The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-08
Attorney-General Gregory
Warns He Will Study
New Corporations.
WILL KEEP Up FIGHT
on BIG COMBINATIONS
Appeal Against Jersey De-
cisiOn i'm L. s. Steel Case
to Be Pressed.

WAsutSGroN. oct. Attorney Cen
eraI Gregory issued a statement to-day,
serving notice that he would scrutinize
very carefully the formation OF mer-
gers In the steel industry such as are
said to be under consideration by Charles
NJ schwab and william +. Corey. It
was intmated that the Government
might proceed under the sherman anti
10 the United States Steel Corporation,
unless the Supreme Court sustains the
decision of the United States Court Of
the District of New Jersey. holding that
this corporation is not in restraint OF
trade.
The Attorney General pointed out that
II the Steel Corporation is to be re-
garded as legal no objection can prop
erly be made against the building up
Of similar combines. lie directed at
tention, however, to the fact that the
decision of the District Court Of New
Jersey in the steel case involves a con-
s,ruction Of the Sherman law In con-
tct with that Of another Circuit Court
in the decision on the Harvester case
and indicated the Governments inten-
ton to combat as strongly as possible
the decision in the case of the Steel
Corporation. Mr.. Gregory attributed the
combinations now in process OF forma-
ton directly to the encouragement tina:
had come from the Steel Corporation
decision.
which IL Aimed At IL Not Clear.
The Attorney General did not make
IL clear which Of the reported steel
merger plans he had In mind In issuing
his warning. Two movements In this
direction have been described In news
paper reports recently. Mr.. Schwab Is
said to have acquired the Pennsylvania
Steel Company and to have been nego-
tiating for the control of the Cambria
Steel Company, with a view OF COM
bining these two big corporations as
the nucleus Of an important new steel
corporation. Almost at the same time
reports have been in circulation to the
effect that Mr.. Corey was looking into
the possibilities Of securing control oi
a number Of small steel plants In the
hope of establishing a new merger, using
the Midvale company as a nucleus.
II has been reported repeatedly tha'
both men would seek the advice OF the
FEDERAL Trade Commission and the At
torney-General as to the legality of theil
plans before entering into any DEFINITE
arrangements. Apparently no formal In
auiries have been submitted to either tho
commission or the Department OF Jus
tce, however.
While the Attorney Generals state
ment refers to definite and circumstan'
tai reports Of a proposed combination
of independent steel companies 1t wa
said at the Department or Justice TO-
night that the Attorney-General mad De
fore him no more tangible data respect
ing these proposals than were conveyed
In inquiries that had been made by news
paper correspondents.
Understood to He Warming.
The Attorney Generals action in com
menting upon theoretical cases is mos
unusual and was construed by many al
a WARNING Here Is the Attorney-Gen
erals statement:
1T cannot be questioned that II III wa
lawful to unite through the United States
Steel Corporation one-half of the com
nalf would also have the right TO com
bine And of course what could be don't
IN the steel trade could be done In ever,
other branch Of trade. thus virtually put
ting an end to competition.
"But the decision of the Circuit Judgel
Of the Third Circuit in the steel case !,
not yet the established law. 1t is be
cause Of just such consequences that thu
Government is appealing from that de
c!son. Besides, In the Harvester case {
court Of equal rank took very differ
ent View of the law.
THE question is now pending befor'
the Supreme Court In the meantime
attempts to combine able and efficien
competitors affecting trade over a Wild
area will be subjected to the closes
srutiny by the Department of Justice"
The Attorney-Generais statemen
leaves no doubt of the Administrations
determination To press the appeal OF th'
decision in the United States Steel cas-
70 conclusion in the highest court an'
n fight hard for the reversal of the de
clsl"n Of the lower court.
There have been reports off and oi
that the Government might not push th
case nut these always have been denies
a. the Department of Justice.