The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1911-07-25
AGREEMENT IS
READ IN COURT
Steel Corporation Had Pact
Regarding Sales.
PENALTY FOR VIOLATIONS

Eleven Concerns In Pact Which oblI-
gated Themselves to Sell Only a
Certain Proportion of the Business
offered-Carnegie Company Down
for Nearly Fifty Per Cent of All
Shipments.
Washington, July 25.-When the
house steel trust committee resumed
its session Chairman Stanley put in
the records a copy of the agreement
which the Steel Plate association of
the United States entered into Nov.
8, 1900. The agreement has been in
possession of Mr. Stanley for some
time and a number of witnesses have
been questioned regarding 1T. Eleven
great steel companies entered into the
agreement and apportioned among
themselves all shipments of steel
plates
The steel company that dared vio-
late the agreement laid itself liable
to heavy penalties and it is said that
fines of $1,000 frequently were i'm
posed on members of the combination
when complaints were filed with the
executive committee Each firm was
required to make monthly sworn
statements relating to shipments, roll
ing production and other items OF
trade, and any member who shipped
more than his apportioned amount was
required to pay a penalty on each
pound of such excess. The money
thus collected was apportioned among
the members who did not ship up to
their allotted share.
The agreement showed the follow
ing apportionment of shipments allow
able by the various companies party
to the agreement:
How Business Was Divided.
Carnegie Steel company, 1925 per
cent; Jones & Laughlin, limited, Ats;
Illinois Steel company, IL; Crucible
Steel Company of America, 4.50; Otis
Steel company, ESQ; Tidewater Steel
company, 800; Lukens Iron and Steel
company, 7.50; Worth Brothers com
pany, 700; 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 1000 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 r. Mellon &
Sons, Pittsburg, 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 the pool
between the members, but any men,
ber unable to produce his full allot-
ment at the end of the year forfeited
such unproduced tonnage which was
divided pro rata among other mem
bers Of the pool.
Sales at Agreed Prices.
The agreement also bound the men,
bers to make sales between parties to
the agreement at pool prices
To assure submission Of statements
and faithful adherence of each party
to the terms Of the agreement, guar
antee fund of 100000 was provided
by payment Of $1,000 on each per cent
OF allotment.
Eugene C. Bonniwell OF Wayne, Pa,
a lawyer, and Democratic candidate
for congress last autumn. told the
committee he induced F. b. Kaufman
of Colesville, Pa, a publisher, who
printed copy OF the ag>eement for
the Lukens Steel company in 1900, to
procure copy OF II for the steel CON-
mittee.
Richard Lindabury. counsel for the
United States Steel corporation, pro-
tested against the introduction of the
copy OF the agreement.
This Is not signed" said Mr.. Linda.
bury. There is no evidence that 1t
was signed and the date already given
Ii year in advance of the formation
of the United States Steel corpora
to-