The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-21

tended that this evidence shows with
out the slightest contradiction that nc
artificial barriers exist in the steel trade
of the United States, as the Govern
ment alleges: that for nearly ten years
competitive conditions in this trade
have been ideal. and that under these
conditions new competitors have sprung
up. old competitors have grown and ex-
banded products have improved. prices
have declined and trade has flourished
as never before"
A summary of the argument presents
as the most concise statement OF the
law quotation from Justice Holmes
In Nash VS. the United States as follows
Those cases may be taken 10 have es-
tablishcd that only such contracts and
combinations are within tho act as. by
reason OF intent or the inherent nature Of
the contemplated acts prejudice tho pub
lie interests by unduly restricting COM
petition or unduly obstructing the course
OF trade"
Ten Large Competitions.
1t Ia shown that the corporation has
ten large competitors fully integrated
from tho ore 10 the finished product, with
capital amply adequate to their needs,
and that these competitors have grown
very much faster than the corporation,
In addition there are great numbers OF
smaller competitors which have been
CORE spondlngly successful.
Some of the witnesses said that the
corporation had an advantage over its
competitors in the possession of railroads
for the transportation of Hs raw ma
terials but they admitted that this exist ed
only II the rates were unreasonable. Il
was shown that tho reasonableness OF
these rates has been regularly submitted
20 the Interstate Commerce Comm ssion
and will shortly be determined by this
tribunal created by Congress for that
very purpose.
put Its competitors out of business. II was
SHOWN that Its principal competitors are
proporuonately as well equipped and
financed as the corporation. that while
Y mas some advantages over them they
nave some advantages over II: that il
could not war on one competitor without
involving nj! could not conhne warfare
10 single competitor. a single product or
single locality and that In any warfare
It's loss would be proportionate to theips
Increase in steel Production.
The testimony shows that steel produc-
ton in 1890 had increased 306 per cent
over 1850 In 1900. l55 per cent over
1890 that the majority OF concerns which
could not change from iron to steel and
integrate sufficiently TO control their sup
ply Of raw material failed In business
or were abandoned by their owners. and
that this revolution in the industry. due
10 the Introduction OF steel in the place
Of wrought iron, was the fundamental
reason for the earlier aggregntlons OF
works which took place during the years
from 1895 to 1900
one OF the units formed az the out
growth OF these conditions was the Fed
eral Stee, Company. which acquired ore
coal and coke properties. steel works and
transportation facilities located princi-
p1lly in the region OF Chicago. Judge
Gary was largely instrumental in its or
, gnnlzdt!on. The organization OF the
United states Steel Corporation was
shown TO be essentially developmen,
OF the Federal Steel Company. Its OH.
GERS discovered that II lacked facilities
for manufacturing sufficient diversity
Of products and that the location of its
plants was such that It could not com.
pete successfully for the eastern trad,
or the United States. or reach the foreign
markets. In order 10 overcome these
difficulties, an effort was made to raise
additional capital. but this did not sue
coed
Then prominent men connected with
the Carnegie Steel Company suggested
''''.' '''S eN''Hi SAouiu puS ltS prop
critics and those OF other companies en-.
gagged In different lines OF steel manu-
facture. The story is then presented OF
Charles NJ. Schwab's proving to J. T.
Morgan that only through large scale
production, specialization and the manu-.
facture OF all kinds OF steel could cost
OF production be reduced and EXPORT
business. until then only nominal, be made
successful.
The Federal Steel directors were unanl-
nously agreed that the plan TO buy the
carnegie company was good II It could
be financed. II was the opinion of the