Evening star., 1926-04-18


was involved"
This does not mean" he added,
however. that there will he any de-
crease of effectiveness in the en-
fprCment of the law. On the con-
trary, it means that substantial COM
plants will he investigated and vio-
lations prosecuted with greater effect,
ina asmuch AS time and effort will not
be diverted to the pursuit of futile
Investigations of unfounded COM
plants"
The present activity of the depart
ment he explained has been directed
mainly against what are considered
the necessities of life, monopoly
in the control of which would work
harm to the people at large. Proper
restriction of illegal combinations in
restraint of trade, especially in the
necessities, Col. Donovan believes,
will be reflected eventually in more
justice to the people as a whole. more
contentment in the homes of the
Nation.
The present year is not only likely
TO be unusual for its mergers. in the
opinion of Col. Donovans first assist
ant, A. F. Myers, special assistant to
the Attorney General. but presents
more puzzling questions for the Gov
ernment.
Facing New Problems.
Notwithstanding all the legislation
on the trust problem" Mr.. Myers re-
| Gently told a subcommittee of the
House committee on appropriations,
"and all the years of endeavor in
| enforcing antitrust laws, / think 1t
must be recognized that we are just
on the threshold of the trust problem.
You cannot pick up a paper with.
| out reading of some merger in bust
ness. and, as you know, unless 1t
| appear that the merger would result
in restraint of trade within the de-
cision in the steel case, or unless 1t
is brought about by stock acquisition
which results in elimination of COM
petition between two companies within
the meaning of section Z of the Clay.
ton act. there is not now any legis-
lation covering the situation.
Congress did legislate on the sub
ject of mergers in section of the
Clayton act" he explained. when II
provided that no corporation engaged
in commerce should acquire all or
any part of the capital of another
corporation where the purpose or eff
feet might be to eliminate competi-
ton. But we find in practically all
these recorded instances at the pres
ent day that the compa MES buy not
the stock of each other but the
physical assets, and that, of course,
takes the transaction out of section
Z of the Clayton act.
Burdens Are Increased.
THE trend toward combinations
and mergers increa ses our burdens
greatly. even though it is not reflect
ed in the number of cases brought.
AJit yrh
read of one of these transactions in
the newspapers or other publications
to satisfy ourselves whether it pre-
sents a possible violation of the anti
trust acts
But for the reasons I have out
lined. the result in the most instances
is negative; and so l say that prob
lem is still in the air.
Whether the people of the coAlntry
want Congress to provide against
that sort of merger is something out
side of our province. I know that we
have been criticized to some extent
for not meeting that problem more
effectively, but, with the arms at our
command, I think we are doing every
thing the law enables us to do In
meeting the problem, and l think we
are doing it in a fairly intelligent
way"
What budding mergers are under
investigation by the Department OF
Justice, or which ones Will likely be
the first to be charged with violation
of the law, are known only to Off
cials of the department and the con-
gressional committee which has been
furnished with confidential list OF
the Investigations under way.
There were 173 Investigations made
during the last year, Mr.. Myers re-
ported.
Business Rivals File Complaints.
When asked from whom the com.
nlaints come, causing Investigations
by the department. Mr.. Myers said
that business rivals" often make
such complaints, and consumers who
feel they have been unfairly treated.
THE Department of Justice mail
every morning. he said. contains
great many letters from all sorts Of
persons complaining of violations OF
the antitrust laws
Both the Federal Trade Commits
sion and the Department OF Justice
unearth evidence which may later on
lead to antitrust proceedings in the
courts. Mr.. Myers explained. but made
il clear to the committee that inves-
tisations made by the commission
for it's purposes need to be re
checked"
I'VE really need to make y new
investigation of a somewhat different.
kind" he said, before we can de-
termine whether or not the sherman
law has been violated
Perhaps the most conspicuous re-
cent instance Of difference Of opinion
between the commission and the De-
partment of Justice was in the case
of the Aluminium Company of
| America. The commission had re-
ported the aluminium company for
violations of the consent decree OF
1912 against the concern. but after
extensive investigation Of its own the
Department of Justice found lack OF
suf1cient evidence upon which to base
| citation of contempt against the
company.
Mellon Not In Control.
1t further found that Andrew w.
Mellon, Secretary of the Treasury,
| and his brother, r. B. Mellon. did
! not constitute a control OF the COM
many. The commission, however, still
has under investigation issues involv-
| ing the policy of the Aluminium Com
panv of America in connection with
it's manufacture and sale of aluminium
sand castings and it's policy with re-
gard to the purchase of scrap alumni
nun. No reference was made by the
Dena rtment of Justice in its report
TO these additional matters which are
still pending in the commission.
Senator King, in his forthcoming
criticism of the present system, In
dicates he will charge that there have
been more mergers in the past
or s years than in any 10 or IL
years previously, and that trusts,
mergers and trade associations today
substa ntially control all the neces-
| stiles Of life. Under Senator King
pending bill any monopoly agreement
or understanding which potentially
| could restrict prices would be dealt
| y.AlACa nf the "TAa.