The Oskaloosa herald., 1911-07-27
Steel TRADE IS !
DIVIDED BY PACT
Chairman Stanley Submits Copy
Of Alleged Agreement.
HEAVY PENALTIES AND FINES
Strict Allotment Of Output Amono
Eleven Companies Party to the
Combine Is Feature Of
Pool.

Washington, July 25.--Congressman
Stanley's expected sensation In the
investigation of the steel trust was
sprung in the form of an alleged agree,
ment entered into in November, 1900,
by eleven steel companies to cooper
ate for their mutual interest and to
form an organization known as THE
Steel Plate Association of the United
States"
No sooner had the committee met
than Chairman Stanley put into the
records a copy Of the alleged agree,
ment. 1t first came to light through
Eugene Bonnewell, an attorney, and
F. B. Kaufman, a job printer, both
OF Wayne, Pa, who acquainted Chair
man Stanley of their information. They
said they had printed it for the Lux
ems Iron and Steel company.
- Heavy Penalties fas--Nialatioas.--.-~.
Any steel company violating the
terms of the agreement, it is assert
ed, laid itself liable to heavy penalties
and fines of as much as $1,000 have
been imposed. Each firm was required
to make monthly sworn statements
relating to shipments, rolling produc-
ton, etc, and any member who
shipped more than his apportioned
amount was required to pay a fine on
each pound of such excess, the money
collected being divided among the
members who did not ship up to their
allotted share.
According to the agreement the fol
lowing were the companies and their
allotments in the pact: Carnegie
Steel company, 46.25 Jones and
Laughlin, limited, Ats; Illinois Steel
company, 100; Crucible Steel COM
pany of America, 4.50; Otis Steel COM
pany, $50; Tidewater Steel company,
800; Lukens Iron and Steel company,
$50; Worth Brothers company, 100;
Central Iron and Steel company, 500;
American Steel and Wire company,
$50 per cent; Glasgow Iron company,
to the extent OF sales and up to 49,
600 tons, should they be able to accom-
plish them. prior to December 81,
1901
No Latitude In Prices.
Section 9 of the agreement, reads:
An sales between parties to these
agreements shall be at full prices,
as provided in agreement and all
shipments shall be reported by the
manufacturer, on which pool tax will
be charged the same as outside par
ties, the purchaser also to report ship
ments of all such materials so bought,
for which they shall claim and receive
credit"
Section 10 tells of the establishment
OF a general expense fund to provide
for the prompt payment of all salaries,
rents and other expenses, to be called
In as needed by the treasurer of the
association in proportion to the per-
centage allotted each member.
Another provision of the agreement
required that "all plates shipped into
the states bordering on the Pacific
coast and 10 be actually used In the
territory into which 1t is shipped and
also all plates actually exported for
use outside the limits of the United
States be reported to commissioner,
together with bills of lading, or other
evidence of expectation, for actual use
abroad, satisfactory to him (said evil
dence to be confidential and not to
be circulated among members). Such
tonnage was to be deducted from the
members report and the agreed pool
tax charged.