Part 19 (1/2)

_The Sherman Anti-”trust” Law._--Finally, in obedience to a widespread popular demand, Congress took action in 1890 by pa.s.sing what is popularly known as the Sherman anti-”trust” act to protect trade and commerce among the states against unlawful restraint and monopolies.

This act declared that every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce among the states or with foreign nations was illegal, and it prescribed appropriate penalties for violations thereof. This law, however, applies only to ”trusts” which are in restraint of trade among the states or with foreign nations. It has no application to those whose activities are confined entirely within the boundaries of a single state; with such ”trusts” the states alone have the power to deal.

In pursuance of the act of 1890, prosecutions have been inst.i.tuted in the federal courts against a large number of ”trusts,” and some of them have been broken up, but the larger number have escaped. In 1911, for example, the Supreme Court decided that the Standard Oil and tobacco ”trusts” were illegal, and their dissolution was decreed.

_The Clayton Anti-”trust” Act._--In 1914 Congress pa.s.sed another important act directed against combinations in restraint of trade. In brief, it prohibits price discriminations among purchasers, exclusive trade agreements between manufacturers and retailers, the holding of the stock of one corporation by another, and interlocking directorates. Like the other anti-”trust” acts it applies, of course, only to persons or corporations engaged in interstate commerce or trade. To enforce the act a _federal trade commission_ was created. It consists of five members appointed by the President, at a salary of $10,000 each.

=Federal Pure Food Legislation.=--The commerce clause of the Const.i.tution is also the source of some important legislation designed to protect the public against impure, unwholesome, and adulterated foods produced in the United States. We have already called attention to the legislation of Congress against the importation of impure foods, and teas from abroad. Still more recently Congress pa.s.sed an interstate pure food law prohibiting the transportation among the states and territories of any food products which are adulterated or which contain foreign substances not indicated in the labels. The law also provides for the fixing of a standard of pure foods and other products transported from one state to another or intended for interstate transportation, and provides that they must come up to the standard prescribed.

_The Meat Inspection Law._--To protect the public against unwholesome meat products, Congress enacted in 1891 a law which was strengthened in important particulars in 1906, providing for the inspection of slaughtering houses whose products are intended for interstate commerce.

The law requires the registration of all establishments engaged in slaughtering animals the products of which are to be s.h.i.+pped into other states or are intended for export. Each is given a number, and federal inspectors are a.s.signed to inspect the animals intended for slaughter, to inspect their carca.s.ses in certain cases, and to see that the business of slaughtering is conducted under clean and wholesome conditions. Animals found suffering with certain diseases are not allowed to be slaughtered for food purposes, and meat discovered to be unwholesome must be rejected. Supervision is also exercised over the processes of packing and canning, and there are detailed regulations in regard to labeling.

=References.= ANDREWS, Manual of the Const.i.tution, pp. 89-95.

BEARD, American Government, ch. xix. COOLEY, Principles of Const.i.tutional Law, pp. 66-88. HART, Actual Government, ch. xxiv.

HINSDALE, American Government, secs. 374-380. JOHNSON, Railway Transportation, ch. xxvi.

=Ill.u.s.trative Material.=--Annual reports of the Interstate Commerce Commission, of the Department of Agriculture, of the Attorney-General, of the Commissioner of Navigation, of the Commissioner of Immigration, and of the Public Health and Marine Hospital Service.

RESEARCH QUESTIONS

1. What were the reasons for giving Congress control over foreign and interstate commerce?

2. Why did the delegates from the Southern states oppose giving this power to Congress?

3. What is meant by the ”original package” doctrine?

4. Why should a railroad company be prohibited from granting rebates?

For charging more for a ”short haul” than for a ”long haul”? From transporting the products of its own mines and manufactories? From pooling its freight or earnings?

5. What are the arguments for and against granting government subsidies for the upbuilding of the merchant marine?

6. What have been the princ.i.p.al reasons for the decline of the American carrying trade?

7. What is the amount of money annually appropriated for improving the rivers and harbors of the country?

8. How has the commerce clause of the Const.i.tution been the source of important extensions of the power of the national government? Mention some important recent acts of Congress that have been pa.s.sed in pursuance of this clause.

9. Should Congress, in your judgment, impose greater restrictions upon immigration than it now imposes?

10. Do you think Congress should have power to regulate the business of life insurance? To regulate marriage and divorce?

11. Is the policy of governmental regulation of railroads preferable to governmental owners.h.i.+p? Give your reasons.

CHAPTER XIV