New-York tribune., 1912-01-14
BRANDEIS WOULD MAKE
SHERMAN LAW STRONGER
Points to Tobacco Trusts Use OF
Taxing Power During Span
ish-AmeriCan War.
MkTHEWSON URGES REPEAL
LAWYER for Gas Interests Says
II Tends Toward Monopoly
Against Which 1t Is
Directed.

Louis ID. Brandeis. the antitrust lawyer |
Of Boston, who told the railroads OF 'he
rountry last year how they might save
500 600. 600 or more year, defended the
much-abused Sherman law yesterday ai'er-
noon against the attacks OF Charles +.
Mathewson, attorney for the gas interests oi
this CITY. who called it worse mess thah
anv other general statute ever passeu oS
the Congress of the United States Inc
discussion was at the second OF the series
os Saturday luncheons held at the Ne"
York Republican Club, No. 54 west AV'h
street, during the winter months.
Mr.. Mathewson agreed In the main WIN
the man from Boston as to the merits Oh
restricted competition, but he urged inc
repeal Of the Sherman act, as II tenoeo' ne
said. toward the monopoly against whlch
IL was directed He advanced as the most
potent remedy for the evils OF vicious com
binations a reduction of the protective tarlrf
on articles in which the trusts dealt
THAT would end monopoly, he MAIN
tanned. "more quickly and surely than any
otber action that could be taken. economic
law is stronger than any statute Nhlie III
a single country by tariff barriers Win IN
struments of production acting under 'ne
same conditions. it may be possible to ap-
rroach monopoly and eXtort un1alr PRICES
q is utterly impossible to do for any
length Of time where business Is open 10
the enterprise of the world
..The difficulties of the Sherman law re-
snonded Mr.. Brandeis. ARE as nothing
oor,narod with nv difficulties in determin-
,ps which of these things that are not so
NoL
that Brother Mathewson is an exceptionally
fine fellow. I trust you will not forget that
some of his ideas are not so fine.
"Tt IS true as Brother Mathewson told
Won that the tariff is the mother OF the
trusts. But the trusts also had fathers ana
hone that the Sherman law will not be
taken away until the Republicans from
Brother Mathewson's state Of Vermont join
with tbe independents and the Democrats
10 find us some protection against them
Mr. Rrandeis took up the La Toilette DILL
now under consideration by the senate
Committee on Interstate Commerce IL dlo
mt he explained, amend the Sherman law
hut rather supplemented 1t in three par
ttcuIars-by making 1t more certain IN ap-
plication, by making 1t easier OF enforce
ruent and by making the remedy more ell
fectfve and adequate. Coming TO the last
Of these, he explained that the La Fohette
hill provided that when the government op-
tanned a conviction under the Sherman act
any person injured by the convicted coIh-
bipation might get the benefit of it by fling
a petition to recover damages, without the
necessity of proving anything except the
damages suffered.
What" asked the lawyer, "if this law
had been in effect six months ago? During
the Spanish-American War the tobacco
trust by simply raising It's prices ana
holding them there, was able literally to
tax the American people contrary TO the
will Of Congress. The millions that Con-
gress intended should go back into the
treasury Of the people to cover the costs oil
the war went instead, into the treasury OF
the trust. Now, after all these years. comes
the decision that that was Illegal. and all
that can be said under the present law is,
Don't do 1t again.
Mr. Brandeis held that the success OF
trusts had been due solely to their power
10 fix prices. Taking the Steel Corporation
as an example, he said that, in spite Of the
addition of the Tennessee Coal and Iron
Company and several other large concerns
in the last ten years, IT now controlled a
much smaller percentage Of the country's
business than at the time OF ltS orBdIlZd-
ton. and at the end of ten years had in
creased its export business only as many
hundred thousands Of tons as Germany had
millions.
But the worst aspect of all, he held, was
the social aspect One-half Of our steel
workers. he said, worked seventy-two hours
CT more a week; one-fourth worked twelve
hours a day for seven days a week. Sixty
A.
Corporation were foreign born and 40 per
cent spoke no English.
This great combination has made It a
principle of business" he said, that those
with whom it most directly deals shall not
combine. II such is the by-product Of the
power of its great millionaire stockholders,
what will you expect from others less able,
less conspicuous, less in the public eyer"