The Wilson times. [volume] (Wilson, N.C.) 1896-19??, 1911-06-13
TRUSTS MUST
SPLIT Up
and FORM INDIVIDUAL COMPANIES
As BEFORE THE PROPERTIES
WERE MERGED INTO One
Begin AT THE BEGINNING


fent with the announcement that the
Department OF Justice has resumed
the investigation into the so-called
Harvester Trust" with a view to be-
ginning proceedings under the Sher-
man antitrust law it was learned
that many big corporations have writ
ten to officials of the government, ask
ing instructions as to the best man.
ner of reorganizing, so as to conform
with the law as interpreted by the
Supreme Court.
The information obtained by the
corporations from the officials, is that
they had better watch closely the
proceedings that soon will be begun in
the Federal Court of the Southern
District of New York. 1t was to this
court that the Supreme Court remand
ed the tobacco trust case with an
order to dissolve it, in such a. manner
as to bring it into conformity with the
Sherman law.
All the corporations have been in
formed that they may obtain definite
knowledge as to how they can con-
form with the law, by having repre-
sentatiYes at the hearings in New
York. The court there will begin
proceedings to dissolve the tobacco
trust within the next few weeks. Eff
forts will be made to ascertain the ex-
act capitalization of the trust, and the
manner in which the stock is held.
It is expected in Washington that
plan will be devised whereby all
stockholders in the holding corpora
ton will be reimbursed by stock in
the Subsidiary companies. Each COM
an independent footing, and there
must be no general clearing house for
their activities. according to the in
depreciation of the DEGREES of the Su-
preme Court made by the officials of
the department of Justice.
Officials of the Steel Corporation
have been particularly anxious to
have official advice as to the best
manner Of running their business
within the law. When Judge Gary.
the chief executive officer of the steel
corporation, was before the Stanley
Investigating committee, he asked par,
ticularly what the committee would
advise. The committee refused to
take the responsibility of giving ad-
vice, and the officials of the Steel
Corporation have now gone to the
Department Of Justice. In this case,
as in all others, the department has
advised that the proceedings in the
New York court might be watched
with advantage.
None of the big corporations of the
country as yet have made any definite
plans for reorganization, believing
that they had better wait until the
New York court had accomplished the
dissolution of the Tobacco Trust. II
IS recognized by the corporations that
where less than SO per cent of the
output in their special business is
controlled by them, there can be nc
regulation of prices or monopoly, and
all such concerns fell that they nee6
make no change in their organization
merely being careful in the future te
suppress no competition.
Other corporations which have
bought out rivals are wondering JUS
what steps they should take to re
store competition.
In connection with the renewal o.
the Investigation into the Harvester
trust, it is explained that W. S
Kenyon, now Senator, was the Assist
ant Attorney General in charge of thi:
investigation, and he decided that tht
harvester people we're closely a1liet
with the Beef Trust. He decided no
10 begin any prosecution until tn.
proceedings against the Beef trus
were well under way.
Ihat proceeding now is we'll launch
ed and the Department has determin
ed to make a careful investigation o
the Harvester trust to see whether
under the DEGREES of the Suprem
Court prima facie case of violation
OF the Sherman antitrust law can b
made out
Before the case is brought int
court the Department will make sur
theres has been a monopolization,
suppression of competition, and cor
trol OF prices, constituting an "unrea
sonable restraint of trade