New-York tribune., 1911-10-27
HISTORY OF CORPORATION
Petition Says capitalization Was S60OOO00OO
in Excess of Value.
~RASIS OF PROFIT FICTITIOUS"
Declares 1t Subjected Public to Conditions Which Could
Exist Only by Abuse

COMPANY as customers on account II their
being closely affiliated through a common
7 control
The American Steel and Wire COMPANY.
which w its beginning enjoyed a practical
MONOPOLY N wire products. and subse-
quently had acquired iron and coal prop
critics and vessel feet was mainly de
pendent on other producers for the steel
oinets used IN making its product The
National Tube COMPANY. which az its
t4rms tor controlled the greater part Of
me production Of wrought pipe and tubes
! ir the United States. purchased 2 very
/ large part or Is crude steel
The American Sheet Steel Company, the
/ American Tin Plate Company and the
American Steel Hoop Company were only
partially protected as 70 obtaining their
/ raw material through a common control.
There was general movement upon the
I part Of these concerns 10 control their raw
material and all stages Of the manu-
facture Of their products
Planned TO Make lss Own Steel
I For example. the American Steel and
/ Wire Company, whose constituted con
Germs had largely patronized the Federal
pany planned IN 1850 to make It's own iron
and steel The National Tube Company. a
/ large customer OF the Carnegie company,
proposed 70 erect additional blast furnaces
ana steel works. The American Tin Plate
company. the American Sheet Steel Com
pany and the American Steel Hoop Com
pany. large consumers Of the Carnegie
! company and others makers OF steel. were
rapidly making themselves Independent
I through the increase OF the crude steel
capacity Of the National Steel COMPANY,
which secured extensive ore and coal prop
critics and a feet Of lake ore vessels
Thus competition under old methods Of
doing business having been restricted and
in some products almost entirely destroyed,
threatened 70 make z new way and re-
establish itself in vigorous light The lead
~ H. 60 -
/ ing down Of the restraints upon trade and
the overthrow Of the partial or complete
mOnCpO.ies which they had stablished
| The Carnegie company and the federal
former customers becoming their rivals
Both OF these companies rcck steps look
T ing 70 the manufacture OF finished prod
ucts, such as structural material tubes
and universal plates.
About the close OF the year 1910 the car
negie interests announced that they would
erect an immense tube plant az Ccnneaut
on Lake Erie. a period Of greater com
This announcement brought affairs - 2
crisis. A battle OF the giants vas dis
cussed IN the daily press and in the trade
II each Of these actual and prospective
competitors had worked out its own destiny
in trade, commerce and production, un-
obsructed By combinations or agreements
entered into for the purpose ot restrain
ING competition and trade and commerce
among the states and between the states
and foreign countries, new plants would
have been established, and such trade and
commerce would have developed under
different conditions, and free from re-
straints which, as viii be shown, we're In
posed with the purpose and effect of IN
duly restraining such trade and commerce
and raonopolizing IN part such trade and
commerce
An opportunity was offered through
further Consolidation and restrictions Of
trade and commerce, for enormous prolts
as a reward for effectinE the combination
and as result Of the fctation of inflated
stocks On account Of It's announced pur,
pose which contributed largely toward
rreeipitattrE the crisis and also on ac-
count OF its great strength. j. was mani
fest that ~ order 70 form ~ effective
combination II was necessarT 70 control
the Carnegie company
Considering the magnitude Of the entire
undertaking, Il was carried 70 conc!us-cn
With 1IrrrsCe6ented swiftness Within four
months from the announcement b. The
! Carnegie Company Of ITS purpose % eZ-