The free lance. (Fredericksburg, Va.) 1885-1926, 1911-07-27
IrOn.CIdd Agreement is Put
in Evidence.
VIOLATES ANTITRUST LAW
Philadelphia Lawyer and Coates
Vile, Pa, Printer Unearth
Copy Of Agreement
Among Companies.

Washington. July %. - When the
house steel trust committee resumed
~ session, Chairman Stanley put in
the record a copy OF the iron-clad
agreement By which the steel plate
association OF the United States was
entered into, Nov 8, 1900.
The agreement has been In the pos
session OF Mr. Stanley for some time
and a number Of witnesses have been
questioned regarding ii.
Eugene Bonniwell. a Philadelphia
attorney, and f. b. Kaufman, iol
printer. OF COatesyille, Pa, discovered
this agreement and brought It to the
attention Of Mr. Stanley. Kaufman
had printed the agreement, he said
for the association and he and Bonni
well decided to give the information 10
the committee. This agreement is al
Legged to be in restraint of trade. and
in violation of the Sherman antitrust
law.
Eleven great steel companies enter
ed into the agreement and apportionec
among themselves all shipments oI
steel plates. The steel company tha
dared violate the agreement laid itsel
liable to heavy penalties, and 1t i
said that fines Of $1,000 frequentl,
were imposed on members OF the com
blnation when complaints were filed
with the executive committee.
Each firm was required to make Q
monthly sworn statement relating tC
shipments. rolling production, etc. and
any member who shipped more than
his apportioned amount was required
TO nay a penalty on each pound OF
such excess. the money thus collected
being apportioned among the mem
bcrs who did not ship up to their al
lotted share.
How Trade Was Apportioned.
The agreement showed the follow
ing apportionment Of shipments al
lowable by the various companies
party to the agreement:
Carnegie Steel company, 1925 per
cent. Jones & Laughlin, Limited, 4.I5
per cent: Illinois Steel company, Hoo
per cent: Crucible Steel Company OF
America. $50 per cent; Otis Steel
company, $50 per cent; Tidewater
Steel company, 800 per cent; Lukens
Iron and Steel company. $50 per cent;
Worth Brothers company, 100 per
cent: Central Iron and Steel company,
500 per cent; American Steel and
Wire company, $50 per cent; Glasgow
Iron company, to the extent Of sales
and up to 10000 tons. should they be
able to accomplish them, prior to Dec.
81. 1901.
Debts Of members Of the association
were required TO be paid by check
drawn to the order Of T. Mellon &
Sens, Pittsburg, TO the credit Of the
The agreement included
exemption tonnage provisions and az
the end OF each year the commissioner
NJ the association balanced the pool
between the members, but any mem
Der unable to produce his full allot-
ment at the end Of the year forfeited
such unprotected tonnage. which was
divided pro rota among other men,
bers of the pool.
Another provision of the agreement
required that "all plates shipped into
the states bordering on the Pacific
coast. and to be actually used In the
territory into which It is shipped, and
also all plates actually exported for
use outside the limits Of the United
States. be reported to a commissioner,
together with bills of lading, or other
evidence OF expectation. for actual use
abroad. satisfactory to him (said evi
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.
The agreement also bound the
members TO make sales between par
ties to the agreement at pool prices.
To insure statements and faithful adj
herence OF each party to the terms OF
the agreement, a guarantee fund or
100000 was provided by payment OF
$1,000 on each per cent Of allotment.