The Birmingham age-herald., 1911-10-27

 ence of their representatives. He stated that said Gary and Prick told him that there was a certain business firm which would fail if help should not be given, and that among it's assets was ma jority of the securities of the Tennessee company. The firm referred to was un- doubtedly Moore & Schley, but it was not true that the assets of the firm were majority of said securities Nor was it true that said Schley had among his as- sets a majority or anything approach ing it.
 ''The President further said in his let ter:
 Judge Gary and MT. Prick informed me that but little benefit will come to the Steel corporation from the purchase.'
 "This statement to the President was q misleading one. The property was very valuable Next 10 the corporation the Tennessee company had the largest coal and ore properties in the United States. A competitor was removed. The corporation in it's report to its stock holders of this purchase said that the terms of purchase were satisfactory both as to price and manner of pay ment; that the purchase of the prop erty promised benefit to the corpora ton and that the Tennessee property was very valuable. The President was not made fully
  in New York relevant to the transac- ton as it existed. If he had been fully advised he would have known that desire to stop the panic was not the sole moving cause, but that there was also the desire and purpose to acquire the control of a company that had re- gently assumed a position of potential competition of great significance. The President. taken as he was, partially into confidence, and moved by his ap- preciation of the gravity of the situa- ton, and the necessity for applying what was represented to him to be the cnly known remedy, stated that he did not feel it to be his duty to prevent the transaction.
 "The matter then moved rapidly to consumIa Iaation. The corporation and its powerful banker allies did not advance the money or lend the bonds of ths corporation upon Tennessee stock which would have relieved Moore & Schley so far as the Tennessee col lateral was concerned and which would not have exceeded six or eight mil lions Of dollars. They took the posi- ton that nothing would relieve the ituatjon but the corporation taking over absolutely the majority of the Tennessee stock.
 This was done and it acquired also under the same agreement additional
 
 stock its own bonds on a basis which paid par in cash for stock which Gary a few days before said was not worth more than 50 cents on the dollar. While as to much of the situation the facts are in doubt, it is certain that the corporation availed itself of the embar- l rassment of Moore and Schley at a most critical time and the hammering of the Tennessee stock and the threatening of a general financial calamity to acquire the control of a competitor taking on a formidable aspect. The corporation thus greatly strengthened it's control of the iron ore supply of the country, it's pre- dominating position in the iron and steel trade of the south eliminated as a com petitor and unlawfully acquired power which Is a menace to the welfare of the country and should be destroyed Alleged Illegalities
 The bill then goes on to allege the for nation of illegal pools known as the
 Steel Plate association, the Structural
 Steel association, the Steel Rail combina- tion, the Wire Rope combination, the Rubber Covered Wire combination, the Horseshoe Manufacturers association, the Underground Power Gable combina- ton, the Weather Proof and Magnet Wire combination, the Land Encased Rubber Cable combination and the Bare Copper w have been illegal agreements to suppress competition and fix prices in the com modities indicated by their names. Combinations other than written pools and agreements, the government charges, were entered into at various meetings One in New York city on January H. 1911, is specified. The governments petition says further:
 "ITnder the auspices of the corporation these interests, naturally competitive, but Eermonized by this network of correla- tions and overshadowed and dominated by the powers of the corporation, aris- ing from it's pre-eminence in the business and the irresistible strength of its al- dances, come together from time to time to find out the views of the corporation i'll respect to prices and output and all that hitherto was affected by pools and formal agreements, reach a common un- 0erstaudng, and proceed to carry them out It Is not fnrein alleged that mere- ly assembling and mutually exchanging information and declaration of purpose amounts to an agreement or combination in restraint of trade. These meetings and their results have gone further. What they actually accomplished shows the great and dangerous power achieved by the corporation through unlawful combi- nation exercised over the trade and com merce of the country. The concerted &C., ton taken has prevented fluctuations in prices and competition
 All the meetings were represented by the iron and steel trade magnates in the United States and fully 90 per cent of the total being represented. A larger percentage of those engaged in the cor poration was never before assembld. At these meetings the delegates went hand in hand, pursuing the same course. At the time of one of these metings, held in New York January Il, 1911, there was not
 in this country a demand for more than 50 per cent of the total producing ca- pacity in the lines of those there repre- scented and there was not enough to go around in the way of division, and there was no way of protecting themselves from competition except by coming to an un- derstanding that each would be satisfied with a proportion of the quota which was understood by all.
 This understanding was carried out to a iedgers nicety and otherwise no compe- tition resulted, for they recognized one another. It was agreed that they were bound to carry out their objects for one another and that the obligation, binding on each, was even dearer than life it. self and that no one of them should act or fail to act, except with a distinct and clear understanding that his honor was involved, and that this was more bind ing on him than any written or verbal