ”