The following edited passage is taken from Popular Law-Making by Frederic Jesup Stimson on early labour legislation and laws against trusts.
Far the most important phrase to us found in the Statute of Westminster I, save perhaps that common right should be done to rich and poor, is to be found in
5 this sentence: “Excessive toll, contrary to the common custom of the realm,” is forbidden. The statute applies only to market towns, but the principle established there would naturally go
10 elsewhere, and indeed most towns where there was any trade were, in those days, market towns. Every word is noticeable: “Excessive toll”—extortion in rates. As this statute passed into the common law
15 of England and hence our own, it has probably always been law in America except, possibly, in those few States which expressly repealed the whole common law and those where civil law
20 prevailed.
It was therefore equally unnecessary to adopt new statutes providing against extortion or discrimination, for the last part of the phrase “contrary to the
25 common custom of the realm” means discrimination. But this is one of the numerous cases where our legislatures, if not our bar and bench, erred through simple historical ignorance. They had
30 forgotten this law, or, more charitably, they may have thought it necessary to remind the people of it. There has been a recent agitation in this country with the object of compelling great public-service
35 companies, such as electric lighting or gas companies, to make the same rates to consumers, large or small. This also was very possibly the common law, and required no new statutes; there are cases
40 reported as far back as the fourteenth and fifteenth centuries where, for instance, a ferryman was punished for charging less for the ferriage of a large drove of sheep
or cattle than for a smaller number,
45 “contrary to the common custom of the realm.” Nine years before this statute is the Assize of Bread, attempting to fix the price of bread according to the cost of wheat, but notable to us as containing
50 both the first pure-food statute and the first statute against “forestalling.”
Now forestalling, regrating, and engrossing are the early English phrases for most of the unlawful or unmoral
55 actions which we ascribe to the modern trust. In fact, there is hardly one legal injury which a trust is said to commit in these days which cannot be ranked under those three heads, or that of monopoly or
60 that of restraint of trade.
“Forestalling” is the buying up provisions on the way to a market with intent to sell at a higher price; and the doctrine applied primarily to provisions, that is to say,
65 necessaries of life. Precisely the same thing exists to-day, only we term it the buying of futures, or the attempt to create a corner. We shall find that the buying of futures, that is to say, of crops not yet
70 grown or outputs not yet created, is still obnoxious to many of our legislatures to- day, and has been forbidden, or made criminal, in many States. “Regrating” is defined in some of the early dictionaries
75 as speculating in provisions; the offence of buying provisions at a market for the purpose of reselling them within four miles of the place. The careful regulation of markets and market towns that existed
80 in early times in England would not suffer some rich capitalist to go in and buy all that was offered for sale with intent of selling it to the same neighborhood at a higher price. Hatto of
85 the Rhine, you may remember, paid with his life for this offence. The prejudice against this sort of thing has by no means ended to-day. We have legislation against speculation in theatre tickets, as well as in
90 cotton or grain. “Engrossing” is really the result of a successful forestalling, with or without regrating; that is to say, it is a
complete “corner of the market”; from it our word “grocer” is derived. Such
95 corners, if completely successful, would have the public at their mercy; luckily they rarely
are; the difficulty, in fact, begins when you begin to regrate. But in artificial commodities it is easier; so in
100 the Northern Pacific corner, a nearly perfect engrossing; the shares of stock went to a
thousand dollars, and might have gone higher but for the voluntary interference of great financiers. Leiter’s
105 Chicago corner in wheat, Sully’s corner in cotton, were almost perfect examples of
engrossing, but failed when the regrating began. All these tend to monopoly, and act, of course, in restraint of trade; the
110 broader meanings of these two latter more important principles we leave for later
discussion.