New-York tribune., 1920-03-02

vestments by the public that have
been invited and are not to be ignored.
Foreign Trade Development
"And what of the foreign trade that
has been developed and exists? The
government, with some inconsistency, it
seems to US, would remove this from
the decree of dissolution. Indeed, it is
pointed out that under Congressional
legislation in the Webb act the foreign
trade. of the corporation is reserved to
1T. And, further, it is said, the cor
poration has constructed company
called the Products Company which can
| be very easily preserved as a medium
through which the steel business might
reach the balance of the world and
that in the decree Of dissolution that
could be provided
"The propositions and suggestions do
not commend thems elves. We do not
soo how the Steel Corporation can be
such beneficial instrumentality in the
trade of the world and its benefcencc
preserved, and yet be such an evil in
strumentality in the trade of the United
States that it must be destroyed And
by whom and how shall all the adjust
ments of preservation or destruction
be made? How can the corporation be
sustained and its power of control over
its subsidiary companies be retained
and exercised in the foreign trade and
given up in the domestic trade? The
government presents no solution of the
problem
Control of Subsidiaries
"The government, however, tenta-
lively presents proposition which has
some tangibility. 1t submits that GER
tain of the subsidiary companies are
so mechanically equipped and so off,
cially directed as to be released and
rcmitted to independent action and
individual interests and the competi-
ton to which such interests prompt,
without any disturbance to business.
The COMPARES are enumerated. They
combination of the old Carnegie Com
pany, the National Steel Company and
the American Steel Company, the
Federal Steel Company, the Tennessee
Company and the Union Steel Com
pany Ga combination of the Union
Steel Company of Donora. Pa, and
Sharon Steel Company of Sharon, Pa,
and Sharon Tin Plate Comoany).
They are fully integrated, it is said; !;
possess their own supplies, facilities
Of transportation and distribution.
lAey are SupJtct only w tie cteei
Corporation is, in effect, the declara-
tion, in nothing but its control of their
prices. We may say parenshetically
that they are defendants in the suit
and charged as offenders, and we have
the strange circumstance of violators
Of the law being urged to be used as
cXpedients of the law But let us see
what guide to procedure of dissolu-
tion of the corporation and the dis
persion as we'll of it's subsidiary COM
panies, for they are asserted to be
illegal combinations, is prayed. And
the fact must not be overlooked or
government calls for not only dis
ruption of present conditions, but the
restoration Of the conditions Of twenty
years ago, if not literally substantially.
Is there guidance to this in the Stan
dard Oh case and the Tobacco Trust
case? AS an element in determining
the answer we shall have to compa re
the cases with that at BAR but this
can only be done in general way.
Refer to Standard OIL Case
"The Standard Oil Company had its
origin in 1882 and thro ugh successive
forms OF combinations ;ind agencies it
progressed in illegal power TO the day
Of the decree, even attempting to cir
cumvent by one Of it's forms the deci-
sion of court against it. And it's
methods in using it's power were Of the
kind that Judge Wooley described 'as
brutal and of which practices, ne
said, the Steel Corporation was abso-
lutely guiltless. And of the practices
this court said no disintercsted mind
could doubt that the purpose was 'to
drive others from the field and to ex-
clude them from their right to trade
and thus accomplish the mastery which
was the end in view
1.-The tobacco company case has the
same bad distinctions as the Standard
Oh case The illegality in whi.h it
was formed continued, indeed pro-
gressed in intensity and defiance, to the
moment of decree. The purpose Of the
combination was signaled to compet-
itors and the choice presented to lnem
was submission or ruin, to become par
ties to the illegal enterprise or be
driven out of the business
''ln the tobacco case. therefore, as
in the Standard Oil case, the court had
to deal with a persistent and sys-