Milford chronicle., 1911-11-03

OF STEEL TRUST
Government Files Suit in TTel-
ton Court.
ACTION CAUSED SURPRISE
Corporation Directors, to Avoid Suit,
Had Voted to Give Up Lease on Ore
Lands and Lower Railway Rates.

Had Voted to Give Up Lease on Ore
Lands and Lower Railway Rates.
Dissolution of the United States
Steel Corporation and it's subsidiary
companies wa sasked by the govern
ment in a suit filed in the United
States circuit court in Trenton, n. J.
The petition charges that the steel
corporation is an illegal combination
in restraint of trade and, therefore,
! prohibited by the Sherman antitrust
law.
The petition was prepared by Jacob
NJ. Dickinson, former secretary of
war, who has been retained by the
government as its special counsel in
this case.
This sudden and surprising action
by the government-one OF the most
important trust actions ever attempt. |
ed-came simultaneously with the de. |
cision of the board OF directors of the |
Steel Corporation in New York to can.
Gel its lease OF the Great Northern
iron ore properties in the Lake Su-
periOr region, and to reduce the rates
on ore on the two railroads in that re
giOn controlled by the trust. The ac.
tion of the board of directors was
taken as an effort to forestall a suit
by the government under the Sherman
antitrust law.
The petition filed by the government
in Trenton charges the Steel Corpora.
ton and those subsidiaries which are
named as defendants with maintaining
OF attempting to maintain. a monopo
ly in the steel business.
The evidence upon which the suit is
brought was obtained by the special
Of the department OF jus.
tice
It is understood that some of the !
testimony which was given before the !
Stanley investigation committee OF q
rational house of representatives was !
lsed, in part, at least, as the basis Of
his suit. The petition is in equity and e
vas filed in the circuit court d
It contains the usual prayer for in. Il
unctions to restrain the defendants c
rom continuing the monopoly alleged Il
nd asks for such relief as the court
lay grant.
As soon as word was received at
le department of justice that the bill
ad been filed. the following statement Of
as issued: "
"A petition was filed in the United di
tates circuit court at Trenton. n. J, cl
5ainst the United States Steel Cor
'raticn and its subsidiary companies ht
larging them with being an unlawful in
mbnation in restraint OF trade and
monopoly. or attempt at monopoly. ca
The petition was prepared by J. ST
Dickinson, former secretary OF war, til
no was some two months ago re 20
lned by the attorney general for the
rpose of making careful examina.
N of all the evidence which had
en- collected by the department OF s.
;tice. together with that taken bv ev
2 Stanley committee" de
The United States Steel CORPORATION ac,
eel trusD was organized Feb. 25. We;
u, with a capitalization of S1.4oO.
1000 tincluding bonds) This mark the
the last step in the long struggle Yo
unity in production and selling
ich began with the rail pool" OF
z.
he constituent companies, all OF bie
.ch were organized in the years nas
to 1900, are: Carnegie company. 49,
eral Steel company, American y
al and Wire company, American +ba
Plate company, with PCS plants; 80,
erican Steel Hoop company, Amer 1Ja,
Sheet Metal company, American
ige company. National Tube com
y, Shelby Steel Tube company and =
ional Steel company y