The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-10-27

incidentally the petition seeks to justify
the position taken by President Roose
welt upon the ground that when T. II
Gary and II. {. Frick called upon him In
situation. On this the petition says:
The President was not made fully ac'
quainted with the state Of affairs In New
York relevant to the transactions as they
existed. Ii he had been fully advised hs
would have known that desire to stop thu
panic was not the sole moving cause Du
that there was also "A desire and purpose Il
acquire the control OF a company that hao
recently assumed a position of potentia
competition of great significance. The
President, taken as he was partially into
confidence and moved by his apprecia tior
OF the gravity Of the situation and the
necessity for applying what was repre-
sented to him to he tho nlyknown remedy
stated that he did not feel it to be hi'
dury to prevent the transaction. The
matter then IN oved rapidly to consumma-
ton.
BANKS MIGHT HAVE LENT MONEY ON Tea
The corpora ton and its powerful
banker allies did not advance the money
or lend the bonds Of the corporation upon
the Tennessee stock. which would have
ISIcNeu MOOTe DCuleN 81 idi as tuc . Ci
nessee collateral was concerned and
which would not have exceeded $1,000 .OOu
or $s,OOO.OOO. They took the position that
nothing would relieve the situation but
the Steel Corporation taking over abso-
lutely the ma jority OF the Tennessee stock
This was done and the corporation ac-
Quired also under the same agreement
additional stock, bringing the entire
amount up to $50. O.374. .s25. leaving out
Gfn " nn1v a
exchanged for the stock it's own bonds on
a basis which paid par in cash for stock
which Gary few days before said was
not worth more than sixty cents on the
dollar.
while as to much Of the situation the
facts are in doubt. 1t is certain that the
Steel Corporation availed itself of the
embarrassment OF Moore 4 Schley at
a most critical period, and the hammering
OF the Tennessee stock and the threatening
Of a general financial calamity, to acquire
the control of competitor. taking on
formidable aspect. BY this purchase
the Steel Corporation acquired Az ,4?3
acres Of mineral lands in Tennessee.
Georgia and Alabama. containing ap-
proximately 900 tons OF merchantab. q
ore and ,2Oo. .OOO 900 tons OF coal. of which
over one-third is coking coal. The pos
sibilities OF the Tennessee properties and
the development OF it's raw material are
immense and greatly increased the con-
troll 10y the corporation over the total
available ore supply of the country.
srrHL's POWER MENACE THAT SHOULD
BE DESTROYED.
The corporation thus greatly strength
ened its control of the iron ore supply
Of the country. it's predominating posi-
tion in the iron and steel trade of the
South. eliminated a competitor and un-
lawfully acquired power which is a
menace TO the welfare Of the country
and should he destroyed
The Government alleges the existence
of numerous pools and agreements ty
which it is charged the defendants sought
to suppress competition, maintain prices
and restrain commerce and trade among
the States and with foreign countries.
II then describes the system Of inter
locking directorates. by which II Is
charged the control Of the corporation
over the business OF the country was
extended to n point never before reached
in the history of the world OF these
directorates the petition says;
In addition 10 pools a more euphoni-
ous. refined, hut none the less effective
method cam. into vogue. Conditions
had so changed az to make the way for
this new procedure easy. When the iron
and steel products were made by indie
pendent concerns. which in their desire
for business broke out from time to time
in sharp competition. the only method
of restraint was an agreement or pool
and this was not always effective. for
they frequently played false to such
combinations.
INTERLACISG pIRECTORATEs.
Under the policy Of the Steel Cor
poratIon there grew up community Of
interest and power to influence action
to "A common purpose never exceeded in
the commercial history Of the world.
There came into existence a system of
interaClng of drcctorates which ON
hrdced almost the entire commercial and
financial powers Of the country. 1t has
been "A constantly growing system since
the creation of the corporation and there
fore the personnel and alliances vary for
tue several years since 1901. but the system
and III" power achieved 10y IL have been
the same down to the present
time"
In a schedule annexed to the petition
are shown the various corporations in
which the officers and directors OF the
st ta"l CORPORATION are also di' e1tors q /.
Baker is shown to be director IN tifty-siN
other companies. among them being
trust companies. seven banks. eighteen
railroad companies. the Pullman Company
and the International Harvester Com
pany. Edmund {. Converse is director
in twenty-eight other companies. includ-
ing many which are large consumers
of iron and steel William T.. Corey was
a director in thirty-two other companies
and John +. Dryden in three large trust
and two banks,
j. p Morgan was a director in fifty one
other companies. including the Pullman
Company and the Western Union Tele-
graph Company. Other directors are
shown TO have had connections with many
interested in the steel and
iron business or powerful in the world
of finance
GREAT AND DANGEROUS POWER.
"Thn possibilities Of power and control
that may thus be exerted over trade and
is inestimable," according
to the Government petition. The
power and control that have been ey-
erted by the corporation, largely through
the grasp Of its tentacles thus thrown out
upon the consumer competitors and
capital, is incompatible with the healthy
life of the nation.
Under the auspices of the Steel Cor
these interests, naturally COM
petitive bur harmonized by this net
work of corporations and overshadowed
and dominated by the power of the cor
arising from its prominence
in the business and the irresistible strength
of it's alliances. come together from time
to time find out the views Of the cor
pOration in respect Of prices and output
and all that hitherto was affected by
pools and formal agreements reach n
common understanding and purpose and
proceed to carry them out
1T il not here alleged that merely
and mutually exchanging