11

A.—s

advice is at the service of the wealthy trusts, and that $1,000,000, has been paid as a single fee to a counsel of eminence. At the end of the year 1902 public indignation had been excited against the domination and methods of trusts, particularly by the events accompanying the anthracite-coal miners' strike. The suffering entailed on tens of thousands of people in the northern States, and the deaths of many, especially of children, through want of fuel and of properly cooked food, emphasized the revelations before the Commission appointed by President Roosevelt to arbitrate in the matter. On the assembly of Congress (the second session of the fifty-seventh Congress) twenty-seven anti-trust Bills made their appearance, some being introduced in the Lower House (House of Representatives) and some in the Senate. The Government brought forward a Bill to establish the Department of Commerce and Labour, generally to the effect that the department shall assimilate the existing Department of Labour, Bureau of Foreign Commerce, the Lighthouse Board, Bureau of Immigration, Bureau of Statistics, &c. The Department of Commerce and Labour to include a bureau, called the " Bureau of Corporations," for the purpose of collecting and publishing information concerning corporations engaged in inter-State or foreign commerce. The President to have power to transfer any branch of the public service or of the Inter-State Commerce Commission to the new department. After passing the Senate the Bill went to the House of Representatives, and was sent back with amendments, which, after Conference, contained provisions stating that in the department should be a Commissioner of Corporations whose duties it would be to make careful investigation into the organization and management of joint-stock companies or corporate combinations excepting among common carriers. The Commissioner to make recommendations to Congress for legislation on data reported. The design of the above-mentioned Bill was, of course, in the direction of publicity, and of the appointment of officers whose special business it should be to investigate and publish matters the trusts had in many cases kept secret. The next step was to prohibit rebates and discriminations. For this purpose a Bill was introduced by Senator Elkins, having for its motive the restriction of trusts acting as carriers, in the direction of fining corporations for evil-doing instead of imprisoning their officers. The wilful failure of any carrier to publish tariff rates or to observe tariff rates becomes a misdemeanour, and it is made unlawful for any person, persons, or corporations to solicit, accept, or receive rebates, concessions, or discriminations in the transportation of property in inter-State or foreign commerce. The proposed Act also authorised a writ of injunction so as to give to any Circuit Court the power of summary action in case of disobedience to the law. Another Bill, generally known as the Knox Bill (from being drawn on recommendations of the AttorneyGeneral), had for its object expediting proceedings in law cases against trusts. It provided that any suit in equity under the Sherman anti-trust law should be given precedence over others and be expedited in every way, .being assigned for hearing before not less than three Circuit Judges. This was aimed to prevent the miscarriage of justice by the vexatious delays hitherto caused by obstacles thrown by wealthy corporations in the path of adverse litigation. These three Bills, that for the formation of the Department of Commerce and Labour, that for preventing rebates and discriminations, and that to expedite matters before the Courts, were all well received and passed by the Senate. However, an amendment to the Bill for the Department of Commerce was introduced, accepted, and became celebrated as the "Nelson amendment." By this the newly created Commissioner of Corporations received the powers formerly enjoyed by the Inter-State Commerce Commission in respect to corporations, joint-stock companies, and combinations under the " Act to regulate Commerce." While these-Bills were being debated in the Senate the House of Representatives had accepted a Bill on its own account. This was the famous Littlefield Bill, named after its author the Hon. C. E. Littlefield, of Maine. It contained many of the provisions included in the Bills sent to the Senate, but was more drastic in its scope. It required all corporations to file with the Inter-State Commerce Commission particulars as to organizations, stocks, regulations, &c, and gave the Commission powers for these similar to those it lately held in regard to railways. It endeavoured to prevent large corporations crushing competitors by cutting prices, &c. It was currently reported that this Bill had the approval of President Roosevelt and the Executive. It passed the House of Representatives unanimously, but on being referred to the Judiciary Committee became terribly mauled. It emerged with amendments to the effect that it should only apply to trusts formed after it came into force, and not to any corporation whose capital was less than $100,000. Thus emasculated, the Bill lost the support of the President and his officers, and the session of Congress terminated without it reaching the statute-book. The result was that the Bills already passed had to be received as the full measure of anti-trust legislation passed by the Congress in the spring of 1903. The full texts of the anti-trust Acts now in force are given in the appendix to Part 11. of this report —viz., " The Act to regulate Commerce," 1887, amended 1889, 1891, and 1895; "An Act in Relation to Testimony before the Inter-State Commerce Commission," &c, 1893; " An Act to protect Trade and Commerce against Unlawful Restraints and Monopolies," 1890 (the Sherman Act); "An Act to expedite the Hearing and Determination of Suits in Equity," &c, 1903 ; "Extract from Department of Commerce and Labour Act," 1903; " An Act to further regulate Commerce with Foreign Nations and among the States," 1903. (It is perhaps of interest to note that the Act generally known as the " Sherman anti-trust law" was not that well-known man's work. Senator Sherman introduced from the Senate Finance Committee a Bill to regulate trusts, but his Bill was designed to take away from individual States the power to regulate their domestic commerce. Such a Bill was regarded as unconstitutional, so it was referred to the Judiciary Committee, which reported an anti-trust measure having none of the features of the Sherman Bill. This, however, became known as the Sherman Act (1890), although Mr. Sherman opposed it, and rather than vote for it walked out from the Senate Chamber.)