The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1911-07-06
STEEL COMBINE IS
REACHING OUT FOR
CEMENT BUSINESS
Report OF Investigation:
Shows Control of
New Rival
ENJOYED
Government Finds Monopoly
Has Advantages in Trans
portation Charges

Washington, ID. C.-lierhert knoN
Smith, Chief OF the Bureau of Corpc.
ration sent to Taft a rcpor,
of his investigations vi the Unitei
States Steel Cogporation-the Stee
Trust. President Taft tnSed Over
the report to Secretary Nagel with in.
structions to make it pubic.
The report shows the trust has /;
monopoly in the following lines o
the steel industry:
A control of more than so per cent
OF the entire raw product of the
United States. This is the unminee
ore and is located in almost ever,
section of the country.
a control OF more than 80 pc
cent. of the manufactured product
under manufactured product
the Steel Trust controls more than a
Per cent of the manufacturing stee
rails; more than 80 per cen of tn,
making Of steel tubes and so per Ger
Of the sheet iron and tin plate bust
ness Of the United States.
That through rebates and othe
manipulations the Steel Trust ha
enjoyed for years privileged servio.
over the railroads of the country. |
fact, that the Steel trust virtual,
controlled the transportation bus.
ness in the United States, bet
steamship and rail, where there wer
blast furnaces.
! That the Steel Trust has, through
subsidiary organizations, got col
troll of the coke and cement cuisines
Of the country.
Five years ago, when the price o
coke began TO advance. there was /;
movement in the mines of Pennsylya
MIA, West Virginia, Ohio and Alaba
ma for the control of the coke out
put. The report will show the Stoe
Trust has been getting control an,
how it was the central figure in tn
movement for control wher the ad
vance vas first noticed.
Cement as Stecl's Rival.
Cement rock is generally found IL
the coal regions. The greater par
of that in the United States wa
found in the mountains of Pennsyi
vania, Ohio. %Indianana, New Yorl
and in the chain of mountains run
ming down from Pennsylvania u
Alabama.
Several. years ago when the frs
cement-block house was constructed
the steel barons" saw a new CON
petitor in the building line. Unit
then most of modern structural worl
was of iron and steel. The cement
block house showed the "barons'
that cement construction would sool
take the place Of steel, or at least BIZ
a competitor worthy of notice. The.
looked to get control OF this ncN
building property. They found it is
their own ore and coke fields. 1t wa.
found in great lelges in the noun
tains of Virginia, West Virginia, Ken
lucky and Tennessee. The Stce
Trust, according to the report, &C
control of the greater part of thes'
lodges.
n1o SnyN1rf will Ia NJ L11Cn hN h
Steel Trust, by various methods. go
control of transportation facilities il
the regions of cement lodges.
Branch of Trust Indicted.
New York City.-Nine Indictment
charging restraint of trade under TIL
Sherman antitrust law, were return
ed by a federal grand jury here lat
yesterday against many association
and a long list of individuals, com
prising the so-called wire trust" at
filiated with the steel industry. Prom
inent among the defense are Herber
pont Morgan, William Palmer, presi
dent of the American steel and wir'
company, a subsidiary of the Unitet
States Steel corporation, and Franl
j.. Gould of New York, president O
the Old Dominion Iron and Mai
works company.
What this suit charges Distric
Attorney Wise said, SIS that trad
| agreement is q restrain of trade" TIL
government does not seek to estab
! fish Il physical merger of the proper
| ties or interests indicted, but a ser
: les of pools to maintain prices AM
apportion territory as an elimination
of competition in violation of TIL
Sherman act.
Some of the evidence presented t.
the grand jury is said to show tina
the steel business in the Unitet
States has been divided by agree
ment into about twenty pools. TIL
pools, it is said, have been formed b,
agreements among subsidiaries o