- fA '.". I'MTWfe jp;Kt
The Commoner
;VOL;:;14,-NO. 11
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The Federal Antitrust Bill
Ap;Act to Supplement Existing Laws Against Unlawful Restraints and Monop
olies, and for Other Purposes
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Bo it onactorl by tho Sonato and House of
Representatives of tho United States of America
in Congress assembled, That '-'antitrust laws,"
as used heroin, includes the act entitled "An act
to- protect trado and commerce against unlawful
restraints and monopolies," approved July sec
ond, eighteen hundred and ninety; sections seventy-three
to Boventy-soven, inclusive, of an act
entitled "An act to reduce taxation, to provido
rovonuo for tho government and tor other pur
poses," of August twenty-seventh, eighteen
hundred and ninoty-fourf an act entitled "An
act to amend sections seventy-three and seventy
six of. tho act of August twenty-seventh, eighteen
hundred and ninoty-four entitled "-An act. to
reduco taxation, to provido revenue for tho gov
ernment, and for- other purposes," approved
February twelfth, nineteen hundred and thir
teen; .and also this act.
"Cdmmorco,'' as used heroin, means trade , or
commerce among the several states arid with
foreign nations, or between, the District of Co
lumbia or any torritoryof the United States and
any stato, territdry, or foreign nation, or be
tween any Insular possessions or other places
under tho jurisdiction of the United States, or
between any such possession or place and
any state or territory of the United States
or" the District of Columbia or any for
eign nation, or within the Djst'rict of Columbia
6r' any territory or any insular possession or
other place under the jurisdiction of the United
States:
Provided, That nothing in this act contained
shall apply to the Philippine Islands.
Tho word "person" or "'persons' wherever
used In this act shall be deemed to include cor-
pornuons ana associations existing under or
authorized by the laws of either
. States.,, the .laws, of any of, the territorl
iuwa.yi iuy tjuiiu, or. uie iawB .91 .
country.
.,. , ,Sec.( $, That it shall be unlawful., for any r
. person- engaged in commerce, in the course of
. such, commerce, either directly or indirectly, to '
discriminate in price between different purchas
ers of commodities, which commodities are sold
, for use, consumption, or .resale within the
United States or. any territory thereof or the
District of Columbia or .any insular possession
pr other place under tho jurisdiction of tho
United States, where- the effect of such discrim
ination may be tp substantially lessen compe
tition or tend to create a monopoly in any line
of commerce:
; Provided, That nothing herein contained shall
prevent discrimination in price between pur
chasers of commodities on account of differences
.In tho grade, quality, or quantity of the com
modity sold, or that makes only due allowance
for difference in the cost of selling or transpor
tation, or discrimination in price in the same
or different communities made in good faith to
meet competition:
And provided further, That nothing herein
contained shall prevent persons bngaged in sell
ing goods, wares, or merchandise in commerce
from selecting their own customers in bbna fide
transactions and not In restraint of trade.
Sec. 3. That it' shall be unlawful for any
person engaged in commerce in the coursq of
such commerce, to lease or make a sale pr con
tract tor salo of goods, wares, merchandise, ma
chinery, supplies or other commodities, wheth
er patented or unpatented, for use, consumption
or resale within the United States or any terri
tory thereof or the District of Columbia or any
insular possession or other place under the juris
diction of the United States, or fix a price
charged therefor, or discount' from or rebate
upon, Buch price, on the 'condition,, agreement or
understanding that the lessee or purchaser there
of, shall not use or deal in the goods, wares,
merchandise, machinery, supplies or other com
modities of a competitor or, competitors of the
lessor Pr seller, where the effects of such lease,
gale,' or contract for sale or such condition,
agreement or understanding may be to substan
tially lesson competition or tend to create a
monopoly in any lino of commerce.
Sec. 4.' That any person who shall bo in
jured In his business dr property by reason of
any thing forbidden in the .antitrust laws may
gue therefor in any district court of the United
THE ANTITRUST liAW
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Herewith is the full text of the new fed-
er'al antitrust law,' known as the Clayton
antitrust bill,' which became effective on
its , approyal by President Wilson on
October 15.
The bill was originally' introduced by
the house of representatives and. passed .
that body June 5, 1914. Passed the sen-
ate with amendments Septomber 2, 1914,
and went to a conference committee of
b6th houses. The conference report was
adopted by the house,, 244 for, to .54
against. Tho senate adopted the confer-
ence report by a vote of 35 'for and- 24
against. The'bill, -as hereto": published,
is the result, of the conference agreement. '
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States in the district In which tho defendant
resides or is found or has 'an-agent, without re
spect, to the amount in controversy, and "shall
recover threefold the damages by him sustained,
and the cost of suit, including a reasonable at
torney's fee . . . ; .; .
Sec. 6.- That a 'final judgment' or decree here
after rendered in any criminal 'prosecution1 or in
,.,.. ...!! .... .. . . - . i-
i TV .i i 21.11 V HlllI. 111'. 1II'I1I!MMI lllir 1T1 . DHlTirV nilAll rrlt I.. .hv4 r . X
. uie united , . , , .r jz : ; "vivvvj "'""bui- .w .. ,,m.,aaeuc or, impair, any rignt .neretoiore
es, the ' jn -oenaii oi tne, united state's under -the antl- ;;cquTrjfid: , PrpYlie4, TlUt'upthimr lu.this.
n . L.1 nri. iiwn in .nil miimi'i r inr 11 n at at, nn. . . i- a 11 - t i . .
nnv rnrn pn - - - - .--.. ,. u uoiouuttui nut. viu- hmmii rR nn nr nnTioiniPH rr niir.nnni7n..ni
" , lated.Bald laws
engaged in commerce where tho effect of suh
'acquisition, or the use of such Btock by the
voting or granting of proxies or otherwise, may
be to substantially lessen . competition between
such corporations, or any of them, whose stock
or other share capital Is so acquired, or to re
strain such commerce in any section or commun
ity, or tend, to create a monopoly of any lino
of commerce.
This section shall not apply to corporations
purchasing such stock solely for investment and
not Using the same by voting or otherwise to
bring about, or in attempting to bring about, the
substantial lessening of competition. Nor shall
anything contained in this section prevent a
corporation1 engaged in commerce frpm causing
the formation of subsidiary corporations for the
actual carrying on of 'their immediate lawful
business, in" tile natural and legitimate branches
or- extensions' thereef , or f rbm owning and hold
ing all or a part of the Btock of such subsidiary
corporations; when the effect of such formation
is not to substantially lessen competition.
Nor shall anything herein contained be con
strued to prohibit any common' carrier subject
to the law's to regulate commerce from aiding in
the construction of branches or short lines so
located as to become leeders to the main line
of the company so aiding in such construction or
from" acquiring or owning all or any part of the
'stPck'of such branch lines, nor td prevent any
such common carrier from 'acquiring and own
' ing all or any part of the stock of a branch or
short line constructed by an independent Com
' pany where there is; no substantial competition
between the company owning the branch line so
constructed and the company' Owning the main
line acquiring the property or" att interest there
in, npr to prevent such common carrier froVn bx
- tending any of its lines through the niediuhiof
the" acquisition ,of stock or 'otherwise 'of any
other such common carrier t tohere there is:no
substantial competitiPn bet'toeen the' company
extending its lines and the Company whose stock,
property, or an interest therein1 is so4 acquired.
-.Nothing contained in thjLs section shall be held
lega.uy
section
malm
shall be prima facie evtrlnncn tTLnwWl4nnvfMTi,Kiir'oTfV;i. ii,.'iKit "'nitt
brpughj by any other party against such defend- ,Mners6n'from the nenal tvs$zciiAMXMrQhxz
civil remedies, therein provided,.' .'..'' ' .
ant under said .laws as to all matters respecting
which said judgment or decree would be: an es
toppel as between the parties, thereto. -Provided,
That, this section shall not apply to consent. judg
ments or decrees entered before any testimony
has been taken: Provided further, That this
section shall not apply to. consent judgments or
decrees rendered In criminal proceedings or
suits in equity now pending In which the taking
of testimony has been commenced but has not
been concluded, provided such judgments or de
crees, are rendered before any further testimony
ia taken. J
Whenever any suit or proceeding in equity
or criminal prosecution is instituted by. the
United, S.tates to prevent, restrain, or punish
violations of any of the untitrust laws the run
ning o the statute of limitations in respect of
each, and e.very private, right of action arising
under said laws and based in whole or in part on
any matter complained of in said Buit or pro
ceeding shall be suspended during the pendencv
thereof. .
Sec. G, That the labor of a human beinc is
not a commodity or article of commerce. Noth
ing po.ntalned.in the. antitrust laws shall be con
strued, to forbid the existence and operation of
labor, agricultural, or horticultural organiza
tions, instituted for the purppses of mutual heln
and not having capital stock or conducted for
profit, or .to forbid or restrain imUvWiuoi r "
bers of such organizations, from, lawfully carry
v.Sec. 8. That from and after two years from
the? date of the approval of this act no person
shall at the same time be a director or other
officer or. employee of more than one bank, bank
ing association or . trust1 company, ' org-anied
or operating under the laws of the United' States,
either of which was deposits, capital, surplus,
and undivided profits aggregating more ' than
$5,000,000; and no private banker or person who
is a director in any bank or1 trust company, or
ganized and operating under the laws of a state,
having deposits, ..capital surplus, and undivided
profits aggregating more than $5,000,000, shall
be eligible to be a director 5in. 'any bank or bank
ing association organized Pr operating under' the
laws of the United States The eligibility of a
director, officer, or employee under the fore
going provisions shall be determined by the av
erage amount of deposits, capital, surplus, and
undivided profits as shoton in the official state
ments of such bankj bartking association, or
trust company filed as provided by law during
the fiscal year next preceding tho date set for
the annual election of directors, and when a di
rector, officer, or employee has been elected or
selected in accordance with the provisions of
this act It shall be lawful for him to continue
as such for one year thereafter under said elec
tion or employment. . .
No bank, banking association or- trust com-
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0V,i, .K-r-i .?" aiA gecis ei-eof;.nor shall . pany organized or operating under the laws of
ouvu uihuuiZiULiuim. ill" rnn niomhn 4.1. - a it. 1 ttu 1 a. . . . r .
l,Qi,i AU-MBt "T;;,..,,,1 TUWB. "iereoi, De
held or nonfitrnofl fn Via m'nni ..i.i,,
v , . . ---- .v " iio(jtti umuinations or
SStr reStratat f tradP'
Sec. 7i That no corporation engaged in com
merce shall acquire, direptly or Indirectly, the
whole ,or any part of the stock or other share
capital of another Corporation engaged also in
commerce where, tho effect .of such acquisition
may be to substantially lessen competition be
tween the corporation whose stock is so acquired
and the corporation making ftp acquisition, or
tp retrain such commerce, in. any section or com
munity, or tehd to create a monopoly of anv
lino of commerce. . ' . l uuy
'(arBhM'oirDv' of ffitSL in" tm.Pany orgailize'd under'' the laws of
Kffcf&hJirJl?iS ?J ia.ny p.arV'of tne stock, or , the United States or vr,Vnt whWrn 'fi, entire
wfc-v. BMWto WJHWI 01 wo or moro corporations capital stock of' one Is Wiie'd by" Stockholders in
the United States, in any cltv'or iticoruoraTed
town or village of more than two hundred thou
sand inhabitants, as slipwn by the last preced
. Ing decennial census of' .the United States, .shall
hayp as. a director or other officer' or employee
any private banker or ahy directpr or other offi
cer or employee, of any other' bank," banking as
sociation or trust company legated in the same
place: Provided, Thai; npthjng in this section
shall apply tp mutual savings banks not having
a capital stock represented by shares: Provided
further, That a director or other officer, or em
ployee of such bank, tanking association, or
trust company may be a director or other officer
. ,.or employee of hot more, 'than ne other bank
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