Evening star., 1922-05-12
WILL PROBE STEEL
E. MERGER PROPOSAL
Senate Adopts Resolution in
Effort to Halt CON-
bination.

Federal inquiry into reported plans
for Il merger of a number OF, the
largest Independent steel concerns, In
cluding the Bethlehem and Lackawanna
companies, was ordered today by the
Senate, in adopting a resolution OF
Senator La Toilette, republican, WIS
consin calling upon the Department
of Justice and Federal Trade Commits
sion to take steps designed to prevent
the combination.
Adoption of the resolution follows
an extended address by Senator La
Toilette attacking the proposed COM
bination which, he said, would give
1t and the United States Steel Corpora
ton virtually complete dominion over
the steel industry. Unanimous con-
sent was given for immediate con-
sideration of the resolution and there
was little other discussion
What RESOLUTION Demands.
The resolution directs:
That the Attorney General of the
United States and the Federal Trade
Commission be requested to inform
the Senate as soon as possible what
steps they have taken or propose to
take to ascertain the purposes and
probable effects of the proposed
merger; what have been the results
of any Investigations which they may
have conducted; and what actions
they have instituted to protect the
public interests.
That the Attorney General be fur
ther requested to inform the Senate
whether or not it is advisable, in his
opinion, to proceed under the appro-
Pirate provisions of the Sherman law
and the Clayton law to prevent and
restrain this impending combination.
Hope that the Department of JUS
tice would be "sufficiently aroused to
enJoin the proposed steel merger be-
Tore it is conSumated" was expressed
by Senator La Toilette in calling up
his resolution.
Fears Competition to Cease.
Asking unanimous consent for i'm
mediate consideration of his reSolu-
tion and to lay aside the tariff bill
temporarily. Senator La Toilette said
that irreparable injury would be done
If the new steel merger was allowed
to be consummated. He charged that
the merger was proposed to place the
entire steel industry In the hands of
two great mOnopolieS and to increase
steel prices.
The purpose of the merger is
clear. said Senator La Toilette. TT
petition now exists in the steel in
dustry and the creation of a situa-
tion where prices may be fixed on
monopoly basis without fear Of de-
lection.
when this has been accomplished
every so-called independent steel
corporation of any consequence in
the United States will have been
merged into one gigantic combina-
tion, and almost the entire output of
iron and steel products will then be
under the control either of the United
States Steel Corporation or of it's twin
brother, yet unnamed"
Immediate Action Urged.
Those behind the merger. Senator
La Toilette declared, believe the Sher-
man antitrust law to b a dead let
ter" He argued that immediate ac-
tion on his resolution was necessary
to prevent the merger. The resolu-
ton would have the Department of
Justice and Federal Trade Commission
. inquire into the merger plans and
advise Congress if any steps are to
be taken to prevent the consolidation.
Senator La Toilette declared that
all of ~the big financial powers were
interested in the merger, although
Kuhn, Loeb & Co., he said, appeared
to be the nominal" financial agent
1.-The consummation of this merger
must be prevented" said Senator La
Toilette. asserting that the United
States Steel Corporation was an IL
legal merger and that the steel and
financial powers now ARE proposing
bringing the other half of the industry
under one consolidated control" He
added that if this were done Gary
dinners will no longer be necessary to
increase steel prices.