New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-13
GARY STOPPED POOLS
IN STEEL, SAYS TEMPLE
MANAGER of Combination Asserts
Agreements Do the Work
Better.
CARNEGIE HAD WHIP HAND
steel Trust Committee Told Be-
fore Adjourning Until Fall of
the Ironmaster's Power
in Trade.
rrron The Tribune Bureau. ]

Iron The Tribune Bureau
washington. Aug. 12.-With the testimony
=, " c. Temple for several years COM
-o,ssjoner Of the old steel pools. which hxed
ices and prorated output, the House com
r,,,,ee investigating the Steel Trust closed
a. nresent hearings here to-day and VIII
not reopen the inquiry until October Is.
NJ Temples story dealt mainly with an
,ient history Steel pools. he said existed
rom 1897 70 1901, and were fairly effective.
IN, he added that there had been no hard
.,d fast agreements between steel men
ssncA 1904 Much 10 the surprise Of the
committee. the witness said that Judge
cary head OF the United States Steel Cor
rrrat!on. was chiefly responsible for the alb
-ogation OF the pooling arrangements.
Judge Gary did not believe in them, said
III Temple. who also volunteered that
here had been no destructive competition
m the steel business during tho last six
vAars
The committees chairman. a o Stanley.
wanted 70 know II "gentlemen's agree
nen-s had not superseded the pools.
7 cannot say. answered Mr. Temple.
gentlemen agreements in my experience
have been much ike gentlemens poker
games, and IN these I have at times suffered
severely There was. after December 1904,
10 fast agreement on prices and distribu-
ZION and destructive competition has not
prevailed since that time
Mr.. Temple was shown a COPY Of the
structural steel agreement inferred into IN
s7. This agreement apporuored TO its
members q percentage OF sales a. follows
The Carnegie Steel Company 49ss per
ranr. Jones & Laughlin. 1878 per cent &
IT, Roberts Company. 11la per cent. the Pas
ssIc Rolling Mil Company o per cent, the
Phoenix Iron Company, per cent: the Jam
rria Iron Company, per cent. tho nj
versal Construction Company. AZ per cent;
The Pottsville Iron and Stesl Company, .
uer cent; the Cleveland Rolling Mil Com
pany. @ per cent
Under the agreement each member Of the
uool vas bound 20 make a sworn statement
NJ IT'S production and shipments each
month II one member produced more than
rs allotted share ne was forced 70 pay a
me OF fve-tenths Of q cent for each pound
u steel shipped over the allotted amount
Firms falling 20 ship I'D 20 their allotted
amount we're paid fve-tenths OF a cent
mound for their shortages. These rates af-
tarvard were changed 70 35-1o0 OF cent a
pound. or s. a ton. A guarantee fund n
RE pool was provided. each member being
assessed originally $3.50 and 500 = month
thereafter
curtaled Production Here.
One portion n the agreement provided
that.
The New Jersey Stee and Iron Company
and The works OF the said New jersey
steel and Iron Company shall remain IN
opera tive In the manufacture ot certain
beams and channels during the life or This
agreement in consideration ~ which the
View jersey Steel and Iron Company snail
receive from this association the sum OF
$500 a month.
Nr Temple produced IN connection with
he structural steel agreement price list
I'm which the country was apportloned and
different prices hXed for various sections.
Under that agreement. we're the mem
hers Of the association able 70 adhere 10
the price hst?'
After the bitter warfare IN the steel
business prior 10 1897 e was difficult 10
hold anybody. but after 1904 7 may say
there was no destructive competition"
NJ. Temple further said there were many
violation Of the pool agreements The
Csrnegie Company. he said, never was
caught violating a pool agreement In
those days. he said. every man in the steel
business carried tOmahawk.
The greatest harmonizer in the steel
business" ne said. was Mr. Schwab.'
Tells OF Carnegie Deal.
Mr. Temple said that before the forma-
Ton Of the United States Steel Corpora
ton. n. c.. Flick had visited J. ?. Morgan
with an option on the Carnegie Steel Com
PAM for $50 Ooo. 900. and that Morgan said
.Ne price was too high: but six months
later ne paid 100000 for the same
property" Mr. Temple explained they
we're preparing 20 give magnificent play
down in Wall Street
Everything was in hand added Mr..
temple. the most accomplished actors,
most expensive scenery and the most fan
tastic costumes we're ready, but they had
70 have d Hamlet. A magnificent plan
had been prepared 70 bake a great plum
pudding, but Carnegie had all the plums. ."
Did Carnegie interfere in the baking"
the chairman asked
oh, no, he merely held on 70 the plums.'
This caused laugh
In the place Il the crazy Dams said
Representative Littleton. they mad to deal
in the play with d very sane ScotchmaI"
Mr.. Temple said half the profits of the
Steel Corporation were produced by the
Carnegie steel plant and that II this prop
orty had not been obtained by the corpora
ton Andrew Carnegie would to-day dom
hsste the steel business Of the country.
Representative Bartlett asked Mr..