The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-12-25
SERIOUS PROBLEM
. EMBRACED IN SUITS
FOR D|SOLUT|ONS
Officials in Doubt About De-
termination of Status of
Harvester Company
MANY MONTHS UNTIL
STEEL SETTLEMENT
Telephone Company's Action Has
Caused Much Better Feeling in
Business and Political
Circles Generally
BY HOLLAND.


New York, December 24.-(Special.)
Information has reached this city from
Chicago that leads to the suspicion that
the representatives of, the department
of justice at Washington are in grave
doubt whether or not the court will de-
eide that the International Harvester
company is trust within the meaning
of the Sherman law. This information
squares with some that has been re-
ceived in this city recently.
In some vague way 1t has been
learned that some of the officers of the
department of justice both in the ad-
ministration of President Taft and in
the present administration. are not en-
tirely sure that the evidence justifes
judicial determination that the Har-
vester company is a real trust within
the meaning of the Sherman law Yet
in Mr.. Taft's administration it was
deemed expedient, even essential, that
the question should not be left in doubt,
but that there should be final adjudica-
tion by the federal courts. 1t has al
ways seemed to lawyers as though the
proceedings in the Harvester case pre-
liminary to the arguments that are to
be made to the courts have been of a
character to justify the wonder whether
the government was entirely sure of
its case, at least so far as illegal organ
ization of the International Harvester
company is concerned
Even thought the court may find that
this combination in its organization is
not a yiolator of the Sherman law there
may be found in some of its methods
acts which the court will hold were in
violation of the law. The feeling in
this city is that if the governments
proceedings against the international
Harvester company be sustained the
courts will only go so far as to say
that certain things done by the com
pany were in restraint of competition.
Yet even upon this point there is the
gravest doubt
Within a short time the circuit court
will hear the argument by representa-
tives of the government on the one
hand and by counsel of the United
states Steel corporation on the other In
the proceedings brought by the gov
eminent to dissolve the corporation on
the ground that it was organized and
is being operated in violation of the
Sherman law. The testimony is all. In.
TO read that testimony in full is i'm
possible for the court. In only one or
two other cases has there been so great
an amount of testimony brought to the
attention of the courts. Published in
volumes of ordinary law book size, the
Testimony would make a library of con-
siderable size. The lawyers on both
sides do not expect a decision from the
federal courts before late spring, very
likely not until the fall of next year
of the eastern railroad companies that
they be allowed to increase their rates
for freight by as much as 5 per cent
are spoken of in business circles In this
city as the most important issues to be
decided within the next year No ono
doubts that If the interstate commerce
commission were to grant the increase
asked for by the railroads and if after
the exhaustive hearing the courts
should find that the United States Steel
corporation and the International Har-
vester company We're not organized or
| are not now directed in violation of the
Sherman law, the-result would speedily
| be favorably felt by American business.
There would be irresistible impulse to-
ward a revival of business activity
Restoration of Confidence
| We're the courts to decide that the
Steel corporation and the Harvester
company were reasonable combinations
| and have been conducting their bust
| ness along reasonable lines then capital
! and business men, it is said here, would
have something by which they could
guide their own business operations.
They would at last know precisely
where they stand. The area of fog, of
which President Wilson recently spoke,
would be clarified
Government Ownership
These proceedings have already been
very expensive. The Steel corporation
has paid practically the entire expenses
Of the investigation made by the gov
eminent. These expenses We're heavy.
That Is also true of the International
Harvester company. The government
investigates. but the corporations that
are Investigated are compelled to pay
almost all of the bills
This is an experience through which
the American Telegraph and Telephone
company has been passing, especially