New-York tribune., 1922-05-13
Senate Calls
For Facts on
Steel Merger
La Toilette Resolution De.
manding Information OH
Federal Action Passes
Without Recorded Vote
Monopoly Is Alleged
Wisconsin Senator Wants
Attorney Generals Opin-
ion on Stopping Deal

From The Irtbu1,e's Washington Bureau
WASHINGTON, May 12-Without
&c ;ord vote, the Senate to-day adopted
| the La Toilette resolution calling on
the Federal Trade Commission and the
Department Of Justice to inform the
Senate what action has been taken or
is proposed with reference to the new
merger of seven or more of the lare-
est iron and steel corporations. The
resolution calls for the opinion of the
Attorney General as to what can be
done 20 prevent the merger beinr ac-
co2rnshed.
/; Senator La Toilette. pointing out
that the merger would in all probabiI-
! ity soon be consumnated if the Gov
; ernment did not act. declared that only
/ by prompt action "can the nation be
saved from irreparable injury" He
| charged that the interests shat con-
troll United States Steel are supporting
the merger.
| In an address Of considerable length,
Senator La Toilette went into details
of the proposed merger and quoted
from newspapers reports in which
Thomas L. ChaGbourne said he felt
sure the merger would be accom-
plished and that a company second in
size only to the United States Steel
Corporation would be formed. The
Senator called attention to the fact
the Bethlehem Steel Company is ex-
pected to enter the merger eventually.
Says Monopoly is Sought
"The purpose Of this merger is
clear" said Senator La Toilette. at
is the elimination of whatever compe-
tition now exists in the steel industry
and the creation of situation where
E, prices may be fixed on monopoly
basis without fear of detection"
He added that lately there had been
some competition in the steel indus
try, that this had "greatly discom-
moded the steel magnates," and that
they, believing the Sherman law dead
letter, had determined to eliminate
this competition by bringing all the
so-called independents together in one
great combination where they will no
! longer be tempted to cut prices in
! order to keep their plants in opera
ton"
Once competition is eliminated. as
pictured by Senator La Toilette. the
heads of the two great consultations
will sit down together and fix "monopo-
ly prices" He held that in view of
the decision Of the Supreme Court in
the United States Steel case it was
highly important to prevent the mer-
i ger being consummated
"The men who control this basic
commodity control the nation" said
the Senator. "A little more than
twenty years ago they secured COM
plete control of one-half the industry
by the formation of corporation so
great that 1t staggered the nation. They
could control the other half of the
industry only by agreements and un-
derstandings with the so-called indie
pendent companies. These agreements
arrived at through the medium of the
Gary dinners, worked we'll during the
periods of prosperity. but they were
inconvenient, and, like all these gentle
mems agreements, were apt to be
broken when in periods Of depression
there was scramble for business.
Sees lue Control Planned
To-day tAky are proposing to bring
the other HIS! Of the industry under
one consolid,sed control, so that ir
future, inste~i Of operating through
the medium o Understandings to which
there were dozen or more parties
they will be able to make firm and
binding agreements between the two
great corporations which will dominate
the industry. Gary dinners will ne
longer be necessary.
"For generation the Department 0,
Justice in its administration Of tn,
Sherman antitrust act has proceeded
upon the theory Of locking the barn
door after the horse has been stolen
They have permitted great trusts ane
combinations to be formed and become
q part Of the commercial life Of tn,
nation and have then sought by in
effectual processes to secure their dis
solution. Eve when the courts hav'
ordered dissolution. this method ha
been ineffective. Even il the processe
of dissolution had been drastically ap
piled by the courts it would have bee,
without avail, for when competitio,
has once been suppressed in m indus