Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-02-27
Democratic Senators Promise
Early Consideration Of In
terstate Trade Act.
PROPOSED AMENDMENTS
TO SHERMAN LAW TOPIC
Representatives of U. S. Chamber Of
Commerce Voice Critioisms-Lat-
ter Body Continues Sessions.

Early opportunity for the Senate to
consider the interstate trade bill was
promised by democratic leaders In the
Senate today when Senator Gallinger, re-
publican floor leader, inquired when the
trust bills would be presented to the
Senate.
Senator Reed predicted that tho bills
would be before the Senate in a Few
days and Senator Pomerene stated the
interstate commerce committee already
had begun hearings on the interstate trade
bill and hoped at an early date to COM
plete consideration of it.
Charles F. Matthewson of New York,
speaking before the Senate committee
on interstate commerce today for a
merce Of tho United States. criticised
portions of the proposed bills for
amendments to the Sherman antitrust
act. The section prohibiting discrim-
nation In price to injuree competitor,
he said. was inadvisable for the reason
that it would destroy competition.
"Illegal and Inadvisable."
The provision that owners Of mines
must sell their product to the public
without discrimination. he said. vir-
tually made a public utility out Of
mines. This. he said, was illegal and in
advisable even If legal. It would pre-
vent railroads. for instance. from pro-
viding themselves, through holding
companies, with supplies Of coal.
The bin attempting to define various
acts which shall be held to constitute
illegal combinations, Mr.. Matthewson
held. would be a weakening OF the Sher-
man law. The Supreme Court Of the
United States, he said, had saved the
Sherman act from being unconstitutional
by holding that it applied only to COM
binations that attempted to create monop-
oily. He and President Van Hise of the
University of Wisconsin agreed that only
such combinations should be prohibited
as were contrary to the public welfare.
without trying to define them specifically.
AS to the bill to prohibit interlocking d.
rectorates. he thought the prohibition
should apply only to cases where there
were direct business relations among the
corporations involved. He saw great
evils in permitting interlocking directo-
rates and great disadvantages in pro-
hibiting them absolutely.
Newlands Makes Suggestion.
Senator Newlands suggested that spe-
cihc cases might be referred to the pro-
posed trade commission for decision as to
whether the existence Of an interlocking
directorate operated to restrain trade.
Asked what sort Of q trade commission
he could suggest to carry out the ideas
Of President Wilson. Mr.. Matthew son
said he would not advise that commits
sion be permitted to say In advance that
the government would not object to GER
tain forms Of organization. He said it
might be advisable for a commission.
when it thought a corporation was vio-
lating the law. to investigate and call
abuses to the attention Of the corpora
still a controversy the Attorney General
could look into the case with view to a
suit If the Attorney General disagreed
with the commission his view would have
to prevail.
President Van Hise, also a member of
the commerce chamber committee, said
the high cost OF living was due perhaps
as much to cooperative arrangements
between organizations and individuals as
to the great combinations Of capital to
which public attention and proposed leg
islation were generally directed. The gen.
eral situation. he thought. ought to be
met instead of merely permitting the At
torney General to pick out for prosecu-
ton this or that corporation that might
become notorious. He referred spectfcal-
ly to railroad agreements fixing rates be-
tween certain points.
The only way to get to the root Of the
evil, he said, was to recognize co-opera-
ton and try to regulate it. Cooperation.
he said, was an economical tendency
that could not be checked, and would and
did exis. in spite Of law The ,s, situation ion
law and only a few are selected for
prosecution.
Lippitt Voices His Views.
President Van Hise's suggestion that
definitions ought to be omitted and that
only combinations contrary to public
welfare ought to be prohibited involved
him in discussion with Senator Lippitt.
who thought language of that sort would
be merely transferring the responsibility
Of decision to a commission or court.
That would be simply leaving to some
one else said he, 1.-THE problem Of de-
Gliding the matter which we are charged
with deciding. We are supposed to define
the point at which fair competition ends