New-York tribune., 1911-12-14
SUPPORTS SHERMAN LAW
Victor MoraWetz Treats 1.-The
Trust Problem" at Y. NJ. c. A.
APPROVES COURT DECISIONS
Lawyer Who Helped Form Steel
Corporation Thinks Commis-
sion Would Be Excellent.

Victor Morawetz. one OF the counsel who
helped form the United states Steel Cor
poration. treated "rhe Trust Problem last
night before the Finance Forum ot the
West Side Young Mems Christian Associa-
tion. Mr. Moravetz Is a stanch supporter
of the Sherman law and OF its recent in
depreciation by the Supreme Court, but he
is also firmly convinced that the United
States Steel Corporation is not A violater
OF that law on this point he said:
Tho decision in the case of the United
States Steel Corporation now pending IS
likely 10 clarity the meaning of the word
'monopOliZe. as Used IN the antitrust act
! was one of the counsel who organized
the United States Steel Corporation. | was
then of the opinion that the formation Of
the company was not in violation Of tho
antitrust act, and ! am still of that opln-
ion. My opinion was not based upon the
supposed authority Of tho Knight case. and
is not shaken by subsequent decisions OF
the Supreme Court.
My opinion was based upon tho ground
that the formation or tho company was
not In fact a restraint Of trade and COM
mercc. and did not i'm fact constitute
nonopolizing trade or commerce The for
nation of the company involved a combina
ton Of manufacturers of about 30 per cent
OF the iron and steel produced IN the
e
pose Of tho combination was to create a
monopoly. The result was shown that al
though at first competition Was diminished
10 some extent. vet at all times reasonably
competitive conditions in tho iron and steel
trade continued. and that since the formd-
tion OF the company competition has
grown.
II after lts formation tho company did
individual acts that we're i'm restraint Of
commerce or attempts to monopolize com
mercc, and therefore i'm violation Of law,
those acts undoubtedly would be unlawful
and might he restrained or punished. but
they could not render unlawful the original
formation OF the company or its continued
existence.
4 number Of Mr.. Morawctz's hearers
jumped to the conclusion that I'm the last
sentence quoted he referred 10 the acquisi-
ton by tho steel Corporation OF the Ten
nossee Coal and Iron Company. The last
question put 10 him before ne ,cft the
platform was:
do YOU think that the Tennessee Coal
and Iron deal was violation Of the sher-
man law"
Every one laughed at the buntness of
the query. including Mr.. MoraWetz. and
then every ono laughed some more when
Mr. Morawctz prefsced his reply by saying;
Il had nothing TO do with that transac-
ton"
lie took tho view OF il, however, which
President Roosevelt entertained at the
time-that il was a necessary measure to
save the general situation developed by
the panic OF 1901.
Mr.. Morawetz approved of every decision
OF the Supreme Court involving tho anti
trust law except that I'm the knight case.
and he went OH 10 point out that the
Standard oil and Tobacco decisions had
effecttsy reversed The Knight decision.
Il believe ssid he that the antitrust
act should remain on the statute books ss
II stands. and that no attempt should he
made TO amend it,
The speaker said he agreed with eK-Sen-
ator Edmunds. who drew up the Sherman
Law. that any attempt to define acts of re-
straint or monopoly would do more harm
than good On the other hand, he thought
= commission 70 supervise all companies
other than common carriers engaged I'm in
terstate commerce would he an excellent
addition 70 the machinery of the Law. lie
would Clothe II, no said with a dignity
equal TO that of tho Interstate Commerce
Commission give IL full powers of inves-
tIgation and even allow n to decide whether
the act Of \ corporation under its juris-
diCfion constituted =. violation of the anti
trust law. subject n review by tho Com
rnorco Court. but by no manner of means
would he give it the power 10 fix rates or
prices