The Birmingham age-herald., 1913-12-05

fiance of the Sherman law he has no dis
cretion. He must lay the evidence before
the courts 50 that there be judicial deter
mination whether or not the corporations
were organized and are being operated in
violation of the Sherman law.
1t was from this point that the infuen-
tial organization known as the Merchants
association of New York city has within
few days undertaken to recommend TO
Congress that there be amendment to the
Sherman law or some other legislation
which would make it possible for any OF
those who contemplate large organizations
or any who now represent so-called big
business to seek from some authorita-
tive body, either the courts or the depart
ment of justice information which would
enable them to know whether their or
ganizations have been or would be es-
tablished and operated in violation of the
federal statutes.
Cause for Apprehension
The Merchants association of New
York city is a representative body. In
its membership are almost all of the mer-
chants and manufacturers who carry on
large business interests in the city, and
many of the members are democrats. 1t
has been long a topic among these MEM
bers whether one of the chief defects Of
the Sherman law is not to be found in the
inability of business men to understand
exactly what 1t permits and precisely
what it forbids. Apprehension has ex-
listed since the criminal action against the
seventy odd members of the so-called
Steel wire pool was prosecuted and the
members convicted and penalized with
fine of $1,000 each, although two years be-
fore the prosecution began the so-called
pool was counseled by it's lawyers that
probably their agreement would be found
unlawful. They Immediately broke up the
pool
Yet that action on the part of the gov
ernment has probably done as much as
any one thing to make business men feel
shaky. Many of the men who were pros
ecuted and penalized in the steel wire case
We're of the highest reputation for integ-
rity. Some of them, like Herbert Satter-
lee and Charles F. Brooker of Connecticut,
had only the yaguest intimations that an
agreement had been entered into whereby
the so-called steel wire pool was estao-
Hshed. Mr.. Satterlee was in Europe some
of the time the pool was in operation. He
was also Assistant secretary Oh the navy
under President Roosevelt at the very
time he was accused of having been en-
gagged in a criminal conspiracy as a men,
Der of the. so-called steel wire pool Hin
conspiracy consisted simply in the fact
that he was associated as director with
one corporation whose management had
made this agreement, yet he personally
knew nothing about it. But the indict-
ment and the penalty are now matters of
record.
1t Shook Confidence
Those criminal proceedings greatly dis
turbed business men. They did not know
whether not they might be arrested
after indictment accusing them of having
violated even in ignorance some years
earlier the provisions of the Sherman law.
The prosecution of the American Can
company unquestionably at this time
tends still further to impair the confidence
of business men. This view may be en-
tirely unjustified. Nevertheless it is A
fact which must be reckoned with by
those who are now seeking earnestly TO
put an end to the lack of confidence so
that business activity can be restored
The point that is made in the case of the
prosecution begun against the Can com
pany is this-the proceedings were not
taken until after this corporation began
to make money and pay dividends. That
seems peculiar feature of the prosecu-
tion, vet it doubtless can be explained sat
isfactorily by the department of justice
by saying that complaints and facts We're
not brought to the attention of the de-
partment until recently.
Various explanations are given of the
conditions which account for the inereas-
Ing depression in business. Charles NJ
Schwab says that ne is convinced that the
depression is chiefly due to the effects OF
the newly enacted tariff law. The leading
experts in the banking world certainly,
the ablest examiner of all. are of the
opinion that one reason for the depression
can be found in the attitude of the banks
OF the United States at this time toward
granting of credit. But these examiners
say, Furthermore, that the banks would
be reckless If they did not prepare them
selves for the change from the present
national banking law to the measure
which will take its place some time this
winter Neither of these explanation
that of Mr.. Schwab or that of the bank
examiners-is regarded as complete, nor
do the two taken together fully explain
the situation.
The best judges have no doubt that the
American depression of business Is SYM
pathetic with that which chara cterizes
the other commercial and Industrial ma
tions. There are statistics officially pre-
pared which show that natural expendf-
lures and the use of credit have been IN
recent years far in excess of the worlds
yearly increase in fresh capital There
fore there must be a long period of en-
forced economies and wise liquidation.
That this of itself Is not a harmful In
f1uence but in the long run will prove to
be very beneficial, is frankly admitted by
business men.
These worldwide conditions being what
they are, it is thought to be the part or