The Washington herald., 1914-01-01
CONCERNS treat
WITH UNCLE Sam
Four Corporations Consider
Adjusting Alleged Or
ganization Defects.
REPORTS CORRECTED
O&eias Of Department Of Justice Re-
sent Statements Regarding "Peaee-
fuP' Policy Of Adninishatiol.
REPORTS CORRECTED

Department of Justice officials yester-
day deprecated certain statements pub
iished in the last few days with regard
to the policy of preventing antitrust liti-
cation through agreements outside of
courts. which was brought conspicuously
to the attention OF the public when the
telephone agreement was announced. A
report which occasioned especial dissat-
1sfaction was to the effect that no sim
siar agreements were in process of nero-
tiation.
AS matter of fact, II is known that
negotiations with the government look
ing toward the adjustment of alleged de-
1ects In their organization and operations
have been undertaken recently by at
least four big corporations, against which
there are suits pending in the Federal
courts. These are the National Cash
Register Company. the American Thread
company, the American Bill Posters As
sociation and the American Sugar Re-
filming Company.
In addition to these. the United Shoe
Machinery Company. through its legal
representatives, held a series Of confer
ences with officials of the Department of
Justice several weeks ago with the .me
end in view. Later this corporation de-
cided to proceed with the taking of testi-
mony in its defense before the United
States District Court at Boston.
In Preliminary stage.
The negotiations by the four corpora
tons named are as yet in only their
preliminary stage. They consist merely
of discussion with regard to the changes
which must be made in order to satisfy
the government that condition OF COM
petition shall be re-established. None of
the four defendants has signified wheth-
er II will accept these demands and agree
to decree embodying them or proceed
with its defense before the courts.
The fact that the negotiations have been
initiated. however. is regarded as positive
evidence of two things: First. that a
wholesome impression has been made by
the spirit displayed in the letters of the
President and the Attorney General which
accompanied the announcement of the
telephone agreement. and second, that
there exists in the business world a
desire 10 confine its opera
tons within a reasonable construction OF
the Sherman act
An official OF the department corrected
also an impression which he thought had
be n conveyed by reports relating to the
peaceful policy OF the administration.
These reports had represented the policy
as one of compromise. and Furthermore.
the idea was given that officials OF the
department felt free to give publicity to
such negotiations soon after they were
The latter aspect caused dissatisfaction. |
because it produced the fear that IL would |
prejudice corporations against undertak- |
ing negotiations. IN that such action |
might involve the risk OF injuring their |
cases before trial juries in the event that |
the negotiations failed and suits were
fled. Departmental officials regard il as |
nothing less than their duty to withhold |
from the public announcements of such 1
negotiations until an agreement should be |
reached.
Attorney General McReynolds feels he |
has no right under the duties OF his
office to assent to agreements which will 1
cot re-establish full and free competition |
even though such agreements would fore
stall a vast amount of expensive litiga-
ion and procure the lesser benefits to the /
public at a much earlier time.
There are no evidences as yet of a hitch
n the negotiations for the reorganizat ton
'f the New Haven road. which probably |
s the most important case under discus
ion by the department at present. Presi-
lent Elliott. it is expected, will come to
Washington some time next week to lay
'efore the Attorney General a report upon
he consideration by the directors Of the
Dad Of the demands of the government