New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1911-11-01
Government Brings Action to
Have Billion Do|IOr Corpora
tion Declared Illegal.
ASKS ITS DISSOLUTION
Action Is the Most Sweeping
Anti Trust Move Made by
Department Of Justice.

Trenton, N. j., Oct. 27-The govern
ment's long planned suit to break VI
the so called "steel trust" was begun
here in the United States circuit court
1t was the most sweeping anti-trus
action ever brought by the department
of justice.
The government asks not only fol
4he dissolution of the United States
Steel corporation, but for the dissolu
tion Of all constituents or subsidiary
companies which are alleged to have
combined in violation of the Sherman
law to maintain, or attempt to main
tain, monopoly Of the steel bust
ness" There are thirty-six subsidiary
corporations named as defendants.
J. Pierpont Morgan. John D. Rookie
Teller. Andrew Carnegie, Charles M.
Schwab, George w. Perkins, E. H.
Gary, John D. Rockefeller, Jr., Henry
C. Prick, Charles Steele, James Gay
ley, William H. Moore, J. H. Moore,
Edmund c. Converse, Percival Rob-
erts, Jr., Daniel G. Reid, Norman B.
Ream, P. A. Widener and William p.
Palmer are named individually as de-
PENDANTS.
The United States Steel corporation,
Carnegie Steel company, Carnegie
company OF New Jersey, Federal Steel
company, National Steel company.
American Steel and Wire company Of
New Jersey, National Tube company,
Shelby Steel Tube company, American
Tinplate company, American Sheet
and Tinplate company, American
Steel Hoop company, American Bridge
Lake Superior Consolidated
Iron mines, all of which were organ
lied under the New Jersey laws, and
the H. C. Prick Coke company, Ten
nessee Coal and Iron and Railway
and the Great Western Min
Ing company are named as corporate
defendants.
Iron Ore Lease illegal.
The steel corporations lease of the
Great Northern railways ore proper
ties, which the directors of the steel
company formally decided to cancel,
Is alleged to be illegal. This action
Of the directors was taken but few
hours before the filing of the bill
The government acknowledges that
It was advised of the steel corpora
tons intention in this respect, but
states that under the terms of the
lease no cancellation would be effec
tive until Jan. 1, 1915, and there is
no limit upon the amount of ore that
can be taken out in the meantime.
Sensational allegations fairly topple
over each other in the governments
petition, which is an equity proceeding
praying for injunction to estop con-
tinuance of the alleged monopoly and
such other relief as the court may
grant.
The steel corporations acquisition
of the Tennessee Coal and Iron COM
pany during the panic of 1907 is de-
clared illegal and scathingly criticised.
The petition declares that E. H. Gary
and Henry C. Prick misled former
President Roosevelt when they told
him that but little benefit will come
to the steel corporation from the
purchase"
"The president" 1t says, was not
made fully acquainted with the state
Of affairs in New York relevant to the
as they existed. If he had
teen fully advised he would have
known that desire to stop the panic
was not the sole moving cause, but
that there was also a desire and pur-
pose to acquire control of a company
that recently assumed positive posi-
ton of potential competition of great
Took Advantage Of Situation.
1T is certain that the corporation
availed itself of the embarrassment Of
Moore & Schley New York brokers
who had large holdings of Tennessee
stock) at a most critical period and
the hammering of the Tennessee stock
and the threatening of general finan-
cial calamity, to acquire the control
of competitor taking on formid-
able aspect.
"The corporation thus greatly
it's control of the coun-
try's iron ore supply, its predominant
ing position in the South's iron and
steel trade eliminated a competitor
and unlawfully acquired power
which is menace to the welfare of
the country, and should be destroyed"
Reference is made to the Gary din
ners, although not by name, as meet
ings which accomplished more than
written pools or agreements, which
frequently were broken,
Interlocking directorates through
which those in power in the steel cor
poration held positions of influence
on the directorates of other powerful
corporations are mentioned as "a
method more refined, more euphon-
ious, but none the less more effec
tive than pools"