South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-03-02
SUPREME COURT
WILL NOT GUST
STEEL COMPANY
CONTINUED FROM PAGE oNEJ

itself" The decision was "A complete
victory for the steel corporation and
its $50 subsidiaries. said TO compose
the worlds greatest industrial com
bination with assets Of more than
two billion dollars. II also dismissed
proceedings against n score Of mill
liouaire individual defendants. in
GLIDING Chairman =. II. Gary. Of
the steel corporation; Charles
schwab. John d. Rockefeller the
late J. r. Morgan, Andrew Carnegie.
. Henry c. Prick and others. Against
these the government had asked in
functions against illegal acts.
Also the decree OF dismissal
marked utter rout for the govern
ment in its suit. which was begun
in 1912 in the New Jersey federal
court and which has been one OF
the longest most voluminous and
costly proceedings in supreme court
annals. The case the records of
which fiji a small room. was twice
argued in the high court, in March,
1917. aid again last October. A truce
suspending action during the war,
was agreed upon In 1918.
withhold Comment.
Although today's decree leaves the
government free 10 bring new pro-
ceedings against the corporation for
specific and present practices deem
ed in conflict with the antitrust
law. department of justice officials
declared no thought had been given
10 future action. Pending study Of
the opinions, Attorney General Pal
mer and other department officials
withheld comment. In its appeal
the government Contended that TO
sustain dismissal OF It's suit by the
New Jersey court would result IN il
censing O. nor m O n corporations
which fall just short OF complete
monopoly and would place the
courts stamp OF approval on devel-
opment of industry by combination
instead of competition.
To sustain its decree that the steel
concern $ a good combination.
controls about half of the American
iron and steel trade, including mines,
mills, railroads, ships and ore fields.
Monopoly, the opinion declared. has
not been achieved. It's power over
prices. the majority also declared. is
unequal 10 its propOrtionate produc-
ton.
Good Conduct Emphasized.
Good conduct Of the corporation
toward it's competitors and custom
ers was emphasized by the majority,
who held it has not oppressed com
petitors or dictated prices. That
conduct Of the steel concern paral-
IeIs the oil and tobacco trusts was
denied by the majority which de
clared the latter had been found
guilty OF illegal practices up TO the
time OF their dissolution, while any
ilIegaIity of the steel combinations
organization were transient in
their purpose and effect" and since
abandoned. In this connection ref
erence was made 10 the famous
Gary dinners" it which steel cor
poratiOn officials met with cOmpeti-
tors TO agree on prices.
Not Punishable
The government. the majority de-
ciared. was reduced TO the sole con
tentiOn that mere size, or bignesS, of
the organization lis an adherence
10 the law" Unused capacity for
monopoly or oppression, the court
held. is not punishable. The courts
duty. il was declared. is 10 punish
and check any violations.
In its enunciatiOns of the new APP
plication 10 be given the Sherman
law regarding the public interest in
each case. the court said.
ct Is clear IN its denunciation of
nonopolics and equally clear i'm its
direction thar the courtsas""'a shall
prevent and restrain them, but the
command is necessarily submissive
TO the conditions which may exist
and the usual powers of Ia court of
equity 10 adopt its remedies 90 those
conditions. . We do not mean
TO say that the law is not it's own
measure and that il can be disre-
garded but only that appropriate
relief in each instance is RENTED
20 "a court of equity TO determine,
not. and let use be explicit in this,
tO advance policy contrary 10 thdt
OF the law. but in submission to the
law and its policy, and i'm execution
of both"
Dissenting Opinion.
I'm conclusion. thhe majority said
they were unable 20 see that the
rublic interest viii be served 10y
WELD ne 90 the contention of the
government respecting dissolution
we do see a risk or
public injury. including a material
disturbance Of. and 10 may be "a
serious detrimeut TO foreign trade.
ON reply the three disseting jus
tees declared that the corporation
violated the law TN its formation
and its immediate practices and.
being former illegally. should bc dis
solved into competitive units. The
lower court. the minority declared.
could FIX the details. IL had been
demonstrated. the minority held,
that the corporation was over
capitalized with 'Watercd stock