Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1911-06-30
INDICTED WIRE
MEN SURPRISED
Continued from, First Page,

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were alleged to have acted in restraint
of trade
The American Steel and Wire Com
pany one of the largest subsidiary
concerns Of the United States Steel
Corporation. was declared to have been
represented in seven of the pooling as
sociations, and it's president. William
p, Palmer. was indicted seven times.
The name of John A. R~oebling's Sons
Company appears in eight indictments.
On the list also are the General Elec-
trio Company, the National Conduit
and Gable Company. the Standard I'm
foreground Cable Company, the Ameri-
can Horse Shoe Company, and the
Hazard Manufacturing Company.
List of Defendants.
In the list of defendants appear the
following names:
ErsSine Hewitt, son of Abram S.
Hewitt and secretary of the embassy
sent to london for Queen Victoria's
Jubilee.
Herbert l.. satterlee, son-in-law of j.
p. Morgan. who gets In because he Is
president of the Haborshaw Wire Com
pany.
Charles b. B%rooker. vice-president of
the Ansonia Brass and Copper Com
pany and Republican national commits
teeman from Connecticut.
Karl and Ferdinand Roebling.
Edward S. Perot, who is president OF
the National Conduit and Gable Com
pany.
Frank j. Gould, on the score of his
being president of the Old Dominion
Iron and Nail Works.
lie Baron c. Colt. of Rhode Island.
e. L. Jackson, jr, a lawyer, of this
city.
Mr.. Jackson was indicted nine times
on the ground that he was SUI
pervisor of all nine pools. Ferdinand
Roebling was named eight times. and
Joseph w, Marsh, president of the
Standard Underground Cable Company.
was indicted six times. statesmen ana
minor officers of the various companies
were indicted many times also.
The indictments cover the whole field
of the wire industry, including cleo
trical cables, steel and copper WIRE
wire nails and horse shoes. h gov
eminent alleges that the MIN associa-
tions controlled from 20 to 80 per cent.
of the business in their respective de-
partments.
investigation Was Begun In May.
The investigation looking to the pres
ent proceedings began early last May.
The matter was in the hands of United
States Attorney Wise II Assistant
United States Attorney Felix Frank
furter. They called upwards of eighty
witnesses. avoiding those most closely
allied with the conduct of the associa-
tions SO that these men would not be
able to plead immunity in case of in
dictment.
The associations named in the In
dictments are the Wire Rope Associa-
ton, which controlled, according
to the governments figures, 80
per cent. of the wire rope business;
the Horseshoe Manufacturers Associa-
ton, with 10 per cent. of the field IN
its pocket; the Weather-proof and
Magnet Wire Association, with 80 per
cent; the Fine Wire Association which
is said to nave had 80 per cent. of the
business; the Underground Power
! Cable Association. 80 per cent; the
Lead Incased Rubber Gable Associa-
ton. so per cent. the Rubber Covered
Wire Association, so per cent; the
Telephone Gable Association, so per
cent, and the Bare Copper Wire Assoc
citation, 95 per cent, William p. Pal
mer. president of the American Steel
and Wire Company. was named in all
of these except the Telephone able
Association and the Fine Magnet Wire
Association. The Roeblinss were in
all except the Horseshoe Manufac-
turers' Association.
Pools Formed June 1, 100s.
The government alleges that upon
the formation of the pools, June l,
1908, being the date taken In all the
indictments except one as the starting
point for the culpable activity of the
associations. Mr.. Jackson was put In
charge of the pools and that he stuck
by his job through every subsequent
election.
The associations did not proceed by
"gentlemen's agreements" but reduced
to writing the rules which should gov
ern them. The members, according to
the declarations in the governments
bills, agreed to comply with these
written rules and to cause their re-
spective corporations to conform to
them also.
The matter of price regulation was
one of the chief matters Of concern,
so proceeds the indictments. An arbl-
trary rating was fixed upon which was
based the output of the various COM
panies party to the agreement. These
ratios were regarded as the ailotments
of business allowed to each company.
The method by which the companies
held themselves hound to these allot-
ments was also prescribed, Within a
stated number of days after the first
of each month, In case Jackson indi-
Gated TO any Of them that It's allot-
ment had been exceeded. the offending
company was to deposit via him a
cash penalty which vnried according
to the amount of he exccsss For in
stance, the Bare Copper Wire Associa-
ton provided that II any of its mem
bers did business in excess OF its allot-
ment II should pay to Jackson fifty
cents for each 100 pounds of bare OPP
per We for which It took orders be-
yond what II was allowed.
Formed Forfeiture Fund.
The cash so cole ted went TO form
a guarantee deposit, which was for
feited in case the member withdrew
from tbs association. This money
Jackson was to he'd continuously as
treasurer. Further, upon the forma-
tion of the associations the -1embers
paid nj this guarantee fund sums
ranging from s1.t.. to $1,000. These
deposits, serving as guarantees of good
faith, were forfeited in case the de-