The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-03-30
Outlines Administers
ton Policy Toward
Business
TRUST TEST
is NAMED
Growth Within and
Growth By Combina-
ton Determines

WASHINGTON, March 2s.--Attor.
ney General Gregory's brief in the
Harvester Trust case, awaited with
tremendous interest. because II was
expected to define the present ad.
ministration's working policy toward
all combinations. was fled In SUI
preme court today.
The brief fulnlls expectations.
Probably its most striking feature
u the distinction IL makes between
growth from within" and growth
through combination. In effect, At
torney-General Gregory says that
practically no limitation can be
placed on any industrial institu-
tons growth from within itself, for
that is a proper result OF competi-
ton. II Is reiterated that competi-
ton must be the law OF trade.
Two main considerations, says
Gregory, moved congress to pass the
antitrust act:
First, the desire to preserve in
dustry's competitive system;
Second, the conviction that the
undue concentration of economic
power. resulting chiefly from the un.
restricted right of combination,
threatened that system
Apparently" he says. congress
saw no substantial danger through
the growth g a single business from
within, no matter how large 1t might
become in that way; even though,
for example. through greater EN-
cheney energy or resources, and con-
sequent ability to greater efficiency,
energy and resources, and conse-
quent ability to offer a better grade
Of product than that OF its COM
petitors or the same grade OF prod
uct at lower price, a corporation
might come TO possess the trade to
the very point Of controlling the
market for the time being. Monop-
olistic power SO attained would be
so rare and In It's field so limited
that II might safely be ignored"
But, he says, congress intended
that every combination which inter-
feres or threatens to interfere with
the normal and effective operation
of the law Of competition In trade,
Should be prohibited.
THE international Harvester COM
pany. says Gregory's brief. 10 not
the result of the normal growth OF
a single business, but Is combina-
ticn of able competitors--the McCor.
mick. Deerinx, Champion. Plano and
Milwaukee companies = controlling
an overwhelming proportion Of the
trade, brought together by George
W. Perkins. OF the ]. p. Morgan and
company. "a banker and promoter"
BY single stroke. says the brief,
rivalry was extinguished and q vir-
tual monopoly achieved. Later other
big companies were taken in.
The encouragement cites figures
today to prove the Harvester trusts
arguments that this combination
was necessary to promote foreign
trade. On the contrary, says the
government, the trust probably has
retarded foreign business growth.
The trusts export business In 1912.
instead OF being s50,0o0.00o, AZ
claimed, was s30.755,00o, says the
brief. the difference being In the
business OF the plants In other coun-
tries--Canada. France. Russia. Gef.
many and Sweden. During the i've
ears preceding the combination, II
IL declared. that Mccormick and
Deering companies sales increased
faster abroad than sinoe-l39 por
c. at against 81 per cent
Furthermore. II IA declared that