Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-03-27
Attorney General Knox Sees
Scheme In Plans of the
Packing Men
STEEL TRUST PLAN
The Sherman and EIkins Laws Will
Be Brought Into Play to Prevent the
Beef Combine Seeking Shelter un-
der Methods Pursued by the Iron
Interests.

| Washington, March 27-The Depart
ment of justice is closely watching the
developments of the merger by the beef
packers in Chicago ard will be ready
to meet any new move made to cir
cumvent the injunction granted by
the department that merger of all the
packing plants will not affect the in
junction. That injunction must be dis
solved before the packers can ignore 1t.
1t is assumed that the packers will
appeal from the decision of Judge
Grosscup and have their case heard by
the supreme court of the United States.
Should they attempt to ignore the in
junction by merging all their proper
ties. the department will proceed
against them for contemp. of court and
this is a remedy which 1T is believed
will be even more effective than the in
junction itself, because there will be
severe penalties.
The lawyers of the department will
also meet the merger when effected,
with suit under the second section of
the Sherman act, which provides that
every person who shall monopolize or
attempt to monopoize any part of the
trade or commerce among the several
states or with foreign nations shall be
deemed guilty of mis- iemeanor and
on conviction shall be punished by a
fine not exceeding $1,000 or by impris-
onment not exceeding one year. or by
both said punishments, in the discretion
of the court.
The department believes it will Sc
cure a favorable opinion in its case
against the Northern railway merger
argued at ST. Louis last week. and, II
SO. it will proceed against the beef
merger on the same lines. using the
evidence against the packers for CONF
bining and conspiring. CT which they
were enjoined, as evidence that the
merger is only another attempt TO
evade the law. 1t will be contended that
the combination, which has been en-
Joined as unlawful, was the first step
in the merger and that u merger is
technical attempt to evade the decree
of the court which enjoined the pack
ers from making contracts and COM
binations in restraint Of trade.
1t is also contended by the attorneys
for the Department of Justice that the
beef packers can not organize on the
same plan as the steel trust and eNade
the ANTITRUST law. because the packers
have their agents scattered throughout
the country and they retain control
of their product while it is in transit
thereby making 1T amenable to laws for
the protection of interstate commerce.
The steel trust manufactures steel
and sells it at the mills. The beef pack
ers sell their product thru their own
agents in many states and are in con-
troll of these products as commerce.
In the theory of the law and by the
decision of the Supreme court, this
makes a great difference between the
two methods and to be on the same
ger would have to sell its product at
the packing houses to be shipped by
the purchasers.
The development Of the merger will
be followed closely by the Attorney
General and his assistant attorneys
and every effort made to prevent the
setting aside of the injunction granted
by Judge Grosscup or its evasion.
The new Elkins law will also be en-
ployed against the merger, and it is
believed that 1t will be most effective
in the way of preventing the granting
of preferential rates by the railroads.
The new law makes 1t illegal to secure
such preferential rates as we'll as to
grant them. 1t also prevents granting
passes, or free carriage, or any other |
favors whatever to favorite shippers.