The sun., 1912-07-20
Stanlc, Committee Would Give
Individuals Power
to Sue.
STEEL CORPORATION HIT
Bill Urged to Prevent Its Di-
rcrtorS From Holding Of
fee in Railroads.

mittee makes in its Forthcoming report
These are Of far reaching importance,
involving amendments to the sherman
antitrust law and other enactments
that are Of great consequence to the
big business interests of the country
This is OF course. the vital portion Of
the steel committee report.
one bill drawn by the committee and
which Will be recommended to the
House for passage dca,s exclusively
with proposed amendments to the Shcr-
man antitrust law. Tho most impor-
tant section of this hill Confcrs on in
dividuals or corporations the right to
begin proceedings under the Sherman
antitrust law. Under the present law
the Attorney General and his assist
ants alone have this power. This sec.
ton Of tho bill IL as follows:
Any person injured or threatened with
injury to business or property by any other
corporation or person by reason of anything
forbidden or declared unlawful by this
act shall he entitled 10 bring suit in equity
IN any district court of the nited states
" restrain such person or corporati ion
from doing such injury.
The committees report. which will be
S'Ut W NV Ilouse carly next Week, VIII
say that the Attorney General and his
subordinates should not have exclusive
jurisdiction over suits or proceedings
against combinations In restraint Of
trade. The report will hold that it Is
essential that the injured parties them
selves should have access to the courts.
This Is "A contention that La Toilette
and other Republican progressives have
raised for some time. This proposed
anne ondment to the Sherman law, in the
opinion of members uf the committee. IL
the most important recommendation to
he made by the Investigators
Another amendment tn the Sherman
law proposed In the committees report
places on the defendants in sherman
antitrust law suits the burden of prov
ing that the restraint which they cxcr-
else on trade IL reasonable. This
amendment is designed to clear away
the haziness that has been left by the
decisions Of the Supreme Court in the
Tobacco and Standard on cases.
The Stanley committee IL hrmly OF
the opinion that the amendment If
enacted will clear away all doubt as To
the real intent OF the law on this point.
Since the tobacco trust and Standard
oil opinions the complaint has been
raised that sn individual to recover
under the Sherman antitrust law
would be Obliged to prove in each in
stance the unreasonableness of the re-
straint. The amendment proposed by
the Stanley committee will shift that
burden to the defendant as soon as
proof OF a conspiracy has been estab-
lished the presumption in every case
Aat ha OF r MT S
reasonable.
The committee report refers directly
to the Standard Oil and tobacco trust
cases and holds that these dissolutions
have been lacking In effectiveness and
have failed to benefit the Independent
producers.
Besides the amendments to the Sher-
man antitrust law. the Stanley COM
mittee will recommend sweeping addi-
ton to the interstate commerce act
This amendment will compel the United
States Steel Corporation to divorce
itself from its holdings in transporta-
ton lines. The amendment II enacted
will affect other Industrial corporations
that have acquired an interest In either
rail or water transportation lines. This
amendment will provide that no cor
poration engaged in mining shall own
or control directly or indirectly any
railroads or steamship lines.
The Stanley committee goes further,
however. II recommends the enact
mcnt OF a bill making II unlawful for
the directors of any corporation en-
gagged in the manufacture of steel
rails or other steel products in COM
mon use by railroads to serve as d!-
rectors Of any railroad. This provision
Ia aimed directly at the United States
Steel Corporation. several OF the direc-
tors Of which serve on the governing
boards OF railroads. chairman Stanley.
in the course Of the inquiry, tried TO
show without any very great success
that this interlocking Of directorates
had an effect upon the prices of steel
RAILS and other products.
The committee In its report discards
the recommendation made by Judge
Gary and George W. Perkins that a
Government commission be established
tor the regulation Of Industrial corpora
lions. even to the extent of fixing
prices. The committee finds that such
a plan is semi i-socialistic. impracticable
and unconstitutional.
One Of the most important chapters
in the Stanley steel report deals with
the so-called Gary dinners. The steel
committee report condemns those din
ners and holds that through them the
corporation exercised a large influence
In the fixing Of prices, Judge Gary
contcnded that this exchange of ideas
al these functions was perfectly legit-
mate, but. the steel committee differs.
At ii meeting Of the committee to-day
the section Of the report dealing with
m. absorption OF the Tennessee Coal
ami Iron Company by the Steel Cor
pora,lon was considered and was
changed in several respects, Members
NJ the committee felt that Chairman
stanley in his rough draft of the re-
port had been too rhetorical
Martin w. IittlctOn. one of the law
N'rs on III" committee, In speaking to-
night "f the committees rccommenda-
lIon In regard to changes In the Sher-
man law said;
III" provision authorizing parties
"" nav" been damaged To 20 into a
court ~ equity and recover uni"r the
Sh''man law is highly important II
Is alleged that many firms and cor
l''du"n, were driven out of business
" ~ >mcrican Tobacco Company