The Washington herald., 1920-04-29

absolving the corporation from
charges Of violating the sherman
antitrust law.
The brief fure.s declares:
Say Status Hssx't Changed.
IF the United States Steel Cor
poratlon was a criminal combIna-
ton In 1901, and the brief appar-
entIy comedies that, Il was al
criminal combination in 1911. and q
is a criminal combination now.
While this case has been argued
twice. yet a sense of ofhcIal duty. a
belief that the principal point in
Nolved 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 recent opinions
Of this court constituting the anti
trust statutes and may seriously ar
tect other cases still pending as well
as the future enforcement of these
acts. has convinced counsel for the
Cniied States that their duty re-
quires them most earnestly TO ask
Tor a rchearing.
Calls Main Point DIsreEarded.
1t is respectfully insisted that
the opinion fails to discuss the ques-
ton pressed most strongly by
counsel, o. e. that thee corporation
itself is combination in restraint
Of trade.
"ApDar, ntIy. therefore. the op.aion 4
conceded that a crime was COM
mitted by the perpetrators Of the
steel corporation. The criminal
combination is permitted 20 continue.
however, because:
Mere size is not a violation Of
Because It did not achieve a 100
per cent monopoly.
1t did not Oppress competitors.
several attorney generals failed i
TO file suit. 4
Dissolution involves a risk Of in
jury TO the public interest. Il
Notwithstanding these copsiders-
tiOns we earnestly insist tbst =
criminal combination should be NOT
permittCd to continue it's suppress
sion OF competition between the
constituent members OF the COM
binstion.
Reasons for Complaint.
The steel corporation" the gov
cEhheht further charges. lis a com
Dihation OF combinations. by which
oIrectIy or indirectly, approximately
lsO independent concerns were Z
brought under one business control
thereby giving il not only the as
sets and business OF that number ofS
Producers, but the advantage OF
their elimination from the field of
competition. The control acquired
over the branches Of the industry !
10 which the combinations practi-
cRlly related measured by the
amount Of production. extended in
some instances from SO to g5 per
cent Of the entire output Of the
country. resulting in the immediats
increase OF prices in some cases
double. and in others treble what
they were before. yielding large
dividends upon greatly inflated cap
itaI"
The GOvernment's brief claimed
that the courts refusal to dissolve /
the Steel Trust is in direct conflict
with its action Monday in breaking
up the Reading railroad coal COM
bine.
Discuss "PerSuasIVe Methods
But il is urged that the COM
pany was not able to achieve mo-
nopOIy alone. but did so by persusd-
ing its competitors to engage In
monopoly through pools, assOcia-
tions, Gary dinners. and the like.
which were transient efforts, and
abandoned because found futile, and
which will not he resumed the
brief continued
The fact that IL could persuade
its competitors to enter into these
illegal combinations is most
pregnant evidence Of power. With
the Carnegie group. the Morgan
group. the Moore and Reed group.
and Gates and Gary group all com
bined in one holding company-the
steel CorporatiOn-and thus pooling
the several competitive corporations
under the dominance OF ono price
fixing power. is it remarkable that
the uncombined units should have
welcomed any system that would
keep down a conflict Of prices with
the enormous financial strength or
the holding company"
Combination a PooL
But the one thing that stands
out is the nature OF the steel cor
poration as combination. II is
confessedIy not the growth OF an
industry; II is not an industry: AZ
is not a steel manufacturer; IL ts
confessedly a pool Of certain com
petitIve. industrial, integrated units;
il pools the sale and distribution OF
the products OF these otherwise
Ieompetitive plants and controls the
extent OF their aggregate and rela-
tive production: IL suppresses cons
petition between from 90 to 50 per-
cent Of the steel producers"