The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-05-04
INTERESTING ANTITRUST SUIT
fRY C. A. EDWARDS !

| Washington, April 2s.--(Staff Specially
Solicitor General Richards has presented
the argument of the government in the
Addyston pipe case, and submitted a
lengthy printed brief 1t was apparent
that the solicitor general made an excep-
/ tionally strong exposition Of the bearing
of the antitrust law upon this particular
combination OF industrial interests for
John w. Warrington OF Cincinnati, on the
part Of the Addyston company, asked for
ten to twenty days in which to file reply
to the governments brief. Three days is
the usual time. and, as the court is rear
ing It's summer vacation, It was impossible
to defer the case so long as was desired
by Mr.. Warrington. He was given six
Gays in which to fle roply.
The Addyston case Is the first suit com
ing before the supreme court In which is
cmhodied all Of Tho essential features M
test Of the operation of the antitrust law
in respect to Industrial trusts. The suit
is brought against the six constituent COM
although it Is commonly called the hddys-
ton Pipe and Steel company case, as that
company is the first on the list Of names on
the petition. The combination was formed
in December. 1894, for the purpose, as stat
ed in the petition of the government, OF
regulating tho output and prices of cast
iron pipe In thirty-sIx States sought to be
ccntic He'd by the trust.
Tho companies entering into the combin-
alton were; The Addyston Pipe ard Steel
company of Cincinnati, Dennis Long IL
Co, Louisville Ky; Howard Harrison Iron
con paLy Bessemer. Ala; Anniston Pipe
and Foundry company, Admission, Ala
South Pittsburg Pipe works, South Pitts
burg, Tenn. and the Chattanooga Foun-
dry and Pipe works Chattanooga Tenn,
Certain reserve cities in the territory
sought to be controlled were set apart for
cash of the companies Interested and IN
these cities no other company 10 the COM
blne was permitted to sell pipa, Then the
territory was divided among the constitu-
ent companies, aud the company securing a
contract was required to pay into the gem
eral treasury certain bonus, ranging from
81 TO 81 ton on each ton sold
~
To Illustrate the reserve city plans ope-
ration, it may he explained that to the
Addyston company was assigned tine cities
OF Covingion, Newport aud Cincinnati.
When any of those cities wanted to pur-
chase pipe the Addyston company was no
tilted, and 1t fxed the price Mt which It.
would furnish the pipe and they wsre re-
auired to overbid so The Addyston COM
pany would get the contract, The bonus
paid by the constituent companies for sales
in territory outside the reserved cities.
and covered into the general treasury sub
sequently was distributed among the cen.
sttuent companies
This did not always keep up the price
satisfactorily, and the combine adopted
what was called the auction pool plan. BY
this method representatives OF each If the
six constituent companies met and fixed
a Price for which The pire should be sold.
Then each company oifered bonus above
that price. which it was willing 70 nay for
the privilege Of furnishing the pine for the
rriee fixed. The highest bidder 20, the
| right to secure the contract, at the figure
originally fixed, and all the other com
psuies were required 70 overhid as be.
tore, Then the bonus was distributed.
! The irst knowledge of the trust came IN
the government through a stenosrapher
FAMED Mcclure, who had made copies of
letters. kilograms, contracts, etc in ros-
session OF the constituent company. lie
offered his information to some of the
cities which had bought uipe OF the trust
as basis for suit against the combine
for recovery on the part OF the city, he
cause of overehsrges.
in his argument Solicitor Genera, Rich
arcs asserted that the companies of ,ba
trust have In some cases made repaymentz
to cities TO prevent su,h suits, and thus
the information possessed by the steno.
grapher became valueless to him. In the
end he turned it up 20 The government
ana the department OF justice ordered the
'fust prosecuted In the United States cir
cut court for the Eastern district OF Ten
hessee' judge Clark dismissed the case
IN a hearing upon Its merits. bat his ipdy.
ment was promptly reversed by the cir
cut court OF appeals, Judge Taft ~ Gin. |
e'nnati handing down the opinion Tho
combine thereupon brought the case to the
supreme court;
one OF the most important features Of
the brief submitted by Solicitor General
Richards is the principle embodied in this
extract: " 'A'o
,.., me TACT that goods which are manu-.
'as'uisa may subsequently be sold and