New-York tribune., 1922-09-01
Steel Merger
Violates Law,
Report Asserts
teon,iausd from pasa snd)

tSonuhned rom pagn eno)
par value and s25,ooo,oUO par value of
preferred stock, and owns and operates
plants at Youngstown and Miles, Ohio;
Newcastle and Sharon, Pa; Thomas,
Ala; East Chicago, and Muncie, Ind
and Moline, ILL.,. fer the manufacture
OF crude, semi-fhished and finished
iron and steel products.
"The Inland Steel Company is Della
ware corporation with outstanding
capital stock of over $4,000, 900 par
salue, and operates plants in Indiana
Harbor, Ind, and Chicago, H., for the
manufacture of crude, semi-fnished
and finished iron and steel products.
"Of the thirty-fve or more separate
corporations which will be brought un-
der one control by the Midvale- Repub
lic-Inland merger, The complaint re-
cites the names and locations Of some
twentyone companies controlled by the
Midvale company, some eight controlled
by the Republic company and some six
controlled by the Inland company. Each
Of the three merging companies is in
itself an integrated company, owning
or controlling subsidiaries engaged in
the mining and selling of iron ore, coal
and limestone, and in the transporta-
tion of these raw materials to the
panies, for manufacture into crude,
senai-finished and finished iron and
steel commodities, and each of the
merging companies is an important fac
tor in making the market prices of such
proudcts and commodities in all Sec
tions of the United States, and partic
ularly in the stases of Pennsylvania,
Ohio, West Virginia, Kentucky, Indiana,
Michigan and Illinois.
Tend to Monopoly
3 -"The products Of each of the naerg-
ing companies and their several sub
sidiaries sre in direct competition one
with another in interstate commerce,
and are also in direct competition with
tthe products of other corporations not
effected by the merger, but engaged
in similar lines OF industry.
"The giEt of the complaint is shat
the commission, after preliminary in
quiry conducted by it, has reason to
believe that the merger or consolida-
ton Of these three competing COM
plants of the several merging com
phnies, which will center the control OF
Some thirty-five corporations in one
group, will eliminate competition be-
tween the companies, lessen competi-
tion and restrain trade and tend to
create monopoly in iron and steel
products in interstate commerce, par
ticularly ii. the states o. Pennsylvania,
Ohio, West Virginia Kentucky, In
diana, Michigan and Illinois"
!. Draws Distinction
In his memorandum giving reasons
for signing the complaint Commits
s!onef Gaskill says:
THE Sherman Law is both a declara-
ton that restraint of trade and monop-
oily are contrary to public policy and
prohibition OF the use 81 certain
specified methods Of ACCOMPLISHING
either Of the unlawful objects.
This definition of unlawful methods
is a Limitation upon the scope of that
law. And so, in a great body OF deei-
sions upon the Sherman law, the Judi
cial function is concerned with the
question OF method rather than OBJ
,!ect, to determine whether the method
Under examination is within the li1ni-
tations created by the legislative deh-
aitiohs.
Under the Federal trade commission
act, on the contrary, the question Is
solely related to the nature or charac-
Ter of the object. II that is unlawful
It matters not what the method used to
cAeNohaPiish 10 ileSy DC. lIlS IS Ine
great and controlling distinction be-
tween the two laws
Thomas L. Chadbourne, counsel for
the Midvale- -Republic-Inland steel com
binstion, said in New York last night
that the Federal Trade COMMISSIONS
report, disapproving the merger, would
not halt negotiations.
"Inaemuch as the Attorney General
has reported tavorably on the proposed
merger and ali of the eminent counsel
whose opinion has been sought have
approved the project as entirely legal.
the three interested concerns have
authorized me to announce that they
intend to proceed with the necessary
steps to make the project effective"
Mr. Chadbourne was unable to saw
whether the plan would be consura-
mated in all details as originally
drafted or with some notifications.
Sa-