Page:American Journal of Sociology Volume 9.djvu/229

 ATTITUDE OF GOVERNMENT TOWARD TRUSTS 21$

movement toward a combination of independent concerns as detrimental to the public welfare.

Many states in their hasty legislation made exceptions to their sweeping enactments, as a result of which they contravene the federal constitution, and consequently are a nullity. The usual exception seems to be agricultural and labor interests. For instance, the Illinois act of July I, 1893, provided that "the provisions of this act shall not apply to agricultural products or live stock while in the hands of the producer or raiser." In Connolly vs. Union Sewer Pipe Co. 1 the court held that this exception clause tainted the whole act and rendered it void, since it denied equal rights as guaranteed by the Fourteenth Amendment. This decision by the United States Supreme Court really invalidates, for the same reason, the anti-trust legislation of Georgia, Indiana, Louisiana, Michigan, Mississippi, Montana, Nebraska, North Carolina, South Dakota, Tennessee, Texas, and Wisconsin.

Such has been the state legislation against the trust. It has been effective in its aims so far as it sought to destroy the old trustee agreement, but as to the prevention of the working out of the principle of combination, it has been equally ineffective. No sooner had the trust been dissolved than a new corporation was formed, which, exercising the right of free contract, pur- chased outright a controlling interest in the stock of the independent concerns and issued its own in return.

National legislation concerning combinations has been crys- tallized into three enactments :

1. "An Act to Protect Trade and Commerce against Unlawful Restraints and Monopolies." 2 This act provides:

Every contract, combination in any form or trust or otherwise, or con- spiracy, in restraint of trade or commerce among the several states, or with foreign nations, is hereby declared to be illegal.

2. "An Act to Reduce Taxation and Provide Revenue for the Government and for Other Purposes." 3 Beginning with para- graph 73, this act provides :

That every combination, conspiracy, trust, agreement, or .contract is 1 184 U. S., 540. a 26 Statutes at Large, 209. 3 2 8 Statutes at Large, 570.