The citizen. [volume] (Berea, Ky.) 1899-1958, 1922-05-18
Proposed Merger Of Independ-
ents Attacked by La Toilette
as Conspiracy.
DEMANDS IMMEDIATE ACTION
His Resolution Directing the Attorney
General and Federal Trade Com.
mission to Get Busy Is Adopted
Unanimously.

Washington, May 10.-linmeuihte
action by the government to stop the
merger of steel companies under the
lead of the Bethlehem and Iackn-
wanna concerns WIS demanded by the
senate In adopting the La Toilette
resolution directing the attorney gen.
eral and federal trade commission to
act.
The resolution was passed by unnni-
nous vote after Senator La Toilette
had explained the nature OF the pro
posed merger md related the steps
taken by the steel companies to com
bine lie quoted numerous financial
papers To- prove that formation Of the
combine already Is under way.
Text Of Resolution.
Ihe resolution directs:
THAI the attorney general and the
federal trade commission he requested
To inform the senate as soon as pos
slble whnt steps they have taken or
propose "a tnae to ascertain the pur-
poses and probable fleets Of the pro
posed merger: what have been the re-
suits of an investigation which they
may have conducted. and what actions
they have Instituted To protect the pub
lie interests
THAT the attorney general be
further requested to inform the senate
whether or not Il Is advisable, In his
opinion to proceed under the appro-
pirate provisions Of the sherman law
and the Clayton law 10 prevent and re-
strain this impending combination"
senator La Toilette declared that II
the merger Is formed the entire steel
industry will be In the hands OF two
large concerns the nited States Steel
corporation and the new combine.
These two concerns. he said, would be
able 10 fix prices ON every product OF
the steel mills The time to prevent
the merger. he said. was now before
II became really effective. He assert
ed that unless the attorney general
moves quickly Il will be too late. add
ing:
This Is the are Of steel Iron and
steel he NJ the base Of every human
activity. Without steel our farms can
not he cultivated. or railroads would
cease to operate. our industries would
be Frustrated and our homes could not
be built.
The men who control this basic
commodity control the nation. A little
more than twenty years ago they Sc
cured complete ontrol of one-half the
steel industry by the formation Of a
corporation so great that II staggered
the nation. They could control the
other half OF 'he industry only by
agreements and understandings with
the so-called Independent companies.
Would Dominate Industry.
These agreements arrived at
through the medium OF Gary dinners.
worked well during the periods Of
prosperity, but hey were inconvenlent
and, like all gentlemen's agreements
were apt to be broken when In periods
OF depression there was scramble for
business.
To-day they are proposing to bring
the other half of the industry under
one consolidated control so that In fu-
ture instead OF one rating through the
medium OF understandings to which
there were a dozen or more parties
they will be able to make firm and
binding contracts through the two
great corporations which will dominate
the Industry.
Gary dinners will no longer be nee
essary. Instead. the heads Of the two
great corporations will be able to sit
down at lunch table and without
fear Of detection. fix the price OF every
pound Of steel sold In the United
States"
Senator La Toilette quoted newspa-
per reports to show that Kuhn, Loeb A
Co. are the fscU agents In the pro-
posed merger, and identified them as
having been associated with J. q. Nor
gan 4 Co.. First National bank, Ma
tional City bank, Lee Higginson 4 Co,
and Kidder. Peabody 4 Co. In the pro
motion of the United States Steel cor.
poration. lie declared that the latter
corporation does not object to the for
nation of the new trust.
"