Music Trade Review

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THE
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flUJIC TIRADE
V O L . L X I I . N o . 3 Published Every Saturday by Edward Lyman Bill at 373 Fourth Ave., New York, Jan. 15, 1916
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Attorney-General Gregory Defines Anti-Trust Laws.
Attitude of Federal Government Is Explained in Statement Given Out by Chamber of
Commerce—Business Will Not Be Harassed—Innocent Offenders Will Receive Leniency.
(Special to The Review.)
WASHINGTON, D. C , January 10.—A statement
of vast interest and importance to 'business men
generally throughout the country was made by At-
torney-General Gregory here last evening, through
the medium of the Chamber of Commerce of the
United States. The statement clearly outlined the
future policy of the Department of Justice in re-
gard to the enforcement of the anti-trust laws, and
contains the reassuring promise that when business
men have entered into a transaction in good faith,
believing their action to be entirely legal, should
this transaction be in violation of the statutes, there
will be no criminal prosecution, but the parties in-
terested will be given every opportunity to change
their plans in conformity with the laws governing
their specific case.
The statement was called forth by the uncertainty
which has existed in the minds of business men by
reason of the latest anti-trust legislation, both as to
the relationship to be established between the De-
partment of Justice and the new Federal Trade
Commission at points when their jurisdiction
seemed to overlap and also as to the probable atti-
tude of the Department of Justice in regard to
future anti-trust proceedings.
Mr. Gregory also outlines in detail his concep-
tion of the way in which the Department of Justice
and the Federal Trade Commission will co-operate,
which is a matter about which the business world
has been very uncertain ever since the commission
was created.
The Attorney-General seems to indicate that in
cases over which .both the Department and the Fed-
eral Trade Commission have jurisdiction, such as
those arising under the Clayton act, the Depart-
ment will await the conclusion of the commission's
proceedings regarding any matters in which the
commission's jurisdiction is first invoked.
Mr. Gregory's statements were made in reply to
questions put to him 'by a special committee of the
national chamber, headed by Henry A. Wheeler,
vice-president of the Union Trust Co., of Chicago.
The results of the committee's interview were is-
sued by the national chamber in the following
form:
"By way of introduction the Attorney-General
expressed a view that much of the misunderstand-
ing that exists in some quarters in relation to the
Sherman act is due to the fact that in the minds
of many it has come to be thought of as a statute
apart from the general body of laws—one by na-
ture, unlike other laws, especially as regards the
function and duty of those charged with its en-
forcement.
"This, he pointed out, is not the case at all. On
the contrary, .the Sherman act is enforced by the
Department of Justice in the same manner and ac-
cording to the same rules of policy as other stat-
utes—with the same care and with neither more
nor less rigor. Plain or intentional violations are
proceeded against vigorously, as under other
statutes.
"When, as with all statutes, doubtful cases arise
in which there was no intent to violate the law,
they are dealt with just as similar cases under other
statutes are dealt with; that is, with a view to en-
forcing strict compliance with the law, but without
unnecessarily stigmatizing or unnecessarily bur-
dening with litigation persons who have been hon-
estly mistaken as to the law and who stand ready
to rectify their mistake.
"Another cause of this misunderstanding is the
persistent misrepresentation to which the Sherman
act has been subjected by propagandists who are
opposed to the competitive principle and who seek
to undermine that principle by attempting to create
in the public mind misgivings and confusion, both
a.-, to the meaning and as to the manner of enforc-
ing the law embodying it.
"Four points were then taken up: First, the com-
plaint that the law is uncertain ; second, the policy
of the Department of Justice as regards the method
of enforcing the law in admi f tedly doubtful cases;
third, the means adopted by the Department to
guard against unjust prosecutions; fourth, the
policy of the Department in cases where it and the
Federal Trade Commission are both charged with
the enforcement of the law.
"Concerning the first point, the Attorney-General
stated that while concededly there is in the law of
restraint of trade an area of doubt, in the vast ma-
jority of cases it is not difficult to tell whether a
proposed transaction is or is not in violation of the
statute, and the doubt is certainly no greater than
that which is accepted as a matter of course in the
applications of other laws.
"Such doubt as there is, he stated, will be greatly
reduced by decisions in the shipping pool case, the
anthracite coal cases, the Harvester case, the Steel
case and the United Shoe Machinery case, which
are mow pending in the Supreme Court.
"As to enforcing the, law in cases where viola-
tions were found to exist through transactions
which were entered into in absolutely good faith,
the Attorney-General stated that it would not be
the policy of the Department to invoke extreme
penalties, but that the law would be enforced by a
civil proceeding in which the action involved
would be contested or a consent decree entered, ac-
cording as the defendants desire-d, or by a notice
to the parties of the Department's conclusion with
opportunity to abandon or modify the transaction
in accordance with the law.
"The choice as 'between these two procedures
would be determined by the circumstances of the
particular case. The Attorney-General claimed no
originality for this policy. On the contrary, he
stated that it was neither original nor peculiar to
the anti-trust law, but is the policy of the Depart-
ment and prosecuting authorities generally in the
enforcement of all laws.
"In this connection the attention of the Attorney-
General was called to Paragraph F of Section 6
of the Federal Trade Commission law, which
authorizes the commission 'upon application of the
Attorney-General to investigate and to make rec-
commendations for the readjustment of the busi-
ness of any corporation alleged to be violating the
anti-trust acts in order that the corporation may
thereafter maintain its organization, management
and conduct of business in accordance with law.'
"He was asked whether he could state what the
policy of the Department of Justice would be with
regard to invoking that provision. He replied that
v/hile he felt certain that this would prove to be a
most serviceable provision in solving particular
questions which often arise in the enforcement of
the anti-trust laws, it was as yet too early, in his
judgment, to attempt to particularize as to the
cases in which the Department of Justice should
call upon the Trade Commission for assistance un-
der this provision.
"Speaking generally, he stated he did not under-
stand that the provision contemplated that he
should refer to the commission the question
whether the law had been violated in a given case,
but rather questions of the feasibility, adequacy or
advisability of proposed remedies from a practical
standpoint.
"The discussion then turned to the measures
taken by the Department to guard against prosecu-
tions for which there is not just ground. On this
paint the Attorney-General stated that no proceed-
ing is ever instituted until after the most painstak-
ing and exhaustive examination of the facts which
it is possible to make.
"As a part of this inquiry the person or corpora-
tion against whom complaint is made, unless it has
already declared its attitude, is given full oppor-
tunity to submit its defense before any action is
taken.
"This is done, he pointed out, not only as a mat-
ter of justice to those against whom complaints
are made, but as a matter of prudence on the part
of the Department, for least of all has the Depart-
ment any interest in instituting a suit which should
subsequently turn out to be without a proper foun-
dation of guilt.
"As to its policy in cases where both the Depart-
ment and the Federal Trade Commission are
charged with the enforcement of the law, as under
the Clayiton act, the Attomey^General stated that
the Department would in general, he guided by the
principle which governs the Federal and State
courts in cases where they have concurrent juris-
diction.
.
.
"That is to say, in any such case if the Federal
Trade Commission were the first to exercise juris-
diction, the Department of Justice would await the
conclusion of the commission's proceedings before
taking any action unless- special circumstances
should-dictate a.different course."
The statement of the Attorney-General seems to
mark the dawn of an era of co-operation between
the Government and our great industries which
will'be of great benefit not only to these industries,
but to the Government itself, and the public at
large as well.