Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-07-29
BIC POOL IN STEEL
lron-CIad Agreement is Put
in Evidence.
VIOLATES ANTITRUST LAW
Philadelphia Lawyer and Coates
vile, Pa, Printer Unearth
Copy Of Agreement
Among Companies.

AN16 ~SA f
washington, July 25. when the
house steel trust committee resumed
its session, Chairman Stanley put In
the record 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 number of witnesses have been
questioned regarding it.
Eugene Bonniwell. Philadelphia
attorney, and f. b. kaufman, job
printer, of Coatesville. 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-
we'll decided to give the information TO
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 apportioned
among themselves all shipments OF
steel plates. The steel company that
dared violate the agreement laid itself
liable to heavy penalties. and 1t is
said that fines of $1,000 frequently
were Imposed on members OF the COM
binatson when complaints were filed
with the executive committee.
Each firm was required to make
mgathly sworn statement relating TO
shipments. ioiiing production, etc. and
any member who shipped more than
his apportioned amount was required
10 pay a penalty on each pound of
such excess, ne money thus collected
being apportioned among the mem
bers who did not ship up to their al
lotted share.
Row 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, Ats
per cent; Illinois Steel company, 1l.0e
per cest; Crucible Steel Company of
America 4.5g per cent; Otis Steel
company, 2.5e per rent; Tidewater
Steel company, 800 per cent; Lukens
Iron and Steel company, $50 per cent;
Worth Brothers company, 200 per
cent Central Iron aud Steel company
500 per cent: American Steel and
Wire company, $50 per cent; Glasgow
| Iron company, to the extent of sales
and mp to 10000 tons, should they be
able To accomplish them. prior to Dec.
81, 1901.
Dehss of members of the association
were required to be paid by check
drawn to the order of II. Mellon &
Sons, Pittsbwg, to the credit Of the
association. The agreement included
exemption tonnage provisions and at
the end of each year the commissioner
of the association balanced TIE pool
between the members, but any mem
Der unable to produce his fun allot-
ment at the end of the year forfeited
such unprotected tonnage, which was
divided pro rota among other mem
beers 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 il 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 ladiBg, or other
evidence Of expectation, for actual use
abroad, satisfactory to him (said eai
denee to be confidential and not to he
circulated among membersD" Such
tonnage was TO be deducted from the
members report and the agreed poos
tax charged.
The agreement also bound the
members 10 make sales between par
ties to the agreement at pool prices.
To insure statements and faithful ad
herence OF each party 10 the terms OF
the agreement, a guarantee fund OF
sl00,000 was provided by payment OF
$1,000 ON each per cent of allotment.