The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-11
Government Having Trouble
in Steel Trust Probe.
Evidence Up to Date of Little
Value, Says Holland.
CONDITIONS UNSATISFACTORY
Hinted That This Is Due to
Overproduction.
Effect of Panama Canal Matter
of Speculation.

New York May IL, 1912.-The testi-
mony thus far elected by the master
appointed by the courts to take testi-
mony wherewith to sustain the conten-
ton of the department of justice at
Washington that the United States
Steel company was organized and is
now operated in violation of the Sher-
man antitrust law is not thought by
lawyers who have read the report to
be of special consequence one way or
the other.
The attorney-genera was quoted in
some of his addresses as having said
that the government at Washington
had been persuaded that the United
States Steel corporation is an unlawful
organization because it had obtained
or has the power to obtain substantial
monopoly of the iron and steel busi-
ness.
1t may be necessary for the govern
ment to trace back from the time the
complaint was filed to the time of the
organization of the Steel corporation
its many transactions, seeking through
an entire history to establish the
charge of monopoly in fact or a potent
monopoly.
But it has seemed to many persons
who are familiar with prevailing con-
ditions in the iron and steel producing
business that it would avail better IL
the government would secure testi-
mony which would set forth the pre-
vailing conditions. Such testimony
might make it unnecessary to read
backward the history of the United
States Steel corporation. On the other
hand, the government might not be able
to offer any testimony which would
show that monopolistic conditions pre-
vail at the present time. And if there
be no monopoly at this time that fact
might justify the inference that the
United States Steel corporation has no
potent or lurking monopolistic charac-
ter.
Many are the facts which now tend
to justify the inference that instead OF
a monopoly possessed by any one cor
poration there is very intense compet;-
ton in progress. Theoretically the
United States Steel corporation, it may
be said, should have been able in twelve
years so to perfect it's affairs as 70
command a monopoly of the iron and
steel business. If that could not be
done in twelve years time by CORPORA
tions possessing enormous resources,
both of capital and of ability as well as
of highly-skilled artisanship. thorough
ly harmonized plants and the control of
vast bodies of ore. there would seem 10
be no reason for the suspicion that the
corporation would ever secure monopo-
listic control of the business.
The Present Conditions.
There seems to be no doubt that pre-
vailing conditions in the iron and steel
business are far from satisfactory
Many of the expert authorities suspect
that overproduction is now in progress-
There come to New York detailed re-
ports of the execution of contracts for
very large production of iron and steel
commodities at prices which are either
no more than the cost of production or
else are slightly under that cost If
there were monopoly this could not he
Monopolistic control of the business
would cause production to be limited to
an amount which would yield a reason
able profit. One of the reports which
has prevailed in New York for several
days is to the effect that were rha
profits obtained by the United States
Steel company upon its present outfit
equal to the profits obtained by the
corporation prior to 1908, a large in
crease in the dividends upon the COM
mon stock would be inevitable and In
all proba bility, The market quotations
for that stock would be at par
The recent depressing ouarterIv re-
port of this corporation is common1v
explained here By the Statement that
much of the business of the cornor.
tion has been done at little or no nroft
The government might INTRODUCES Wit
neSses in the present hearing who vvo,,Id
be qualified to testify to the anno,,ot of
business Obtained by the Independent
companies, and also to the zeal with
which the independent corporations are
seeking business. There seems to he
no reason to doubt that, for the time
being at least, the alleged purpose OF
the United States Steel CORPORATION
management to maintain stability Of
prices has failed. 1t might be that
witnesses could show that even had
there been monopoly this business
phiosophy OF the steel corporation man
ayers was faulty: but the prea1,r7n-
ton here is that If the steel cor,~.ar,,
has been unable to maintain STABILITY
or prices the fact of itself tends TO
show that the corporation is NOT mon
opolistic, either in fact or in nota,t
energy. But If it be not mononoIisttc
if the very severe business fastS ~
the past year and a half or two 1raa,o
show that. instead of mafntafnfne~ a
monopoly, there is the fntensest cor,-
petition in the iron and steel hust,,aes
then it is not impossible that the courts
would say that the government has
not made out its case, at least If the
government contention is based upou
the allegation that the United States
Steel corporation is a monopoly in fact
or possessed lurking and hitherto con-
cealed capacity to become a monopoIv
Testimony of this kind would tenc
very greatly to shorten a hearfne which
must be prolonged for year or more
if the present method of Conducting IL
be continued.
What the Panama Canal VIII Do.
The ccnsuls general who represent
other nations in the United States and
whose offices are for the most part in
New York city have formed an asso-
citation for discussion and for common
welfare. At the first gathering of these