s independent
companies operated, and rebates given and taken.

In the case of the American Tobacco Company, there were more than one
hundred formerly competing companies united under the control of a
single organization and the market in nearly all tobacco products was
monopolized. This domination was secured "by methods devised in order to
monopolize the trade by driving competitors out of business."

In each case the court found the defendants guilty on the grounds that
the agreements and the conduct of the defendants indicated a purpose to
destroy competitors and monopolize trade in certain articles. The
desired result was accomplished by wrongful means which injured the
public as well as the competitors.

The facts in neither case required the consideration of the question as
to whether the Sherman act prohibited every unification of formerly
competing properties and every restraint of trade, reasonable or
unreasonable but, owing to the uncertainty of the public concerning the
meaning of the law, the court stated definitely the meaning and scope of
the act. From appearances the Supreme Court has practically amended the
Sherman act by limiting its application to "unreasonable" restraints of
trade. The significance of the decisions lies here rather than in the
fact that both companies were compelled to dissolve. The best legal
authorities believe that the new interpretation of "reasonableness" and
"unreasonableness" of restraint of trade has increased rather than
decreased the effectiveness of the law, inasmuch as the meaning has
always been obscure. The new policy is a notification to combinations of
capital that to exist without prosecution they must not resort to any
unfair, oppressive, or illegal methods to control competition or crush
competitors.

CHAPTER XIII

PRESIDENT ROOSEVELT'S SECOND TERM--CONTINUED

[1907]

While President Roosevelt advocated peace, he believed that the best
means to preserve peace was suitable preparation for war. In his message
to Congress, 1904, he said; "There is no more patriotic duty before us
as a people than to keep the navy adequate to the needs of this
country's position. Our voice is now potent for peace, and is so potent
because we are not afraid of war. But our protestations would neither
receive nor deserve the slightest attention if we were impotent to make
them good." At all times he urged a larger and more efficient navy. For
years, before he became Assistan