The Birmingham age-herald., 1918-08-09

trust law, went out of their way to state that the evidence in the case saowed that there had been no injustice done and no suggestion of an intent to make use of the power the trust possessed. But there did turk in the organization power which might at sometime be un- justly used. One of the three judges did not concur in this opinion. When the appeal was made to the supreme court hy the Harvester company, it was found that the company asked for a reversal of this decision on the ground that the government had not shown that the Har- vester company had made unlawful use of it's power. The government contended that his defense crystalized the issue into single point; namely, whether IL is necessary to wait until corporation has made unlawful use of its alleged monopolistic power before taking gov ernment action or whether the govern- ment should interfere so as to prevent at the outset any unlawful use of that power In plain English, this meant that the government claimed that under the Sherman law it had a right to pre- vent monopolistic control and so to act judicially as to secure competition.
 YIELDING A POINT
 The Harvester company has apparently yielded the point. The appeal to the su- preme court is to be dismissed and some of the subsidiary companies of the liar vester company are to be d1sJointed ana then nut upon the market.
 The wonder is whether there may not follow this yielding to the government | by the Harvester company situation similar to that which arose after the Standard Oil company was, by mandate l of the supreme court, dissolved.
 Perhaps competition may follow the description of the Harvester company. but in the Standard Oil case the dislo- ca ton of several of the subsidiary con- panies was followed by appreciation in the market quotation of the securities, and if there has been competition. 1t has not beene revaled in any reduction of price as to the commodities manufac- tured by the oil companies. Prices have steadily advanced, although this IS m part explained by the great demand made 1 by the government and by industries TOT l oil products.
 CAN THEY BE SOLD?
 | When President Elliott agreed with the department of justice to break up the l New Haven railroad system and to sel 1 the properties which the government de- 1 cided should be taken from the cQntro ] of the New Haven, the. wonder was whether any market would be found fol l these properties. None has been found as yet, and it has been necessary to secure
 authority for postponing the sale of tho properties so that customers may be se I cured. Who is to buy those subsidiary companies which the Harvester company has now agreed to part with. Will II be the officers and managers or tnes' jcompanies? They must be sold Anf the Harvester company will endeavor tt make good as far as possible the ios
 of these. subsidiary companies by con l fo rtY nnaT4 tions upon commodities hitherto no prominently associated with the product of the company.
 STEEL CORPORATION
 One of the first questions asked afte
 announcement was made that the liar
 vester company and the department o Justice had reached a compromise where
 by the litigation would be ended. wa
 this: Will the United States Steel cor
 poration take a hint from this actio
 and try to reach an agreement with tn
 department of justice which would max it unnecessary to continue the proceed lings before the supreme court? It ha
 been the belief since the government
 brought it's action against the Unite States Steel corporation that the depart ment of justice would be satisfied If tn
 United States Steel corporation were
 give up it's control of the Tennessee Cos
 and Iron company.
 The opinion today is that were thl
 to be done the government would witt draw the case now pending before tn
 supreme court against the steel corpors tion. This corporation has put million | of fresh capital into the Tennessee Cox
 and Iron company It Ia known that
 is the purpose of the managers of tf
 steel corporation greatly to increase tf J investment of capital in the Tennesst
 Coal and Iron properties. in case u supreme court should decide in favor
 the corporation. But if there should