Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1911-11-03
UNCLE SAM FILES
STEEL TRUST SUIT
GOVERNMENT ALLEGES coRPo-
RATION TO BE IN VIOLATION
OF THE SHERMAN LAW.
ACTION COMES AS SURPRISE
Combine Had Recently Given UP Their
Leases on Ore Lands and An
nounced Reduction of Freight
Rates on Its Roads.
WHAT SUIT MEANS.

Suit would dissolve United
States Steel Corporation and 36
subsidiaries.
]. P. Morgan, Andrew Carne-
gle, John D. Rockefeller, E. H.
Gary, Charles M. Schwab and
other prominent men named as
defendants.
Direct connection charged be-
tween steel corporation and all
large railroad and steamship lines,
Standard Oil Co., Pullman Co.,
International Harvester Co. and
Western Union Telegraph Co.
Proposed cancellation of leases
on Great Northern ore properties
declared illegal and noneffective
until January 1. 1915.
Acquisition of Tennessee Coal
& Iron properties declared illegal
and a national menace.
~-~~~~o~e.o~-~-~S>-ee-e~o ee-e~oo-~~oS~~-o-~~-~~--~
Trenton, N. 1.-THE federal gov
ernment entered suit to dissolve
Tic Oullcu DIdlSb Sttol SOl
in the United States circuit court here
October 26. This action is the most
sweeping antitrust action yet begun
by the department Of justice.
Names 36 CorroIary Companies.
Not only does the government pro-
pose to dissolve the steel trust and to
restore competition but it is under
stod that criminal proceedings will
soon be entered against the officials
who have conducted the trust. In its
plea the department of justice not
only asks that the parent trust be dis
solved but that all the constituent
companies, which formed part of the
monopoly alleged to exist, be dissolv-
ed as well. Thirty-six corrolary COM
panies are named in the action.
The petitioners were John B. Vree-
land, United States district attorney
for New Jersey; George w. Wicker
sham, attorney general Of the United
States, and Jacob M. Dickinson, spe-
cial assistant to the attorney general.
Mr.. Dickinson was President Taft's
first secretary of war.
lease of the Great Northern railway
lands which the steel trust announced
some time ago that it would cancel,
to be illegal. 1t admits that it had
been informed of the corporations in
tentions to this direction but declares
that such action could not be made
effective until January 1, 1915. In the
meantime an unlimited quantity of ore
could be mined and utilized.
The governments petition severely
criticises the steel trust acquisition of
the Tennessee Coal & Iron Co. in 1907,
and declares that President Roosevelt,
who sanctioned the absorption, was
mislead by Henry G. Frick and e. H.
Gary when they told him that but
little benefit would come to the steel
corporation from the purchase"
criticizes Acquisition of Iron Co.
"The president" it says, was not
made fully acquainted with the state
of affairs in New York relevant to the
transactions as they existed. II he
had been fully advised he would have
known that desire to stop the panic
was not the sole moving cause, but
that there was also desire and pur-
pose to acquire the control of COM
pany that had recently assumed a posi-
tion OF potential competition of great
significance. 1t is certain that the
corporation availed itself of the am
barassment of Moore and Schley at a
most critical period and the hammer
Ing of the Tennessee stock and the
threatening Of general financial
calamity to acquire the control of a
competition which was taking on a
formidable aspect. The corporation
thus greatly strengthened its control
OF the country's iron ore supply; elm
mated competitor and unlawfully ac.
quired power which is menace to
the welfare Of the country and should
be destroyed"
Trust Directors Get Busy.
Only three hours before the news
was made public of the filing of the
governments suit for dissolution a
meeting of the board of directors of
the steel trust was held and resolu-
tions were adopted authorizing the
cancellation of the Great North.
ern Pacific ore leases January 1,
1915, and the reduction of freight rates
on iron ore on the railroads owned by
the big combine In the Lake Superior
region from 80 to go cents ton. The
ore lease provides for its cancellation
on two years notice.