The Washington herald., 1920-03-02
Steel Corporation Legdlized
By Supreme Court Decision

on the fact that no evidence was
to show that the Steel
Corporation had been guilty OF un-
lawful acts since 1911. so a
4s-A
OIL Case ReyIewed.
The supreme. court reviewed its
position in the Standard OIL case.
and a majority opinion held that
that case and its precepts were not
applicable in the steel case. The
suggestion Of the government that
the steel corporation could be SO
dissolved that the subsidiary COM
panies could resort TO Independent
action and individual interests FOR
restoration Of competitions without
disturbance to business was re-
jected by the court The compan-
les enumerated by the government,
were the Carnegie Steel company,
Ia combination Of the old Carnegie
company. the National Steel COM
pany, and the American Steel COM
pany). the Federal Steel company,
the Tennessee company and the
Union Steel company, Ga combina-
tion of the Union Steel company. Of
Donora, Pa, the Sharon Steel COM
pany and the Sharon Tin Plate
company, of Sharon, PAD The court
held that these. companies were de-
PENDANTS in this suit against the
steel corporation and charged as
offenders and I'VE have the strange
of violators of the law
being urged to be used as expedi-
ents Of the law"
The majority opinion contended
that the government calls for not
only a disruption of present condi-
tons, but the restoration of tho
conditions of twenty years ago, il
not literally, substantially"
Speaks Of IGary Dfnners.,
Justice Day in the minority decis-
ion declared the record of the case
left no room for doubt that the steel
corporation had violated the Sher-
man act. Referring to the organi-
zation of the corporation through a
combination of $50 concerns" the
enormous over-capitalization Of
companies and the appropriation Of
$lOO,O0O,OO0 in stock to promotion
expenses" the large dividends and
the power obtained, Justice Day
said, led. to the Irresistible con-
clusion that great profits to be de-
rived from uniform control, were
organizations,
and that the contention must be
rejected that the combination was
an unlawful evolution of industrial
tendencies compelling union of en-
deavor"
The now famous Gary dinners"
were held by the minority opinion to
have demonstrated the price control
methods of ,the steel corporation.
If the Sherman act is to be given
efficiency" Justice Day added,
there must be a decree undoing So
far as is possible that which has
been achieved in open. notorious and
continued violation of the provisions
of the law"
Justice Day agreed that the mere
size of a corporation did not con-
stitute an offense so long as no law
has been transgressed in attaining
it.
Interpretation Part of Law.
1T is the scope OF such combi-
nations and their power to stifie
and suppress comr etition and Gre
ate or tend to create monopolies
which, as we have declared SO often
as to make its reiteration monoton-
Gus. was the purpose Of the Sher-
hidu dSl 10 COHutHlH. lHc IIldgOTllN
opinion stated. This statute has
been in force for nearly forty years
1t has been frequently before the
court for consideration. The courts
Interpretation has become a part OF
the law itself. and il changes are
to be made now in its construction
and operation, it seems to me that
exertion of such authority rests
with Congress and not with the
courts
Attorney General Palmer con-
ferred with Judge c. B. Ames, spe-
cial. assistant attorney general in
charge of antitrust prosecutions,
but neither would comment on the
decision. 1t is expected that after
Judge Ames has studied the deci-
sions a statement will be issued.
With the steel trust suit out OF
the way, twenty-nine antitrust
cases-fifteen civil and fourteen
criminal-are pending. Five OF
these cases were instituted during
the past year. The most important
of the pending cases, particularly
those offering features similar to
the ones presented by the steel suit,
are:
Suits against the Reading Com
pany and the Lehigh Valley Rail-
road Company, the anthracite coal
combine. Reargument of the cases
was heard at the beginning of the
october. 1919, term and decision is
awaited.
(Copyright, 1920. by Public Ledger
Company