844 THE FEDERATIONS AND THE UNION [PART Iv
relating to trade and commerce within the meaning of
8. 101 of the Constitution, and need not therefore be entrusted
to the inter-state commission.
But on the main point at issue the Court was divided.
S. 5 of the Act penalized any foreign corporation or trading
or financial corporation formed within the Commonwealth
which made any contract or engaged in any combination,
either to restrain trade or commerce within the Commonwealth
to the detriment of the public, or to destroy or injure
by means of unfair competition any Australian industry,
the preservation of which was advantageous to the Commonwealth.
8. 8 penalized any similar corporation which
monopolized or attempted to monopolize, or conspired or
combined to monopolize any part of the trade or commerce
within the Commonwealth with intention to control to the
detriment of the public the supply or price of any service,
merchandise, or commodity.
The question which thus arose was whether these provisions
were within the power to make laws with respect to
foreign corporations and trading or financial corporations
formed within the limits of the Commonwealth. The whole of
the Court held that the section did not confer on the Commonwealth
Parliament power to create corporations, but the
power was limited to legislation as to foreign corporations
and corporations created by state law. But they were divided
as to what extent of legislation was permitted. The view of
Griffith C.J.! and Barton J.2 was that the section in question
of the Constitution conferred upon the Commonwealth Parliament
power to prohibit foreign corporations and trading and
financial corporations formed under state laws from engaging
in trade and commerce within a state, as distinguished from
trade and commerce between states or with foreign countries,
or to impose conditions subject to which they may engage
in such trade and commerce, but did not confer upon the
Commonwealth Parliament power to control the operations
of such corporations which lawfully engage in such trade
and commerce.
* (1907) 8 C. L. R. 330, at pp. 345 seq. 3 1Ibid., at pp. 360 seq.