Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-11-18
CLASSED AS F|AScO
Tobacco Trust Case Referred
to as HumiIiating.
SAMUEL UNTERMYER'S VIEW
Supplementary Legislation Needed
for Sherman Law Enforcement.
ACTION BY CONGRESS NEEDED
Believes Industrial Commission
Should Control-Statement Made
Before Senate Committee.
SAMUEL UNTERMYER'S VIEW
ACTION BY CONGRESS NEEDED

Congress should force the government
to appeal from the decree In the Ameri-
can Tobacco Company case said Sam
uei tntermyer OF New York today be-
fore the Senate committee on interstate
commerce The court should be forced
to say whether the dissolution plan
agreed upon IS what it meant by an
order of disintegration. II the matter
went to the Supreme Court / should ex-
pect that body to say that this Is not
disint egration.''
Mr. tntermyer said he understood the
Attorney General had been to some ex-
tent consulted in the formation of the
plan of dissolution, but that he thought
the tobacco company had done the At
torney General. He said the tobacco
trust had simply changed its clothes. .
and that the circuit court of New York
had given the stamp OF judicial APP
prevail to another trust
Humiliating Fiasco.
"The pitiful and humiliating fiasco In
the American Tobacco Company case has
strengthened my belief that supplement
tary legislation Is necessary for the en-
forcement of the Sherman antitrust law
said Samuel Unterrnyer OF New York,
chairman Of the subcommittee on trust
legislation of the National Civic Fedora
ton. before the Senate committee on in
terstate commerce today.
The courts are not dapted to the en-
forcement of DEGREES of disintegration
against big combinations he said
They have no machinery to carry them
out. There must be some body created
that cannot only inquire into conditions
of corporations that have been declared
outlaws, but can prescribe the manner OF
disintegration and see that its orders are
carried out
Essentials to Business Stability.
Mr.. Untermyer explained to the COM
mittee which is investigating the trust
problem with a view to legislation h
plan he has incorporated in a repor, to
| the Civic Federation. The federal in.
corporation Of industrial concerns and
the approval Of limited trade agree
ments are essential to business stabil-
ity. he said.
Every business is made a gamble
by the want Of stability in price," said
Mr.. Untermyer.
He said limited agreements, that
would maintain level prices In metals.
grain. cotton and other commodities.
would give a stability to business with
benefit to the public.
Il don't believe in unrestricted COM
petition" said Mr.. Cntermyer. Its
| logical outcome is legalized monopoly.
The free play of competition is healthy
down to the point where the industry
faces ruin. Then limited agreements
should be permitted
Federal Incorporation.
Federal incorporation, said Mr. Inter
myer would prevent the granting of
unrestricted privileges by states who
follow the lead Of the wildcat states
in Offering inducements for the organi-
cation Of corporations.
| Mr.. Untermyer referred to the organ
ization of the United States Steel Cor
poration as the most fragrant violation
| of the law ever known.
IF the government had beer alert In
1901 that corporation would never have
been organized he said. Its plans
were published for months at advertising
rates. but the government was supine
and did not choose to act"
Senator Cummins asked how reason
able profit could be determined by a
| federal commission. in deciding how far
| industries could combine. Mr.. Cntermyer
suggested that the lowest cost of manu-
! faCture be taken basis, and a rea-
! sonable profit added. He did not advo-
| cate agreements as broad as to insure a
profit to every manufacture, whatever
his cost of production.
Secret Agreements Formed.
/ Mr.. Untermyer declared there are now
secret agreements in one-half OF the in
dustries of the country, brought about
by runous competition which threatens
the life Of the industry.
| Our greatest danger is not from the
! great trusts, but from these secret pools
and agreements, with which the business
of the country is honeycombed, said Mr..
/ Untermyer.
| He urged the application of the Sher-
man law to the big trusts. but said fed
eral supervision should control reason
| able agreements in various industries.
| What Is your definition of trust?
| asked Senator Cummins.
"A com bination In corporate form OF a
| substantial part OF an industry under a
1 single ownership, either through hold
! ing company or otherwise said Mr.
! Untermyer 1T does not necessarily IN
yolve a monopoly, but such a control OF
the trade that it virtually amounts to a
monopoly"