The Birmingham age-herald., 1911-07-25
STIR CAUSED BY
 ALLEGED POOLING 0F STEEL OUTPUT
Agreement Provides Per- centage Apportionment
 of Steel Production
ILLEGAL DOCUMENT
 PLACED IN RECORD
Counsel for Steel Corporation Ob- jects But Is Not Sustained-Be- lieved Agreements Had All
 Been Burned


 Washington, July 24-A purported pool ing agreement between the Carnegie
 Steel company and ten other kindred concerns for a percentage apportionment of the steel output of the country-an admittedly illegal document supposedly long since destroyed-stirred today meeting of the House "steel trust ln- vestieating committed Chairman Stan lev produced a copy of the agreement, together with other confidential data ana
 the agreement was admitted in evidence a. against the protest of counsel for the corporation that it was unauthenticated. It was admitted, however, that business operations of these companies continued under an understanding similar to the agreement.
 The original agreemnt provided Tor the
 formation of the steel plate association of the United States and notwithstand- ing that the agreement was burned and only came to light because a Pennsyl- vania printer had saved a copy from the flames, the committe found corrob- orative evidence that the steel plate as- sociation did exist after the incinera- tion of the tell-tale docunlents. J. R. Van Orner of the Lukens Iron and Steel company one of the parties to
 the original pool. testified that all copies of the agreement had been burned be- cause 1t was thought its provisions were illegal. The agreement itself he testi- fled, never was signed by his company and all sent to other companies were re- turned for destruction. He admitted. | however, that operation of the business
 of his company proceeded along lines of an understanding similar to the pro- visions of the burned agreement. Busi-
 ness was apportioned on a percentage
 basis, he admitted, for several years up to 190s His firm, he said, contributed | to guaranty fund to insure carrying | out terms of operation and reports of l business were made. to W. C. Temple, I who acted as commissioner of the com 1 binatiui.
 Bank Cashier Testifies w. sS Mitchell, cashier of the Mellon National bank of Pittsburg, formerly I o. that the Steel Plate association had an account with the bank from February 2, 1901, to January 30, 1902. The total credit account of the Plate associa- tion was about $25o,000 and all the checks and vouchers were made out in the name of W. s. King, treasurer of the association. MT. Van Ormer ad- mitted that he had dealt with Mir. King during the term of years.
 Tomorrow the committee expects to
 hear more concerning the actual opera
 tion of an agreement between
 the steel plate manufacturers
 from A. F. Huston. president of the Lukens Iron and Steel company. Solicitor General Lehman testified that the steel plate agreement much re- sembled the agreement of the wire manufacturers upon which were based indictments recently returned in New York
 the agreement laid Itself open to heavy penalties and 1t is said that fines of 5000 were imposed on members of the combina ton then complaints were filed with the executive committee. Each firm was required to make monthly sworn statements relating to shipments, rolling production, etc., and many members who shipped more than its apportioned amount were required to pay a penalty on each pound of such excess, the money thus collected being apportioned among the members who did not ship to their allotted share. The agreement showed the follow ing apportionment of shipments allow | able by the various companies party to the agreement:
 Members of Pool Carnegie s eel company. 4s.25 per cent.
 Jones & Laugh,in. limited. 4.75 Illinois Stee! company, II. ] Crucible Steel company of America l 450.
 I Otis Steel coIIpany, 2.50. Tidewater S;rel company, B. ] NI.ulxens Iron and Steel company, 7.5O Worth Brothcrs' company, T. Central Iron lhd Steel company, S. American steel and Wire com pany. $50.
 Glasgow I-on company to the ex-
 tent of sales un to 10000 tons. should l they be able to accomplish, this prior | to December :i, 1901.
 The asreera:rt included exemption 1 tonnage provisions and at the end of 1 each year the commissioner of the as- 1 sociation balanced the pool among the members, but f.ny member unable to | produce his full allotment at the end of the year Forfeited such unproduced l tonnage Which was divided pro rata among the other members of the pool The agreemcn. also bound the mem 1 bers to market sales between parties at the pool prit:s.
 | To insure rendering of statements and faithful adherence to each party to | the terms of Inc agreement, guar antee fund of s''J.00O was provided by
 payment of $,cD0 on each per cent of
 allotment. g.
 Eugene c. lIorniwell of Wayne, Pa. told the coE,T tee today of having 1 seen the agreement and how he induced | a purchaser who printed a copy of tn 3 | agreemcnt fo" the Lukens Steel com
 many in 1900 to procure copy of it | for the stee' committee. l K Richard Linda ,ilry, counsel for the United States Steel corporation. pro- I tested against the introduction of the copy of the agreement. l Republican m. .mbers wanted to l know if the chairnan attempted to get | the original agreement. He said he
 had.
 l tary of the United Steel corpora tion was subpoenael Satui day to produce the original copy of the agreement. l I've have not got such an agree ment in any. oi OFT files," said Mir. Lin- dabury. we ieny all Knowledge of it and feel that we ought not to be cred 1 ited with 1t in this record, particu-
 CONTINUED ON PA0E 2l