Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-06-03
Late Senator Hoari Who
Wrote Sherman Statute, So
Held in 1881, Year Follow
ing Its Enactment
FACT IS INTRODUCED
IN DISSOLUTION SUIT
Judge Ebert H, Gary, Chair
man Of Steel Trust, Cites It
10 Prove No Violation by
Corporation,

isY MORNING lousHsl SPECIAL lrA1rn WiHsl
New York. june e.-tvidencc that
the late senator George h. noar of
Massachusetts. vao framed the
sherman antitrust Law. wrote m
opinion one year after us enactment
which held that steel manufacturers
who entered pool agreements to fix
prices. regulate output and divide
profits could not be convicted under
the law. cnmc 10 light today at the
hearings OF the government dlssolu-
tion suit against the United states
steel corporation.
The opinion. written in 1891. at
the request Of wire manufacturers
who proposed to form pool. WAS
put Ia evidence by attorneys for the
CORPORATION in connection with tcs-
timony Of Judge Elbort VI Gary
chairman Of the corporation saying
that in the early days o. the steel in
dustry it WAS supposed by steel man
ufacturers and lawyers that nools
were legal. Three years ago pools OF
wire manufacturers were broken up
by the government under the law and
their members indicted and fined.
The opinion. Judge Gary said to-
day. came from the files OF Wash
burn. Moon d CO. OF Worcester
Mass. one OF the concerns which par-
tcipated In one Of the wire pools OF
the early 90s and for whom, he said.
l.. "a
Tho witness described the docu-
mont as an opinion which showed
tho wire companies that they could
enter into "a combination 10 fix prices
without violating the sherman law
II think the contract above pro-
posed Is reasonable" wrote Senator
Hoar in reference TO the proposed
pool. and would be so held by tho
courts Of the upited states.
The opinion Of the courts. like the
opinion Of the rest of the community
may vary IN different generations as
to what is reasonable But the aues-
tion of reasonableness will De a aues-
tion Of law for the courts 20 de-
termine upon al the facts and in the
light OF experience, the business
habits and the public opinion Of the
present time This being my opinion,
| think the parties to the agreement
above proposed would not be likely
to be convicted OF an offense under
the statute of last year.
Il cannot see any distinction IN
in a contract Of a working
man not to work for less than stip-
ulated sum as wages ana a contract
OF employers not to sell their product
less than at stipulated sum. Both
these being intended for their legit-
innate protection and not accomplish
ed with any stipulation unlawful or
oppressive or fraudulent methods, seem
to te lawful within the policy of the
law as It now exists and not TO be in
restraint of trade but in advance
ment thereof
"They all believed. testified Judge
Cary that Senator Hoar's opinion
could be relied upon
The witness admitted. when asked
10 state his own connection with
pools that some years before the
OF the corporation he had
signed in behalf of the Illinois steel
an agreement with Andrew
Carnegie to divide their rail business
on a so per cent basis, an arrange
mcnt in which, he said, other rail
later participated.
IL didn't consider at the time that |
.he rail agreement was Illegal" he /
said. II never made any secret about /
Il with our customers. Later ! chang
I'd my opinion OF the law and my at /
itude toward these arrangements. I
cached the conclusion that the pub |
lie sentiment, if not the law. was op- I
Dosed to them. The opinions Of the /
'ourts changed. The opinion of the /
court in the Northern Sc /
,urities case was strong Influence,
md | think the supreme court from
ime to time extended the Application
# the Sherman law
Judge Gary said that about the
after part of 1904 he had taken up
he question of pools and agreements
With the finance committee OF the
and that as a result, SUD
salaries, (which we found on inves-
igation to be participating in any
such agreement, were ordered to
lbandon them"
The witness said he had been sur
,riscd TO find "our subsidiaries par
icipated in any Of these agreements
Is late as they did"
He denied that he had ever at
ended certain meetings Of plate and
pools. as testified ~ VIII
lam II. Corey. former president OF
he corporation.
Judge Gary defended the acquisi-
ion of the Tennessee Coal and IRON
which the corporation
was taken over To stop the
,anic Of 1907. and not to eliminate
Confined on Page Two.)