Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-10-27
STEEL TRUST TO BE DLSSOL WE'D
ARE WORLDS CHAMPIONS
SUTT IS FILED AGATNST GREAT CORPORATTON

control of a competitor, taking an
IA formidable aspect
The corporation thus greatly
strengthened its control of the coun-
trys iron ore supply. thus gaining
n predominating position in the
Souths iron ore supply, thus gaining
ing competitor and unlawfully ac-
curing a power which is a menace
to the welfare of the country and
should be destroyed"
Agreed on Mutual Projection.
The Gary dinners are referred to,
though not by name as meeting which
accomplished more than written pools
or agreemnets, which were frequently
broken.
1T was understood and agreed"
says the bill, that they (the steel
manufacturers represented at the
meeting), We're bound to protect one
another; that to carry out this pur-
pose their honor was at stake, and
that the obligation binding upon them
was even dearer than life itself; 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
binding on him than any written or
verbal contract When bldden by the
chief executive of the corporation,
they came at any time, from any dis
tance, ready, willing, and anxious to
turn over to him and to his friends
all that was in their minds, and in
their hearts, concerning their own
| business"
Pools by Another Name.
Interlocking direetorat,s through
which those in power In the Steel
| Corporation, held positions of influ-
ence on the drectorates of other pow
erful corporations are referred to as
a method more refined, more eu-
phonious, but none the less effective
than pools"
Through its directorate thus lis
tributed," says the governments petit
ton, the corporation Is in direct
touch with all of the large railroad
| and steamship companies Of the
/ United states; such powerful concerns
as the Standard Oil company the
Pullman company the International
4 Harvester company, and the Western
/ Union Telegraph COMPANY, and with
the overwhelming majority in power
of the banks and trust companies of
the United States, the possibilities of
! the power and control that may thus
be eXerted over trade and commerce,
! Is lneStllndDle.
Filing of Suit BOmbshell.
The power and control that have
been exerted by the corporation large
| ly through the grasp of its tentacles,
thus thrown out upon the consumer,
competitors and capitalists is incom-
patible with the healthy commercial
! life Of the nation"
The government reviews in great
detail the conditions In the steel trade
/ in the different consultations OF
1S9S-190O, and the formation of the
/ Federal Steel company, the Carnegie
company, of New Jersey, the Amer
ican Steel and Wire company, the Ma
tlonaI Tube company, the National
Steel company, the American Tin
Plate company, the American Steel
! Hoop company, the American Sheet
Steel company and other corpora
tions prior to the formation of the
United States Steel corporation itself, |
in 1901.
Getting" u Competitor.
! Describing the corporations acqui-
sition of the Tennessee Coal and Iron
company the petition reads;
"In 1907 the corporation acquired
the control and almost the entire
ownership of the Tennessee Coal, Iron
and Railway Co. The properties of
this company We're located mainly in
Alabama and Tennessee.
! lowing to the character of its coai
and iron deposits, the Tennessee COM
pany could manufacture pig iron
cheaper than 1t could be made in any
other part of the United States. On
account OF its vast holdings Of coai
and iron properties, II was a strong
probable future competitor of the
corporation. Most of the rails in the
United States had been made out of
BeSsemer ores. On account of the ac /
cldents attributed to weakness in such I
rails a demand arose for an OPEN
hearth rails, and for such process the
ores owned by the Tennessee company
were available.
Hartman Starts Sensation.
"In 1907 a sensation was created In
the steel rail market by r.. II. Harri- |
man ordering from the Tennessee
company 157. 500 tons of hearth |
steel rails. at 81 more per ton than
the price of Bessemer rails. This
I put that company into a position of
competitor, and one that could not
he ignored of being Of great poten- |
tally.
"Tl.e corporation was not slow to
discern the situation. James Gayley, |
first vice president of the corporation,
having acquainted himself with the
properties of the Tennessee company,
had already recommended to Mr..
Frick, who was then a director of the
corporation, that it acquire the prop
erties of the Tennessee company.
bringing of the Panic.
Grant +. Schly. of the firm OF
Moore & Schly of New York City, was
one Of the syndicate holding a major
I ity of the stock. This was known to !
the officers of the corporation. Moore
d Schly, In October. 1907. owned large |
sums of money in New York and else
where. from s35.0O0.000 to s3s,000,-
600 upon call, and time loans, which
we're running TO maturity. Some of
these loans were partly secured by /
pledge OF 100000 shares of Tennessee I
stock, the amount for the floating.
'In October. 1907. a great panic
came, and New York was the storm
center.
Those i'm control of the corpora
ton obtained intimate knowledge of