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or more, provided that the business carried on by such corporations be of such a nature "that the elimination of competition by agreement between them would constitute a violation" of the anti-trust laws.
(8) The same procedure created for the enforcement of the unfair-competition provision of the Trade Commission Act. is prescribed for the enforcement of the above provisions of the Clayton Act, it being clearly indicated that Congress looks to the Trade Commission to serve the same purpose in connection with industrial combinations as does the Interstate Commerce Commission in connection with common carriers, and the Federal Reserve Board in connection with banks.
(9) Violations of any of the penal provisions of the antitrust acts by a corporation is declared to be also violation by the individual directors, officers or agents who have authorized, ordered or done the acts constituting such violation, rendering them liable to the familiar penalties of the Sherman Act.
It is too early to judge of the extent to which this enumeration of acts which henceforth shall be unlawful in the Clayton Act has changed the existing law. It will be observed that in specifying offences great care has been taken to exclude acts of the same kind which are free from the objection of tending to restrain trade or create monopoly. It thus still rests with the courts, aided by the Trade Commission, to determine when price discriminations, exclusive contracts, interlocking directorates, etc., are in violation of the anti-trust acts. That such acts were already regarded under certain circumstances as involving violation of the Sherman Law is well known to every student of the decisions. The legislation has, therefore, merely enumerated as unlawful certain lines of conduct which, even before the act was passed, had come to be viewed as possible evidences of a criminal combination. Such enumeration serves at least one useful purpose. It makes clearer the obligation resting on business men to avoid entanglements which may lead them into violations of the law. That they may not disregard this obligation, the expert services of the Trade Commission are at the same time provided. The net results should
be fuller compliance with the law and less occasion for prosecutions under it.
1-The Interstate Commerce Clause, Pierce, F., Federal Usurpation, 369-305.
2-The Regulation of Railroad Rates, Knapp, M. A., Proceedings of the American Political Science Association, I, 199-206.
3-Federal Usurpation, Williams, J. S., Annals of the American Academy of Political and Social Science, XXXII, 185-211.
4-Governmental Interference with Industrial Combinations, Whitney, E. B., Proceedings of the American Political Science Association, I. 184-99.
95. THE CITY THE BATTLE-GROUND OF DEMOCRACY.
Two underlying causes of corrupt elections and misgovernment, the political boss and the special privilege seeker, are thus discussed by Mr. Horace E. Deming:
The political forces that resist every advance toward the attainment of government accountable to the people governed and make for the establishment of a government in the interest of a privileged few are nowhere so active or so powerful as in the city. The city itself creates the economic conditions that give these forces full play. The urgent needs of the city's community-life for water, transportation, light, telephonic communication, and similar communal services can only be met through governmental action. The men engaged in supplying these services are necessarily in the most intimate and constant contact with the city government, while the business interests and occupations of the vast majority of men bring them but rarely if at all into conscious relation with the government of the city in which they live.
On the one hand, the satisfaction of urgent communityneeds has created a class of special businesses which are made profitable by influencing governmental action; on the other, is the great mass of the citizens to whom any special effort to reach or influence a city official involves business loss. The enjoyers of special privileges have been constantly watchful of the conduct of city government and constantly active in securing the election and appointment of public officials favorable to their business plans. The general body of the citizens
secure under the constitution in their personal and property rights and absorbed in business callings and occupations that neither need special assistance nor invite any interference from the city government, have paid, at most, only so much attention to it as voting for their regular party candidates on election day might require and, perhaps, at times contributing to their party's treasury.
The exploiters of the need for transit, light, and other public services have found in each city a natural ally in every man who desired some selfish personal advantage from its government. The domination of the state legislature over municipal affairs brings to the state capital the franchise seekers from every city, there to work in congenial and unwholesome fellowship with every other special interest in quest of legislative largesses. Neither is the hunter of governmental bounty unknown in Washington. His insidious influence has been felt in every department of our government. The same cause, hunger for the enormously valuable special privileges at the disposal of government under modern economic conditions, has been active in nation, state, and city.
The privilege-seeker has pervaded our political life. For his own profit he has wilfully befouled the sources of political power. Politics, which should offer a career inspiring to the noblest thoughts and calling for the most patriotic efforts of which man is capable, he has, so far as he could, transformed into a series of sordid transactions between those who buy and those who sell governmental action. His success has depended upon hiding the methods by which he has gained his ends. All the forms through which the voters are accustomed to exercise their rights have been strictly observed. Untroubled by conscientious scruples, consistently non-partisan, he has welcomed the support of every party and been prompt to reward the aid of any political manager. Step by step he gained control of the party machinery. His fellow citizens have been in profound ignorance that he named all the candidates among whom they made their futile choice on election day.
For a long time our real government had not been the one described in constitution or statute; our electoral methods had long ceased to furnish a genuine opportunity for the expression of the popular will; the actual government had passed into the control of an elaborate feudal system with its lords and overlords, each with his retinue of followers and dependents, all supported at the expense of the public; yet the people were quite unaware that the ancient methods upon which they relied in order to have an effective participation in the conduct of the government and to secure public officials responsible to them and actively concerned to protect the common interest and promote the common good were rapidly becoming mere shams.
In every department of human affairs requiring the exhibition of skill, the expert, sooner or later, inevitably becomes prominent. There was an insistent demand for the expert of every grade from the highest to the lowest in an undertaking involving so much knowledge of human nature, such mastery of detail, so much persistence of effort, and such adroitness as the conduct of government by purchase under the guise of the government by the people. In response to this demand came the "Boss," the expert who attended to the infinite details and complications of party management and organization and supplied the public officials-and thereby the kind of government-the privilege-seeker desired.
The boss was a distinct advantage to the class that throve by government favors. His real occupation was unknown to the people, and if at first they did not welcome his appearance they thought him nevertheless the natural and perfectly legitimate outcome of their accustomed political methods, a leader whom they could displace when he lost their approval. They did not realize his ominous significance. Gradually it began to dawn upon them that they could neither select nor elect him; that he was not a person, but a system. The individual might disappear or be displaced, but the boss always remained. Not until his sinister figure was appearing in city after city and state after state and even in the United States