New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-28
LIE STEEL SUIT.

one to take regarding the federal gov
crnment's suit for the dissolution or the
United States steel Corporation Is that
taken by the corporations counsel, MT.
Stetscn. who welcomes the action as
putting an end TO uncertainty. Uncer-
tainty does exist. The Attorney General
of the United States. whose success IN
prosecuting actions under the Sherman
l2vg gives great weight 70 his opinion,
thinks that the Steel Corporation does
violate the law On the other hand,
equally able counsel of the corporation
appear confident that It does not The
case is thus sure to he fought ont with
learning and skill on both sides, and
ben il has been concluded the busi-
ness Of the country will know a great
deal more about where 1t stands and
what the scope of the Sherman act IS
tfan 1t knows to-day And perhaps the
process may develop. or help to develop,
well defined policy for the country in
regard TO the big industrial combina-
tons. At present the effort is to restore
competition where it has been de-
stroyed. The difficulty Of that course is
shown in the Tobacco Trust case, where
the only plainly feasible plan of reinte-
grafton that has been suggested leads
only. It has been shrewdly said, TO such
division as the division Of the hand
into fingers.
eNo 8 hn
ton IS uncertain because that corpora
ton does not resemble the Standard
Oil Company or the Tobacco Trust either
in the scope Of fits control Of its field or
in the methods that it has pursued. 1t
IS not a monopoly. and it appears to
have scrupUlOusly RETAINED from so ok
tending its business IN the manufacture
OF steel as to become monopoly. More
over, II has Just decided TO cancel its
lease TO the Great Northern ore lands,
Cstensibly, at least, on the ground that
its control Of ore was open TO the criu-
Cism of monopolistic tendency made
against # by the United States Com
missioner of Corporations. In fact. the
corporation has shown throughout re-
spect for public opinion and DISPOSE
ton TO keep within the law. It's affairs
have been conducted with unusual pub
licity. II has had, at least so far as
the public knows, no secret subsidia-
yies. "fake Independents, which it EN-
ployed IN making trade wars upon IFS
competitors. II has not INDUCED in
destructive price cutting In general it
may be said TO have been free from
those vices which have been character
/ istic Of the combinations and monopolies
| that have been the subject Of common
complaint, and public opinion has never
been arrayed against # In no case can
It he said that the present suit has been
brought as the result OF wide public
demand
It IS well TO keep these facts I'm mind
in order to understand how this suit
tests the application Of the Sherman law
70 a totally different sort Of combination
! from any 10 which ii has hitherto been
| applied. The steel Corporation Is a COM
! blnation, but one without most. If not al,
| of the vices which have discreditcd the
name If combination. II may he felt
| that the power possessed by any comb
nation which controls half the produc-
+ ton ~ 50 important an industry rs steel.
and large part Of the natural resources
| upon which that industry is dependent.
I is So great ~ 10 involve serious posi-
hllity Of danger TO the country. Judge
| Gary, the bead of the Steel CORPORATION.
seems 10 hold some such view, for he de
ClarcS himself I'm favor of governments
regulation of the biz combinations. in
Guiding even the prices of their products.
I his danger may justify the dissolution
of the steel combination if il is found TO
be in undue restraint Of trade. But evil
dcHco i'm the possession of the. public docs
not indicate that the power possessed by
the company now accused has been much
abused Stability Of prices, which has
been a prime object Of the combina ton,
is desirable if the prices are fair. The
control over the prices of steel has been
strong enough 10 prevent their risin.
when demand was very active but II has
not been sufficient TO keep them from
falling when demand was very weak.
There Is an "open market I'm steel now.
and there WAS one in the panic times Of
1907. The only argument that IS ever
advanced TO show that prices have been
kept unduly high in ordinary seasons is
that the profits Of steel manufacture
have been large But millions were
made In steel when competition was at
is height.