United States Steel: A Corporation with a SoulCotter, Arundel
History
United States Steel: A Corporation with a Soul
Cotter, Arundel
United States Steel Corporation
“For of the conduct of the Steel Corporation, the views of its
competitors are the best gauge. Monopoly and unreasonable restraint
of trade are, after all, not questions of law, but questions of
hard-headed business rivalry, and whether there is monopoly of an
industry, whether trade is subjected to unreasonable restraint, whether
there is unfair competition, are facts about which business competitors
best know and are best qualified to speak. And it may be accepted as a
fact that where no competitor complains, and much more so, where they
unite in testifying that the business conduct of the Steel Corporation
has been fair, we can rest assured there has been neither monopoly
nor restraint. Indeed, the significant fact should be noted that no
such testimony of acts of oppression is found in this record as was
given by the competitors of the Tobacco or Standard Oil companies in
the suits against those companies. We have carefully examined all the
evidence given by competitors of the Steel Corporation. We have read
the testimony of customers who purchased both from it and from its
competitors. Its length precludes its recital here, but we may say its
volume, the wide range of location from which such witnesses came, and
their evidently substantial character in their several communities,
make an inevitable conclusion that the field of business enterprise in
the steel business is as open to, and is being as fully filled up by
the competitors of the Steel Corporation, as it is by that company.”
Next the Court turns to “that most injurious feature of monopoly’s
wrong to the public, to wit, increase in the price of its product or a
deterioration in quality.” It disposes of the question of quality first
thus:
“No dispute arises under the proofs. They are simply uniform that, both
with independents and the Steel Corporation, there has been a steady
bettering of quality in steel products.”
The question of prices it discussed at some length and intimated that
there had been no evidence presented to show that the Corporation
had unduly raised prices, while a large number of steel consumers
had agreed in testifying that active competition in prices for steel
existed between the Corporation and the independent companies, which
would alone indicate that prices had been only such as ordinary
business practice warranted. The Court added: “The Steel Corporation
has adopted a policy of price publicity and adherence, somewhat
analogous to the freight-rate stability followed by the railroads under
the directions of the Interstate Commerce Commission.”
Public-domain text, read in full here on John Shaqi.
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