New-York tribune., 1920-04-29
i. S. Asks Court
For Rehearing
OF Steel Suit
Government Contends De-
cision for Corporation
Would Appear to Conflict
With Reading Opinion
Still Held Illegal Trust
Motion Points Out Tribu-
nails Ruling Conceded
Crime Was Committed

from me Trabune's Washington Bureau
WASHINGTON, April 2S-A rehear-
ing of the suit Of the government for
the dissolution of the United States
Steel Corporation, on the ground that
1t constitutes a trust in violation of
the Sherman law, was asked TO-DAY by
the Department Of Justice in petition
f'led with the United States Supreme
Court.
Ihe government, in it's brief asking
that the case be reopened, insisted that
'he recent decision of the court dcclar-
ing that the Steel Corporation was In
effect "beneficent trust" and not an
illegal combination in violation of the
Sherman law, did not answer the prin-
clpal contention originally made bv
',i ,ne government IN the suit-that the
Hteel Corporation was an illegal com
bination in restraint of trade. The
brief attacked the position of the court
on several grounds.
The government contends there is =
connect between the Steel Corporation
declsion and that in the Reading case.
On this point the brief saws:
'Attenton is called to the likeness
or ,hls case and the principles involved
with the Reading case There the sup
preston of all competition in anthra-
c'tc coal was not attempted. but sup
preston of large competition therein
was accomplished Here permanent
Suppression of competition between the
dominant steel producers combined in
the Steel Corporation is admitted. and
IN addition. its profound influence on
thc outside producers is apparent.
.'crc; as there, the growth has bccp
round not to be q reasonable and nor
nal one. but one which was made on a
vast scale and in manner which was
wild, and to chiefly oain the advantage
expected from the elimination of com
petition existing between the combined
companies.
"The case would seem to fall withip
the Reading case and those cited there
in. and the holding of the Steel Cor
poratlon to be a legal combination un-
der the antitrust act would appear to
contlct with the conclusions expressed
IN this and other DECISIONS"
Decisions Both 4 to
The vote in both decisions was four
to three. In the steel trust case Chief
Justice White, Associate Justices
Holmes, McKenna andAVan Devanter
formed the majority. In the Reading
case Justice McKenna sided with AS
sociate Justices Pitney, Day and Clarke
and dissolved the combine. Justices
Pitncy. Day and Clarke favored the
dissolution of the steel trust.
The brief continues:
while this case has been argued
twice. yet sense of official duty, a be-
lief that the principal point involved
IS really not decided by the majority
OPINION and would require a reversal.
coupled with the belief of counsel that
the effect of the decision is materially
to change and restrict a number of re
cent opinions of this court constituting
the antitrust statute, and may scri-
ously affect other cases still pending.
as we'll as the future enforcement OF
those acts, has convinced counsel for
the United States that their duty re
4uIrcs them most earnestly to ask for
a rchearing.
at is respectfully insisted that the
opinion fails to discuss the question
pressed most strongly by COUNSEL. c.,
that the corporation is a combination
in restraint of trade. The opinion does
hold that the corporation did not
achieve monopoly. That point arises,
however, under the second section Of
the Sherman act. The opinion does not
decide the question raised under the
first section-namcly that the corpora
ton is combination in restraint of |
trade. 1t, moreover, by inference, ap-
pears to admit this.
Apparently, therefore, tho opinion
that a crime was committed /
by the perpetrators of the Steel Cor
poration.
Still Criminal Combination
combination should be not permitted to
continue its suppression Of competi-
-ion between the constituent members
Of the combination. If this was a Grim
NAL combination in 1901 (and the
opinion apparently comedies it, it was
criminal combination in 1911, and it
IS criminal combination now. No
criminal Is exonerated from punish
nent because he makes wise use of
property so acquired. and no criminal
combination should be exempted from
.he pains and penalties of the Sherman
'ct because, after having achieved ,ts
ends, it merely maintains the
sruits Of its illegal acts without seek
ng daily to commit new ones.
The Steel Corporation, therefore. is
combination of combinations, by
which directly or indirectly approx
nately 1870 independent concerns we're
brought under one business control.
hereby giving it not only the assets
md business of that number of pro.
ucers, but the advantage of their elm
nation from the field of competition
/ ne control acquired over the branches
IT the industry to which the combina-
ions particularly related, measured by
he amount of production, extended in
ome instances from so to 95 per cent
" the entire output of the country, re-
ulting in the immediate increase az
'rlces, in some cases double and in
'thers treble what the were before,
'Icldlng large dividends upon greatly
Inflated capital"
Real Purpose to Maintain Prices
Discussing present operations of the
orporation, the brief asserts:
but 1T is urged that the company
as not able to achieve MONOPOLY
lone, but did so by persuading it's
ompctltors to engage in monopoly
through pools, associations, Gary dim
ers and the like, which were transient
horts and abandoned because found
utllc, and which will not be resumed.
That these different pools, etc., were
bandoncd is no evidence of an aban-
of the purpose for which thew
'ere lnaugurated, or Of the discontin-
ancc Of the uniform price main :
enance which was their object
The evidence in this case is that
lclr purpose was to maintain prices. {
he evidence is that though discon-
nued as to formal existence, the ed
catlon- they gave has been so effec- !
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