The Birmingham age-herald., 1911-07-26
OBSTRUCTIVE
 COMPETITION
 STILL AVOIDED Huston Admits Steel Men Have Effective Oral
 Agreements
IDENTIFIES COPY
 OF THE AGREEMENT
Organization Abandoned in 1904 Be- cause of Uneasiness and Talk of Its Illegality-Committee
 Going To New York


 Washington, July 25.-That through oral agreements steel manufacturers now keep up prices and avoid "destruc- tive competition" Just as effectively as they did under the Iron n-clad contract of the American Steel Plate associa- tion from 1900 to 1904, practically was admitted today by A. F. Huston, pres ident of the Lukens Iron and Steel company. before the House steel trust Investigating committee. The witness said that now from time to time one manufact cturer will say to another, My price will be so and so until further notice" but that there is no agree ment.
 There Is feeling among the com panies, however, he said, that noth- ing should be done to injure fellow without giving him notice"
 Mir Huston said the steel plate as- sociation was organized to obtain req sonable prices. The association not only fixed prices, he said, but allotted cer- tain proportion of production to each cf its II constituent companies.
 The witness said the organization was abandoned in 1904 because there was so much restlessness and uneasi ness and talk about it's illegality.
 MT Huston identified a printed copy of the original agreement, all copies of which were supposed to have been burned in 1900 under his direction, because it was mot in proper form" and testified that the association oper- ated from 1900 to 1904 under a similar agreement, typewritten and uncopied.
 Beall of Texas, Littleton of New York an. Bartlett of Georgia, all democrats, piled the witness with questions, seeking to establish the fact that the steel com panies through Gary dinners and oth- CT conferences since 1904 have been ac- complishing the purpose formerly carried out by the written agreement.
 MT. Huston insisted at first that prices wee not discussed at the Gary din- ners,, but upon having parts of record of speeches delivered at one of the din ners read to him, qualified the statement by saying that prices were discussed only in a general sort of way.
 The committee will hold a session to- morrow before leaving for New York, where the sittings will be resumed Thurs day. --,l-
 where did you see this agreement. before?p asked Representative Beall of Texas, displaying copy now on the of- ficial record of the inquiry.
 When it came from the printer"
 .'who sent it to the printer?"
 T did, replied MT. Huston. MT. Huston said his company partici- rated in the discussions leading up to the agreement and of the organization of the association. He said the purpose was to try to avoid destructive eompe tition. P
 Prior to that time,' he explained, I've had had a period of destructive compe- tition. Common labor was at % cents to S1 day, the price of steel was down to a cent pound, and, in selling, the value of ore in the ground was not taken into consideration at al.'
 Further admission of the existence from November ?, 1900, to November 1905, Of the Steel Plate association along lines similar to the admittedly illegal pool pro- jected in an agreement, copies of which VIC burned in 1900, was made by w c. Moreland of Pittsblrg, secretary of he firm of Jones and Laughlin, limited.
 MT. Moreland submitted an account of his company with the Steel Plate asso- citation and said his records contained act ual figures of moneys paid to Willis l.. King of Pittsburg, treasurer of the pool. Mir. Mcreland said he did not know why the pool ceased in 1905, nor what other firms were In 1t.
 MT Huston said the United States Steel corporation during the period of depres- sion kept it's prices down, though 1t could have made advances of s to $1O a ton If it had desired.
 MT. Beall wanted to know why the witness and his associates were so partic- ular about burning the original steel plate agreement.
 "Becsuse that was the best way to get rid of a batch of old papers, suppose was the reply. tr sa
 The witness said that while the agree. nent was in operation all of the com nanies were required to make monthly re- ports ot production to w. c. Temple, commissioner of the association. and the rate of production was rearranged an- nually at meetings at New York.
 What was the purpose of the associa- tion, anyhow?' Beale asked.
 .To obtain reasonable prices
 Wasn't your object to limit produc- tion.'
 No: the agreement was simply to fix the rfcportion of productions
 The witness explained that meetings were held once month to agree upon minimum. prices After the association dissolved, he said, his company probably increased it's output but was consider ate of others"