The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-02
BIDS ON STEEL RAILS
MAY BRING NEW SUIT
Palmer Considers Antitrust
Action Because One
Price Was Made.
HINES ENTERS A PROTEST.
Question Of Industrial Boards
Figures Factor in Present
Development.
Special Despatch 70 TEE srN.


WASHINGTON, June IA new steel
trust suit by the Government may result
from the action of six big steel COM
panies in submitting virtually identic
bids for steel rails in answer to pro-
posals from the Railroad Administra-
ton. Attorney-Generai Palmer is CIV
ing the subject serious consideration,
but is not prepared to make any state
ment at this juncture.
The Attorney General. in a brief sub
mitted to the Department of Commerce
during the fight between the Industrial
Board and the Railroad Administration,
made 1t clear that in the view Of his
Department the price stabilization" ac-
ton Of the board on steel ran counter
| to the Sherman law. So far as is known
he has not changed his mind on the
subject.
After the Industrial Board was wiped
out and the price Sterilization pro-
gramme had been abandoned six big
steel companies submitted prices on steel
rails on Independent bidding" on the
basis Of the figures Incorporated in the
agreement between the steel men and
the Industrial Board.
Hines Talks with Palmer.
Director-General Hines has discussed
the situation with tie Attorney General
He has not laid any formal complaint
before the Department OF Justice or
| asked for action. He made public COM
plant against the bills, however, that to
lay reading bore a considerable resem.
blance to the Government complaint in
b. Ia Itx,r t. &t,A
United States Supreme Court.
The Sherman law expressly forbids
| combinations to fix prices, but the situa,
, ton In the present instance is consider.
I ably complicated by the fact that the
prices submitted were previously agreed
to by Government agency created by
| the Chief Executive. In many legal
minds In Washington there In grave
question as to whether action could be
brought
II any definite move is made by the
| Department OF Justice II will probably
wait on the filling OF the vacancy in the
| ONCE OF the Assistant Acknowledgement
| In. charge OF antitrust suits. @. Carroll
Todd. who handled the existing Steel
Trust case, resigned and has been out
of the office for a month. Charles b
Ames of Oklahoma, appointed to sue
| coed him, Is understood to be on his
way to Washington and probably will
take the oath Of ONCE In a few days
Many important cases await his atten.
ton. II 10 possible the vacancy has de-
| layed any announcement by Attorney
General Palmer as to his intentions
| Action Under Sherman Law.
| 1t was stated to-day that any case
bearing upon combinations to fix prices
would be brought primarily under the
original Sherman act.
| The case now In the Supreme Court
the United States against the United
States Steel Corporation, Is an anti
| trust action for the dissolution OF the
steel corporation. The Government los
this case In the lower court severa
years ago and appealed. 1t has beer
pending for three years.
At the opening Of the Supreme Court
/ term in October. 1917. with the country
at war, the Attorney-General asked fol-
postponement OF this and other impor
tant Industrial cases, the trying Of which
might interfere with the speeding up OF
industry. A similar postponement wa.
asked and granted last October. and tn,
case was carried over for a year.