NY TIMES REPORTS SUPREME COURT UPHOLDS U.S. STEEL
New York City (JFK+50) On March 2, 1920, the New York Times reported in a front page story that the United States Supreme Court had dismissed the government's lawsuit in "United States v U.S. Steel Corporation."
The suit alleged combinations by "the world's greatest industrial organization" were artificial and designed to restrain competition and raise profits. Four justices went along with the ruling while three dissented. Justices Day, Pitney and Clarke held that U.S. Steel violated the Sherman Anti-Trust Act* and should be dissolved. Two of the justices were "out of the case."
Justice Joseph McKenna** said that dissolving the $2 billion corporation would be "impracticable" and the action "would not be in the public interest."
The Court ruling was made "without prejudice" meaning that if US Steel practiced illegal activities in the future, another suit could be initiated.
The ruling further established that future anti-trust cases would be decided on the "rule of reason" principle--only monopolistic combinations in unreasonable restraint of trade would be considered illegal.
*The Sherman Anti-Trust Act (1890) regulates competition & protects trade and commerce against unlawful restraints & monopolies.
**Joseph McKenna (1843-1926) was born in Philadelphia & attended St. Josephs College & Collegiate Institute (CA). JM served as Attorney General under President McKinley, and associate justice of the USSC 1898-1825).
"Court Upholds U.S. Steel Corporation," Healdsburg Tribune, Enterprise and Scimitar, 4 March 1920. UCR. www.cdnc.ucr.edu/
"Supreme Court Holds U.S. Steel Legal, Public Interest Declared Paramount, May Affect Other Anti-Trust Suits," New York Times, March 2, 1920.
New York City (JFK+50) On March 2, 1920, the New York Times reported in a front page story that the United States Supreme Court had dismissed the government's lawsuit in "United States v U.S. Steel Corporation."
The suit alleged combinations by "the world's greatest industrial organization" were artificial and designed to restrain competition and raise profits. Four justices went along with the ruling while three dissented. Justices Day, Pitney and Clarke held that U.S. Steel violated the Sherman Anti-Trust Act* and should be dissolved. Two of the justices were "out of the case."
Justice Joseph McKenna** said that dissolving the $2 billion corporation would be "impracticable" and the action "would not be in the public interest."
The Court ruling was made "without prejudice" meaning that if US Steel practiced illegal activities in the future, another suit could be initiated.
The ruling further established that future anti-trust cases would be decided on the "rule of reason" principle--only monopolistic combinations in unreasonable restraint of trade would be considered illegal.
*The Sherman Anti-Trust Act (1890) regulates competition & protects trade and commerce against unlawful restraints & monopolies.
**Joseph McKenna (1843-1926) was born in Philadelphia & attended St. Josephs College & Collegiate Institute (CA). JM served as Attorney General under President McKinley, and associate justice of the USSC 1898-1825).
SOURCES
"Court Upholds U.S. Steel Corporation," Healdsburg Tribune, Enterprise and Scimitar, 4 March 1920. UCR. www.cdnc.ucr.edu/
"Supreme Court Holds U.S. Steel Legal, Public Interest Declared Paramount, May Affect Other Anti-Trust Suits," New York Times, March 2, 1920.
Justice Joseph McKenna
C.M.Bell Photo Studios
Library of Congress Image
