Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1911-10-14
steel Cooperation Acts.

Steel Corporation Acts.
Henry Clews weekly letter. sent
from New York on September 90.
comments on the general financial
and sugar situation as follows:
The event Of the week was the de-
claration of the directors of the Unit
ed States Steel Corporation that in
their belief II was not a iaw-breaking
organization, and that II was not con-
templating any voluntary dissolution.
This temporarily set at rest alarming
quotation which began in the early
part of the week. The question as
20 whether the steel Corporation has
broken the law Internationally or
otherwise may yet have to be settled
by the courts; II so. will mean long
and strong legal battle. The Steel
, Trust Is the greatest Of all industrial
combinations and as such Is naturally
the center OF political attack. The
fact that its securities are distributed
on an unequaled scale renders its po-
sition all the more interesting and
important Commissioner Herbert
Knox Smith has already called at
tention to the practical monopoly Of
f, the best iron mines in the country
upon which the Steel Trust places a
1 high valuation. and this at least Is
likely to be an important point Of
contest Probably 1t will not be prov
ed or even alleged that the United
States Steel Corporation as a whole
I is monopoly. That II has exerted
a large influence upon prices will
doubtless be proved. II may also be
declared a practical monopoly In GER
tain respects. That 1t has conduct
ed hostile warfare upon any of Its
competitors will not be proved. In
(, many respects the management Of
/, the United States Steel Corporation
Is admirable and deserving OF high
| praise, but In the present state OF pub
lie temper and with such vital econo-
mic issues awaiting settlement, II
seems hardly possible for the United
States Steel Corporation to avoid the
rtrictest scrutiny of the law.
II Great fundamental issues are at
stake In this controversy. The Shcr-
man law aimed to preserve competi-
ton. The prime purposes Of many OF
our great Trusts have been to elimin.
etc competition. The fact that they
have sought to do so many often be
difficult to prove. but their practical
operation leads to no other concln'
sion. The Supreme Court has inter-
preted the main purpose Of the Sher-
man law to be that Of preserving com
petition. Mr., Taft evidently recog-
nizes that his duty lies In enforcing
the law. To Wall Street the issue
rs both unpleasant and untimely. I'm
pleasant because II seriously disar'
ranges existing methods: untimely
because when other troubles are thick
It compels REIMBURSEMENT that will
be far-reaching In effect and involve
much labor and friction. The imme'
date outcome Is certainly disturbing
The later consequences, however, vii
be beneficial. The breaking up OF
the monopolies will dsarm public cri'
ticism, avert many attacks upon cor
porations and leave business less al
the mercy Of political demagogues. i
will also serve to bring the country
into a safer and sounder economic
position. The control of prices by
/, great organizations had something Il
do with the present high cost Of liy
ing. Naturally, all these organization
resisted every downward tendency o
the markets, which otherwise wOul,
have declined more rapidly to lowe
levels. They also systematically re
stricted production. The power of tn,
trusts on prices, however, Is partl.
= Exaggerated, Incidentally the breaking
a up Of these monopolistic combina
tons will prove the most telling bloy
against socialism which has beef
struck In many years, The worst o
this agitation Is that II comes whe
b. the markets are already disturbed b
9 international politics, by war rumors
a by railroad strikes, by trade reaction
4 by coming tarlff system revision an
q other untoward events.
q The wonder IL that the securit
, markets stood up against such a sc
q ries of shocks 80 well. Thus far n
IS serious trouble has occurred, and d