The Birmingham age-herald., 1911-05-17
Could Not Be Proved Mo- nopoly In Unreasonable
 Restraint of Trade
EFFECT OF DECISION
 ON STANDARD OIL
House Passes Stanley Resolution, However, and Its Author Is Sanguine of Results of
 Contemplated Probe
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By PATTERSON sTEALEY

By PATTERSON sTEALEY
 Washington, May 16.-(Special) )-The resolution of Representative Stan ley, of Kentucky, providing for an in vestigation of the United States Steel corporation was passed by the house to- day.
 The passage of the resolution closely following upon the decision of the su- preme court yesterday against the Standard oil company was topic of discussion at the department of justice today and led to the report that the department would at once forestall the action of the democratic house by pro- ceeding against the company. If the department has any such idea 1t is care fully concealed. Some months ago the department began an Investigation to determine whether the corporation was doing an unlawful business. This inves- tigation did not proceed far. Attorney General Wickersham decided that 1t would be useless to go far until 1t could be learned what the decision of the court would be in the Standard oil and Tobacco cases
 The first of these cases was decided yesterday, and 1t is said today it has convinced the attorney general and the President that the United States Steel corporation cannot be successfully prose- cuted as a monopoly in restraint of trade to an unreasonable" extent. It is even doubted if the corporation could be proven rnonopoly evan in ..raa con hla restraint of trade
 It is said to control less than 60 per cent of the steel output of the United States.
 Decisions First Effect Tnis is the hrsi effcet. so far as the administration is concerned. of the Standard Oil opinion. If any other pros cautions are to be abandoned on account of the 'unreasonable'' clause in the de- cision no intimation has come out of the White House.
 It Is the belief of the advocates of the resolution which passed today that the house investigation will force prosecu- ton.
 Representative Stanley, the author of
  night:
 'The resolution itself Is far-reaching to investigate thoroughly the relations and affiliations of the United States Steel corporation, with its secret and nominal rivals. the Pennsylvania Steel company, the Cambria Steel company and the Lackawanna Steel company. It will investigate into the questions of se- cret ownership or domination, and all and other railroad companies. It will thoroughly probe the close connection between the steel trust and trust com panies, insurance companies and other corporate organizations with their stock holders and directors.
 Tt provides for searching inquiry into the over-capitalization and bonding of those concerns. It provides for plenary powers to investigate the new and per- nicious practice of duplication of directors by the Steel trust and other concerns.
 ''It is well known that the United States Steel corporation has IS directors who are really masters of the industrial enter prises of this country, one director dom mating banking businesses. another rail- road business, another the coal business and so on.
 g. Probe Stock Manipulations
 Tt will search into the question of spec ulations in stocks and bonds, agreements among such spectators for the imitation and depression of the statute of stocks and the inordinate profits made by such spec ulations to the detriment of the public
 .The committee is clothed with the power to investigate the cause of panics. like the panic of 1907, which was due to tine manipulation of the bond and stock market and of banks. This committee is instructed to rec ommend such legislation as may be neces- sary to prevent such panics in the fu- ture The committee Is authorized to sit as a whole or by subcommittee during ses- sions of the House or recess thereof to employ clerical and other assistance and to compel the attendance of witnesses.
 No committee was ever clothed with more sweeping or plenary powers, or ever faced a more colossal task than the committee headed by Mir Stanley for the investigation of the United States Steel corporation.
 This committee is composed of some of the greatest lawyers on the continent. Martin Littleton of New York has won international reputation as a jusist, Charles Bartlett of Georgia was for years on the bench; Jack Beall of Texas is one of the ablest and most brilliant speakers on the democratic side; Daniel J. Mc- Glllicuddy of Maine was prominently men, toned, twithstanding he is new mem- Der of the judiciary committee. Olm- sted of Pennsylvania. Young of Michi- gan, Sterling of Illinois and Danforth of New York are all lawyers of ability, and are emnently conservative. It Is not an- ticipated that they will be ultra in their efforts to condemn the Steel trust.
 'The democrats were suggested by MT. Henry. chairman of the rules committee. The republicans were named by Mir. Mann. the minority leader"
 
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