Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-10-27
THE JJNlTED STATES Steel III.
= CORPORATION MUST co.
Government Begins It's Most Drastic Action
Means the Dissolution OF the Steel
Trust AS Well AS All Constitu=
emf or Subsidiary Companies.

Trenton, N j., Oct 26.-The gov
ernment's long planned suit to break
up the so=called steel trust" was be-
gun here today in the United States
circuit court. 1t is the most sweep
ing antitrust action ever brought by
the department of justice The gov
eminent asks not only for the disso-
luton of the United States Steel Cor
poration, but for the dissolution of al
constituent or subsidiary companies
which are alleged to have combined il
violation of the Sherman law to main
tain, or attempt to maintain, a monop-
oily of the steel business.
There are thirty-six subsidiary cor
porations named as defendants.
j. Pierpont Morgan, John y. Rock
efeller. Andrew Carnegie, Charles NJ.
Schwab. George w Perkins, L. w.
Gary, John d. Rockefeller Jr.; Hen
ry c. Frick, Charles Steele. James
Gayley. William II Moore. j H.
Moore. Edmund C. Converse, Pereival
Roberts. Jr.. Daniel G. Reid, Norman
B. Roam. P. B, Widne1 and William P.
Palmer are named individually as de-
PENDANTS.
The United states Steel Corpora
of New Jersey, Federal Steel Co,
National Steel Co. American Steel
and Wire Co., of New Jersey, Nation
al Tube Co. Shelby Tube Co, Ameri-
can Tin Plate Co. American Sheet
and Tin Plate Co, American Sheet
Steel Co, American Steel Hoop Co,
American Bridge Co. Lake Superior
Consolidated Iron Mines, all of which
h.
laws and the H. C. Frick Coke Co..
Tennessee Coal and Iron and Railroad
Co, and the Great Western Mining
Co, are named as corporate defend
ants.
Louis w Hill, James y. Hill, Wal
ter j. Hill, E. 7. Nichols, and j II
Gruber are named as trustees of ore
companies.
The Steel Corporations lease of the
Great Northern Railways ore proper
ties which the directors of the Stee
Company formally decided today, Il
cancel. is alleged to be Illegal. This &C.
ton by the directors was taken bu
few hours before the filing of tbs
bill. The government acknowledge
that it was advised of the Steel Cor
poraton's intention in this respect bu
states that under the terms of tbs
lease no cancellation would be effec
tive until Jan. /, 1915, and there is M
limit upon the amount of ore that can
be taken out in the meantime.
Sensational allegations fairly toppl
over each other in the government
petition. which is an equity proceed
ing praying for injunctions to cstol
continuance of the alleged monopol!
and such other relief as the court ma!
grant
The Steel Corporations acquisition
of the Tennessee Coal & Iron Co.
luring the panic Of 1907, is declared
Illegal and is scathingly criticized The
petition declares that f. Fl. Gary ant
Henry c. Prick misled former Presi-
dent Roosevelt when they told hin
but little benefit will come 10 tht
Steel Corporation from the purchase.
The President it says, was not
made fully acquainted with the state
of affairs in New York relevant TO the
transaction as they existed. II he had
been fully advised he would have
known that a desire to stop the panic
was not the sole moving cause, but
that there was also a desire and pur-
pose to acquire the control of a COM
pany that had recently assumed a
position of potential competition of
great significance.
1t is certain that the corporation
awaited itself of the embarrassment of
Moore & Schley New York brokers who
had large holdings of Tennessee stock
at most critical period and the ham
mering of the Tennessee stock and the
threatening of a general financial calam-
ity, to acquire the control of a Compel
itor, taking on a formidable aspect.
THE corporation thus greatly strength
ened its control of the country's iron ore
supply, its predominating position in the
Souths iron and steel trade. eliminated a
competitor and unlawfuy acquired
power which Is a menace to the welfare
of the country and should be destroyed"
The Gary dinners are referred to,
though not BY name, as meetings which
accomplished more than written pools or
agreements which were frequently
broken.
1T was understood and agreed" says
the bill, that they, the steel manufac-
turers represented at the meetings, were
bound TO protect one another that to
carry out this purpose their honor was
at stake, and that the obligation binding
upon them was even dearer than life it.
self, and that no one of them should act
or fail to act except with a distinct and
clear understanding that his honor was
involved. and that this was more binalng
on him than any written or verbal con-
tract When hidden by the chief execu-
tive Of the corporation they came at any
time, from any distance, ready willing,
and anxious TO turn over to him and MS
friends all that was in their minds and
in their hearts concerning their own ous-
mess?
'Interlocking drectorates through
which those in power in the Steel Cor
poratiDn held positions Of influence on
the directorate of other powerful corpor-
atoms are.referred TO as method more
refined, more eurhonious, but none the
less effective than pools"
Tarough its directors. thus dis
tributed.n says the governments petit
ton. the corporation is in direct
touch with all Of the large railroad
and steamship companies OF the United