The Barre daily times. (Barre, Vt.) 1897-1959, 1911-11-20

IS VEHEMENT
Calls the Tobacco Case a Judi
CiaI Farce
GIVES VIEW OF STEEL TRUST
Favors Supplementary Legislation to En-
force the Sherman Law-outlines
His Plan for Federal Super
vision of Trusts.
GIVES VIEW OF STEEL TRUST

Washington, Nov. 20.--"Congress
should force the government to appeal
from the decree in the American To-
haeeo company case" said Samuel I'm
termyer of New York Saturday at Wash
ington before the Senate committee on
interstate commerce. "The court should
be forced TO say whether the dissolution
plan agreed upon is what is meant by
an order Of disintegration. II the mat
ter went to the supreme court | should
expect that body 10 say that this Is
not disintegration. Mr.. Untermyer said
he understood that the attorney general
bad been to some extent consulted in
the formation of the plan Of dissolu
tion, but that he thought the tobacco
company had dome" the attorney gen
eral
The pitiful and humiliating fiasco in
the American Tobacco company case has
strengthened my belief that supplement
tary legislation is necessary for the en-
f0rcement of the Sherman antitrust
law" said Mr. Untermyer, who is chair
man OF the subcommittee on trust leg
islation of the national civic federation.
"There must be some body created that
cannot only inquire into conditions OF
corporations that have been declared out
laws, but can prescribe the manner of
disintegration and see that its orders
are carried out" be said.
THE menace OF the United States
Steel corporation is not in its size or
the amount of its capital stock but in
the concentration Of the money power
behind it, said Mr.. Untemyer :" It is
the most menacing Of all the combina-
tions because the power makes every
competitor in effect a puppet. The pow
erful hands that protect the steel bus
mess have control OF the greatest banks,
trust companies and railroads; and it is
impossible for competition to exist
against IT," He expressed the belief
that merely limiting their capital stock
will not curb trusts.
The Sherman law must be enforced up
to the point where the industry con
fronts ruin from competition, he said;
and then the government must sane
ton trade agreements that will give sta
bility to business and permit indus
tries TO make reasonable profit. lie
advocated the establishment Of an in
dustrial commission to regulate such
agreements and the federal ehartering or
licensing OF interstate corporations.
Senator Cummins asked how a "rea
sonable profit" could be determined by
a federal commission in deciding how
far industries could combine. Mr. I'm
termyer suggested that the lowest cost
L -. / : L. 4.
and a reasonable profit be added. He
did not advocate agreements as broad
as to insure a profit to every manufae
tuer, whatever his cost of production.
Mr. Untermyer declared there are now Sc
eret agreements in one-half OF the in
dustries Of the country. "Our greatest |
danger is not from the great trusts, but |
from these secret pools and agreements |
with which the business of the country
ia honeycombed," he said. He urged |
the application Of the Sherman law to
the big trusts, but said federal super
vision should control reasonable agree
ments in various industries.
what is your definition Of atrust 2"
asked Senator Cummins. "a combina
ton in corporate form of a substantial
part Of an industry under a single own
ership, either through a holding COM
pany or otherwise" said Mr.. Untermyer.
at does not necessarily involve monop
oily, but such control of the trade
that it virtually amounts to mono
poly" Mr.. Untermyer described the
method of dissolving the tobacco trust
as the most colossal judicial farce ever
IF it is allowed to stand
without appeal he said, lit legalizes
action that would otherwise be illegal |
under the Sherman law, and prevents
of combination that would |
have been considered Illegal"