Show r T in T T T FX 1 T Tv v T w T s r ri r s. s 5 STEEL RULED NO NOT TRUST e t a A. A 4 tl a I I HIGH COURT i O. O i K pun PLACED ON COMBINE Four to 10 Three Decision by hy Supreme Bench U Utterly erly Rou Routs ts Government in iii Its Suit Against Corporation By y As Associated ld 1 Pr Press W ASHINGTON March 1 In I-In In Ina a four t to three decision tod today y the supreme court refused to dissolve ti tile the e United States States' Steel corporation and nJ its subsidiaries comprising the s soW 50 called steel trust J The governments government's long fought s suit it for dissolution of the iron and st steel stCl I trade trae combination for alleged violation viola viola- tion of the Sherman antitrust law wa was dismissed with absolution f for r th time the corporation n from all charges nfl Placing cI g. g t Ij c ur rr A AV 7 7 n tb a e l SOfto lon ro 1 le t Ju JuS r. r S Slice lice and ind Associate US C McKenna SIc SIc- Xenna Kenna who announced the majority opinion Holmes and Justice Jus Jus- tice tico Day gave ga tho the dissenting opinion joined by by- Justices Pitney and Clarke Justices and Brandeis took no part the tho former hain having been attorney gen general ral during tho the litigation and the latter ln ha having expressed opinions ions loris en on it before appointment to the bench Corporation Branded Good Primarily tho the decree otC officially brands th the tho corporation as as a good combination with Its legality Further the court held that preponderance derance ranc in Industry of coz corporate rate corn com I I I I I is not alone sufficient cause for their dissolution The court also so gave e a new and r far far- l' l reaching judicial Interpretation or ap apI application application ap ap- pUca lon of the Sherman law 1 gous to its famous rule of or reason in inthe inthe the Standard Oil and Tobacco trust trust- c cases ses b by declaring p public lt must he be considered In In applying the ilaw i law The public Interest It was held would not be bo served and tind nd might aught be in injured injured b by dissolving the tho steel concern minority Hold ni I-ni Violated d Dissolution of the corporation and ami Its principal subsidiaries was urged Inthe Intile in inthe the tile dissenting opinion Tho The minority declared that the law taw was tas violated that there there- has been open notorious and continued violation of C its provisions and that approval of ot Illegally born combinations would practically annul the Sherman law Jaw b by judicial decree Agreeing that mere size sze of 01 a corporation corporation corporation corpo- corpo ration providing Its Us gen genesis sl Is legal is not Inhibited tho minority vigorously vigorously vigor ilor disapproved ed the now Sherman Sherm n law Jaw ruling requiring judicial consider atlon allon of or the public Int interest re Such Ja JR conclusion the they declared n necessarily 1 results In a practical nullification of or orthe the act Itself I YI Victory tor for SOT Corporation I The Time de decision was as a 1 complete victory s for tor the tire corporation and its sub I said to compose the worlds world's greatest Industrial combination with withe withas e as assets ets of or more than It 1 also dismissed sed proceedings against a aI I score core of oC Individual millionaire defend defend- s ands including Ch Chairman ir Elbert rH H H Gur Gary of or the stcl corporation Char Charles cs M. M f. f Schwab John D. D Rockefeller th the late J. J 1 P. Morgan Andrew Carnegie Henr Henry C C. Trick and others Against AS these the tire So government nl had asked In Injunctions inJunctions inJunctions in- in junctions against t illegal al acts r Government Go Utterly d r rAlso Also tho the decree marked utter rout for or the government In its iUs suit which was begun In 1911 In the thc New federal court and which has been one of ot the lon longest est most voluminous and aid most costly proceedings proceedInG's In inn supreme court annals The case records record of at f which fill till a a. small room was twice argued ar- ar ar tu gued d In lit the tho high bight court in March J 1917 and again last a t October A tru true truce c suspending action during the war tar was agreed upon Although today's decree leaves the government free freo r o to bring brins- new proceedings pro pro- pro pro- I s for specific and present pr practices practices c- c tices deemed In conflict with tho the antitrust antitrust anti anti- trust law lass department of ot Justice officials dais declared no thought had been to future action Monopoly lono oIT Contention In Its appeal the government s contended con con- con j tended that to sustain ustin dismissal al ot of its suit by the New No J Jersey court w would uld result in licensing enormous s corpor corporations corpora corpora- ions which Ich fall j Just st short of or com Continued on Page Pasc S r I SUPREME COURT I RULES U. U S. S STEEL COMBINE NO TRUST I By Four to Three Votes Vote Long Fought Cast Is Lost by byI f I- I Government tr 1 V Continued from rage 1 I lete monopoly and anil would place the courts court's court stamp of ot approval al on development develop lc I nic ment t oC of Industry b by combination In- In I of ot competition The Tho majority refuNd referred to President noo Roosevelt's approval of ot the steel corporations corporation's cor cor- acquisition acqui of or the Tennessee Coal S. S Iron ron company compan declaring hI hIiS his hIi S I action while whilo not making that merger merger cr le legal al gave crave e a n assurance urance of ur Its ic legalItY allt In Lii Inthe know from from- his earnestness as we wc know have ap approved approved ap- ap th the public welfare he h. would proved pro of ot nothing that had even en a a. tendency tendency ten ten- dency to Its detriment I To sustain ustain its Us decree that the steel concern is a good combination tho I majority found It controls about half hair of or the American An iron and steel trade Including mines mills mill railroads stops I and ore fields Monopoly the thc opinion declared ha has not been bet achieved Its h ais also o power over prices the majority declared Is la unequal to Its prop proportion proportionate I ate ato production Good Conduct d S Good conduct or of the corporation was emphasized by the majority who held it has not nol oppressed competitors or dictated prices That conduct of or the ho steel concern parallels the tho oil and to tobacco to- to bacco hacco trusts was denied b by the ma- ma which declared the tho latter had been found guilty of or illegal practices while any uny Illegalities of or the steel combination com con organization r- r were tran transient lent In their theft purpose and e effect ct and abandoned Reference wa was mado made to the tho famous Gar Gary dinners at which steel teel corporation officials met with competitor to a agree re on prices pi The rue government the majority de declared do- do dared was reduced to the sole Role contention contention con con- that mere size or bigness orthe of or the organization atlon is is an abhorrence to toS tho i l. law Unused capacity for S monopoly or oppression the tho court cour held la Is not punishable The courts court's dut duty it was declared I is to punish and check an actual violations S tn In its enunciation of or the new application application appl- appl cation to be he given Ahen tho the Sherman Shelman law regarding public interest in each case the court said said- S Court Con Condition cJ It Ion It It Is clear in It its denunciation of or monopolies and equally clear in its direction that thc the courts court shall haJ prevent and restrain them but the command Is b necessarily submissive to the conditions con con- which may exist an and the usual po powers porters rs of ot a n court of or equity to adapt 1 Us Its reme remedies les to those conditions AVo 0 do not mean to fa say a the law lawIs lawis h is not it Its own measure an ana aiM that It Itcan Itcan itcan can be bo ho disregarded but only onh that appropriate appropriate ap ap- ap relief hi lit each instance noo la Is r re remitted re- re 0 to a court o of equity to determine determine determine deter deter- mine not to advance a policy polley contrary conS con con- to that of tho the law Jaw but In submission sub sub- S mission to the law and lt It its policy and andIn andin andin in execution of or both In n conclusion the majority said thc they were ere unable to see that thit the public u interest would be served s by yielding cl to the cont contention of tho the government v L CT inn rn I 1 nl n fl WO e do 10 S see S a risk risk k or public injury r j r In in- in eluding a material disturbance of or and H It may be a serious detriment to forS for for- S eign trade nb entera Charge Violation In i reply p y th tha disMon nf j Justices declared de dO 10 elar f that Ule violated the law in Its formation and Its Its' Immediate Im Jm mediate practices pt and being being- formed Illegally should be dissolved d into competitive com corn e units It had been demonstrated demonstrated demon demon- demonstrated the minority held that the corporation was UI over capitalized with watered stock Jf Ir tho the Sherman la law is to be given gi efficacy c the opinion declared there must be a decree undoing as far us as possible that which has huf been achieved in open notorious and continued led violation vio yb- lation of the law OIl 1 agree Justice Da Day continued that it the act offers ofer no io objection to tom m mere re size 11 of ot a corporation when that size has haa been obtained b by lawful means and developed b by naturalS natural S growth although its ita resources resources capital and strength ma may give ho to such a corl cor- cor l a 1 dominating place S t. t I understand nd the tho reiterated deS de- de S of this court to hold that this power jower muy may not legally be derived cd from conspiracies combinations Hons or contracts In III restraint of oC trade To To permit this would be to 1 n S annul the Sherman Jaw v b by judicial decree x Contend l Act ot Contesting Congesting the majority's s 's interpretation tion flon of or the law Jaw the di dissenters declared that if It chan changes 3 now nrc to be made I in its construction or operation Conis CoiS CUll Con S is gress and anti not hot courts should act i S Both tho the holdIn holding corporation and its hs subsidiaries the thu dl dissenting opinion d declared de do- elated were organized organised in violation violation viola viola- tion of ot the law and un under cr the ma ma- decree are arc made Immune because be cause of or some public reasons requiring such a conclusion I leno know of or no public policy said I Justice JUstic Day which sanctions a viola ion tion 0 of the law nor of any inconvenience enl ence to trade domestic or or foreign which should hould have hae tho the effect of J sf jn ing combinations In an position above e tho the control of oC tho law laws Such a conclusion does oc vio 10 lo lence lonce to the policy which tho the law Is Intended to enforce and ana rc results In Ilta practical nullification of ot the a act t it- it I I el loll 1 S 5 S Steels Go S. S ee 0 Up lip UpOn I On tock Stock Exchange Excl nige I New York March 1 l. Steel Steels and andS I S tilled shares rose I t to A 1 i points on ou the New cw York stock exchange toda today after announcement o of tho decision of tho States Slates court Upholding upholding up Up- holding holdinE the thc organization of oC the United States Steel corporation co |