The Birmingham age-herald., 1917-03-05
VICTORY FOR THE GOVERNMENT WILL MEAN HEAVY LOSS Birmingham Scheduled for Many Plants If the Steel
 Corporation Wins 'NO GOOD TRUST"
 IS FEDERAL CLAIM Understood That All Interests Are Eager to Have Situation Cleared
 Up Even If the Decision
 Is Adverse

If the United States government proves that there are no good trusts" which is contended in it's brief filed with the supreme court seeking to have the Steel Corporation dissolved, then Birmingham will be deprived of having sevarl mill lions of dollars spent in improvements by company
 For it has been announced by the Steel Corporation that it will make extensive developments in this district if the at tempt of the government to dissolve it, as provided by the Sherman antitrust act of July ?, 1S90 is unsuccessful.
 On the other hand if the United States Steel corporation can convince the court that it was formed mot for the sup pression of competition and the exploita- tion of the public, but as the result of legitimate development of trade as the counsel for the Steel corporation declared before the supreme court few days ago, then all will be well.
 GOVERNMENT CONTENTION
 In it's brief filed last week. the govern ment contends first. that within the meaning of the Sherman law there is no such thing as good trust" next, the controlling more than half of the output of the trade the object of the United States Steel corporation is to substitute an illegal price regulating organization for the old competitive system; finally that if the consolidation plan of the Steel corporation is approved by the supreme court, there would be nothing to prevent another holding company from consolidat- ing the other 50 per cent of the industry.
 If it be lawful to centralize control of the steel industry into two companies, the brief of the government continues, ii would be equally lawful to centralize con trol of every other industry in two hold ing companies" Such undue concen- tration was the very evil which the act was intended to prevent" was the added comment in the brief.
 OTHER FAMOUS SUITS
 Upon a similar argument, the govern ment won it's suit in 1904 seeking to have the Northern Securities company dis solved.
 In the Standard Oil decision, handed down on May 15, 1911, the supreme court upheld the suit of the government to dis solve the great oil corporation, but de- clared for the first time that each suit brought under the Sherman act should be judged by the rule of reason.'' This, as defined by Chief Justice White, in fixing the ulterior boundaries which could not be transgressed with impunity, was "to leave it to be determined by the light of reason, guided by the principles of law and the duty to apply and en- force the public policy embodied in the statute in every given case, whether every particular act or contract was within the contemplation 1.-the statute"
 It is interesting to know that Judge Harlan, the only judge of the supreme tribunal to be opposed to applying the rule of reason will not consider the case. inasrluch as he has died since 1911.
 While the industrial men of Birming- ham are hopeful that the government will lose it's suit, it is said that regard less of the decision the Tennessee Coal, Iron and Railroad company will be in better condition. It will know where it stands. And since 1911, it has been in state of doubt.