Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-03-10
ARGUMENTS IN PROGRESS
IN STEEL TRUST SUIT
Twelve Hours Allotted To he Divided
Between Government and
Defendant.
TWO JUSTICES not SITTING
McReynolds and Rrandei> Disuuali-
. ned Because of Previous Opinions.
81 Assistant Attorney General Todd
Reviews History Of Comhinat ion.
ny Associated rrcss !

Try Associated rrcSs1
WASHINGToN March e.--ArG um cnts
begun to-day before tho supreme Court
In the governments sui, Ia dissolve tho
United States Steel Corporation wiil hc
concluded next Wednesday, afternoon.
Twelve hours were allotted t" I've
divided between tho eoNcrnmcn, and
defendant.
Only seven Of tho utnc justices arc
sitting In tho ease. justices Erandcis
and McRcynolds retired voluntarily, in
accordance with tho court custom. Tho
former. II is undcrst God. did so because
of public expressions made before his
appointment III writings aud official in
rcstigatlons regarding the so-cal;cd
steel trust. Without comment or
explanation. hc lcf, the bench to-day
when the case was called. Justice Mo
Reynolds. vhilc Attorney -,;cucral. par
;icipatcd IN the Federal prosecution.
which Was begun IN lail. during i'rcs-
idcnt Tafts administration
In opening for tho government. AS
sietant AttorncS-Gcucral Todd rcvicwcd
the organization and Development az
tho early and later combinations IL
recountcd series Of combinations
from 1875 To 1909 in various hraurhc.
OF tho industry hy which 100 indcpcp-
dent units wcrc combined into nine cor
porations. An, hc said. were grossly
orcrcapitalizcd. with enormous stock
distribution Ia promoters J. L. Nor
gan & Co. WAS the syndicate mana ger
for many
immediately af,crward prices rose
-ty@l< -
Mr.. Todd.
Plans Of Andrew carnegie IL extend
competition into lines controlled by the
so-callcd Morgan plants were recount cd
by Mr. Todd. who said the outbreaks of
competition between tho various com ;
binations was prime factor in tho
decision 10 form tho holding corpora
tion combining the actual and threat
ching competitors.
GARY's STATEMENTS
CITED ny MR. TODD
Statements IL that effect by .Iudcc
Gary. chairman Of the corporation. n;
the House steel investigation. were
cited by AIR Todd
Mr.. Todd argued that tho Steel cor
porat'on was "orcv.anttalizcd" a, about
$1,000, 600. 900, and that its stock was
u
ready grossly .uyorcanitalizod. Wacn
Justice Day asked Il there Was amy
proof of the actual physical value Of
properties combined. Mr.. Todd cited tho
Bureau of Corporations report. cs,i-
mating the value between s5uo. 600. 900
and 500. GOO, 600
Justice Hran,icis excused himself
when tho case Was called I; WAS I'M
dcrstood he folt disqualified because OF
opinions he had Expressed before his
appointment
What bearing has ovcrcsni,al.za
ton asked Justice Holmes MIR. Todd
commended IL indicated the intent Of the
organizers.
You don, claim that ovcrcspi,al,sa-
ton is itself violation Of the sherman
act, but only evidence 10 show intent -
asked Chief Justice White.
Yes. TO show that tho intcn, Mas
not benevolent" Mr. Todd answered
Justice pitncy asked why the gov
srnmcnt's suit Was dismissed by the
lower court, MIR. Todd said that thc
New Jersey court decided Tie sherman
law Was not violated unless combina-
tions had power 10 completely control
an industry aud iiN ana maintain
prices without ."-upcration uf COM
10 hAN oN doAiHi\tiio>s
hEEEit E7H SIZE tNn row t:H
Richard : I.tndAbury cou,cndcd ina,
The sherman l;w docs uni prohhi,
combinations mu.sls ler size and power
alone. ;. :.
i'roporii"natc pruvuyj ON by the cor
poiatiou has decreased TO-. nor cent
since 1t was organized rho romb,na.
.iion's proportions Of trade has declined.
impair IT'S power and dominance. ii was
Sa in