The Washington herald., 1908-04-28

of the great Iaw-defying and law-eYading
corporations are over. and that from this
time on the mighty organizations OF cap
ital necessary for the transaction of bus
mess under modern conditions, while en-
COuraged so long as they act honestly
and in the interest Of the general public,
are to be subjected to careful supervision
and regulation of a kind so effective as
10 insure their acting in the interest OF
the people as a whole
Allegations are often made 20 the effect
that there is no real need for these laws
looking TO the more effective control Of
the great corporations, upon the ground
that they viii do their work well without
such control. I call your attention 10 the
accompanying copy Of a report just sub
mltted by Mr.. Nathan Matthews, chair
man of the finance commission. 70 the
mayor and city council of Boston. Telat-
ing to certain evil practices Of various
corporations which have been bidders
for furnishing TO the city iron and steel.
This report shows that there have been
extensive combinations formed among
the various corporations which have busi-
ness with the city of Boston. including.
for instance, a carefully planned cognbi-
nation embracing practically all the
firms and corporations engaged in struc-
tural steel work in New England This
combination included substantially all the
local concerns. and many Of the largest
corporations in the United States, engag-
ed in manufacturing or furnishing
structural steel for use IN any part of
New England; it affected the States. the
cities and towns, the railroads and street
railways. and generally all persons hav-
ing occasion TO use iron or steel for any
purpose In that section OF the country
AS regards the city OF Boston the COM
bination resulted In parcelng out the
work by collusive bids. plainly dishonest.
and supported by false affirmations. IN
its conclusion. the commission recon-
mends as follows;
Comment on the moral meaning a these methods
ard Transactions would seem superau0us. but as
they were defended az the public hearings Il the
commission and asserted % BE- common and entirely
proper incidents u business life and a. these rrac-
uces have been finely rssorted 20 by some q the
largest industrial corporations that the world has
eFer known. the commission deems it proper to
record its own opinion.
The commission dislikes 20 believe that these
practices are. as alleged established by the general
clstom of The Business community: and tbls de
fense itself i unehalenged amounts 10 crave
accusation against the honesty Of present business
methods.
To answer an invitation f0r public or friyate
work by sending in what purports 70 be genuine
bids. but what IN reality are c3usive figures pur-
posely made higher than the bid which is known
VIII be submitted by one q the supposed c1mpcti-
tors Is az act q plain dishonesty.
To support thesa Misrepresentation by false
ahrmations in writing that the bids are submitted
IN good faith and without fraud oollusion or cor
neetion with sny other bidder. is positive and
deliberate fraud: the successful bidder f the CON
petition IS guilty q obtaining money by false rre-
lenses and the others have made themselves parties
70 conspiracy clearly unlawful az the common iav
Where, as in the case 4 the Boston agreement
a number of the most important manufacturers and
dealers IN structural steel in this country including
the American Bridge Company. one cf the con-
sutuent membeU q the United States Steel Cor
poraton, have combined together for the rurpse Il
raising Prices BY means Of cllnsiye bids and false
representations their conduct Is not only rerugnsnt
70 common honesty kut Is plainly obnoxious 10 the
Federal statue known as the Sherman anti trlst law
The commission believes that an example should
ne made q these men, and that the members Of
the Boston agreement, at least all those who.
IN October and November. 1906. entered in the
fraudulent competitions for the Cove street drsv-
span and the Brookiine Street Bridge should De
Brought before a Federal grand jury FOR violation
OF the aCt Il Congress Of July 2 1890 The three
years limitation FOR participation in these trans
actions has not yet elapsed. and the evidence Oh
'aiaed by the commission Is SO complete that there
should be 10 difficulty in the governments securing
a conviction in this case