New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-09
PROBE into US. STEEL ON
Cement Company Says It Don''
mates Railway Situation.
HEARING AT CUSTOM HOUSE
Expert Testifies Big Corporation
Controls Fifteen Billion
Dollars of Capital.

A. o-errnirarv ~ the investigation -
49, r-,i-e6 states Steel Corporation uh"0'
n. recer, provision % Congress inc ~
,,a,s Commercs Commission hello hea -, '
YESTERDAY ~ the Custom HOUSE or
.oonnIa,nt OF the Alpha Portland Ne'l'1' -
cor,nany against the Baltimore Oi'''
Railroad charging rate discrimination
7hs Ainhs company alleged that ths oai
.nore a Ohio gave preferential rates
the Universal Portland Cemen; company
which is a subsidiary OF the United o'a'e'
steel CORPORATION. There are loo o'he'
railroads and corporations mentioned ]"
the complaint. and the present proceeo'"s
,s expected TO disclose for the hrst "iie
The real relations between the railroads enc
the Dig steel company.
Tho controlling power alleged to De e~-
,-,es by the United States steel Corpora
hon was shown by the complainant through
q stafistician. who testified that the ainou''
Of capital controlled BY It through directors
., stock holdings or through a member OF
,he firm Of J. F. Morgan Co. was slS''
OGcoo00o
The complaint of the Alpha company was
outlined TO the examiner by Louis II. Por-
&C. who. with Archibald Cox. represents
ne complainant ..
The United States Steel Corporation
ss.s Mr. Porter. practically dominates the
-syrsve Of the country. and It's tremen-
&c influence has enabled the Universal
-,o-,,a,d Cement Company. Of Pttsburg'
.-tob is owned entirely by the steel cor
-,~s.,c, % OBTAIN more favorable f-eight
-. t,ar csn he obtained by its chief
oo,,,e,,-o- and rival tho Alpha Portland
Cement Company
Charges Unjust Discrimination
barge unjust discrimination In
,-sirb- rates. and back Of II all is the at
tsr,nt 70 drive the Alpha company OUT u
business. COR that Is the logical outcome
unless both companies be placed on oaS's
81 equality in freight rates
II. Gerstell. OF Easton. PENN presi-
dent of the Alpha company. explained that
the rates applied 70 raw material as Wen
&c N the marketable product. He said
..s- rhe favo-itsIn in rates alone could
,coo,,rt for the abnormal growth Of the
r.-,,srss1 company since 1900. while the
Una company was kept practically az a
,,ardstil. Before that year the only COM
-s,ition which ne had 20 face was that OF
,ho foreign companies. Mr.. Gerstell SAID
pr. N. low prices of the domestic product
,.s-e since then excluded all foreign COM
re,tion
Ne described the great growth Of the
cs7,ant Industry which In twenty years in
creased rs production from 100000 tons
vesr 10 175.O0O,Ooo tons. The Alpha COM
tsn4 produced 467.447 barrels in 1900, Mr.
CersteU SAID. while the Universal company
tsd.an OUTPUT OF only S2.443 barrels.
Connection became very acute In 1909
he continued. and when I protested about
mo rae 20 Mr. Gallagher general mana
c.r Of the Baltimore & Ohio. he promised
re fair freight rate. Instead Of raising
tha rate Of the Universal company TO make
70 er-ial with the rate Nc PAID. the rate
,-sr-sd 20 the Universal was lowered. Will.
-, relief was given 70 US SO that the dis
Elimination against Us was larger than be-
tore
Urive-sars Alleged Gain s5oo,ooo.
The e4e,- n this alleged favoritism was
.a~frE 20 tire Universal company OF
s-06 600 N-. CiersteI said. and IL the Uni
,ersal were compelled 10 pay the same
r-.ces For hauling lime rock as mis- company
had % nav. ir would cost about IS cents
moro 20 make O. barrel Of cement than II
oe, the Universal now, he added.
Charles r. sutherland. general freish:
Ken. Of tho Morgantown & Kingwood
railroad Company. was -he next witness.
lfs road it, known as the "Elkins' Line,
ard is practically bottled up ny the Bal
f!rorc q ohio. which connects it with the
We end East
OF think The Influence OF the United
states steel Corporation has much 70 do
With fixing fhe rates which favored the
Universal Cement COMPANY" he said
'iankl,. 20 the surprise OF the railroad men
present
ne testified that ne mad repeatedly tried
70 secure better rates from the Baltimore &
ohio for he benefit Of the shippers over
his fine but his efforts we're IN van. This
hss iol those in control Of the line 70 a
determination 20 break from the "oppres-
,ve tactics and tyranny % the Baltimore
a.. Ohio and 20 secure a connection with the
Vanderbilt roads
Through The testimony Of VI. Coosan
freight manager for tho Alpha company, =
vas brought out that General Manager Cal
larher - ths Baltimore a Ohio once told
III Sutherland that the Alpha company
rad no right 20 intrude into The business
territory Of Pit,sburs
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