Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1908-07-23
DEFIEs NATURAL LAW.
Steel Trust Goes to the Linnit-Oniy
Hope Of the People In Competition.


On May p meeting OF leading
steel manufacturers was held in New
York for the avowed purpose of
agreeing on the prices of steel prod
ucts. Such meetings had been held
before and until recently were sue
cessful in keeping prices up to the
figures reached before the panic last
October in spite of the crippling eff
feet on industries using steel material
and the enormous reduction in the de-
mand for steel products.
The statement is made. on the au-
thority of ex-Secretary Shaw, that the
United States Steel corporation re-
ceived from the president a promise of
immunity from prosecution before il
forced combination with one of It's
chief competitors, the Tennessee Coal,
Iron and Railroad company. The ques.
ton arises whether it has similar i'm
munity from prosecution for its viola
ton of the antitrust act by these meet
tngs in New York.
The organization of the Steel corpora
ton was VIGOROUSLY the creation of
trust and an Illegal restraint of
trade, as has been pointed out by rec
ognized lega! authorities. See Wilgus'
work on 1.-THE United States Steel Cor
poration," chapter 4. The trust now
publicly conspires with its remaining
competitors absolutely to control do
mestic commerce In steel goods, and
yet no federal arm is raised to vindi-
cate the law and safeguard the peo-
pies rights.
Perhaps 1t should not excite wonder
that the trust, thus encouraged in its
defiance of statute law, should have as
sumed to nullify the law of supply and
demand. law as well fixed In the ma
ture of things as the law of gravita-
ton. The new economic law estab-
lished by the fat of the steel mag
mates, as stated by Mr. Gary, reads
thus: 1.-THE mere fact that the demand
Justify an increase in price, nor does
the fact that the demand is less than
the supply furnish an argument for
lowering the price. In neither case
would the quantity bought and sold be
more or less" Thus they sought to
excuse themselves for starving indus
try In America by maintaining abnor-
mally high charges for materials in
dustry must use, while they sold to-
foreigners at a discount estimated at
from 20 to 80 per cent.
Very recently the prices of steel prod
ucts, except steel rails, have been
slightly reduced. This is hailed as a
vindication Of economic law against
the arbitrary DEGREES of the trust, but
the practical vindication is by no
means complete or decisive. The slight
concession was made grudglngly.
OF course it would be incorrect to as
sumo that a natural law can be re-
pealed. The trust has merely sup
pressed competition and has thus
brought into operation another natural
law, the law of monopoly. The peo-
pie cannot enjoy the practical benefit
of the law of supply and demand If
they allow monopolies to flourish.
Protected from foreign competition
by the high tariff wall, allowed by fed
era1 immunity or inactivity Illegally
to suppress competition and intrenched
in it's monopoly by control Of the best
mineral deposits of iron and fuel, the
trust. we may be sure, will soon make
its control absolute over the iron and
steel industries. If we would have
relief, the first step Is to remove the
tariff embargo on the importation of
iron and steel, the protection which
exists only to encourage combination
and promote extortion. The next step
Is to withdraw the mantle of "immu-
nifty" If one exists, and make the trust
sensible of the laws against restraint
Of trade JESSE T. ORION.