The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-05-07
GOVERNMENT BEGINS
DISSOLUTION SUIT
Steel Corporation Attacked
Through the American Steel
and Wire Company.
PRICES FIXED BY POOL
Judge Gary Said to Have Been
Ignorant of the Alleged
Wrong-Doing.

NEW YORK. May s.-Thc government
began its suit to dissolve the United
States Steel corpora ton today by at
tacking one OF It's largest subsidiaries.
the American Steel and Wire company,
with the intention to prove that ever
since Its organization, in 1889. down to
| year ago, IT had been q party TO pools,
agreern ents or understandings to re-
strain trade.
The testimony taken before Henry p.
Brown of Philadelphia. special commits
sioner in the case, was given by two
witnesses. Wallace Buell. OF Port Ches-
ter, N. Y, a retired independent wire
manufacturer. and George Z. Holton.
president OF the Dryden Horseshoe COM
pany Of Catasauqua. Pa. who. with
others. was Indicted and fined in the
So called wire pool" cases about a year
ago.
There are seven OF the alleged pools,
covering different kinds OF wire. named
in the governments complaint, and Hol-
ton testified as to the foruati tion of the
American Horseshoe association In jan
uary. 1901. three months before the Of
ganization Of the United States Steel
corporation. The association. he said,
was organized for fixing the price OF
horseshoes and was composed of nine
concerns, among them the American
Steel and Wire. and his own concern.
Says Gary Didn't Know.
Didn't Vice President Bachus of tho
American Steel and Wire company, state
In one OF the meetings Of the associa-
ton that Judge Gary. chairman OF the
Steel corporation, had no knowledge Of
this pool?" asked G. A. Severance. one
OF the defendants lawyers.
Yes. he did, replied the witness,
Judge Gary had no knowledge OF ii AS
far as I know"
Didn't the American Steel and Wire
company withdraw from it because Cary
found 1t out?''
THAT don't know. 7 only know that
the American Steel and Wire company
got out"
Members of the association. including
a representative OF the American Wire
company. however met informally after
the dissolution OF the pool until about a
month after the New York grand Jury
inquiry into the general wire situation
was begun last year, the witness as
serted.
The meetings were abandoned them he
said. on the advice OF Edwin E. jackson.
the Supervisor" of this and other wire
Fixed the Prices.
"At these informal meetings we en-
,I,. I'm
what the other mans price would be the
next day" said Holton. who added that
although under the new arrangement
prices were not always uniform. there
were five or SIX companies. including the
American Steel and Wire company, which
usually named the same prices,
During the existence OF the formal
agreement. Holton testified It was Jack
sons duty to name the concern which
should accept the bids Of the United
States government.
Holton read into tho record number
OF letters written by him to Jackson in
behalf OF his company in which he uc-
cused the American Steel and Wire com
pany of violating tho agreement to main
tain prices. Another asserted that the
subsidiary was cutting prices on Honolulu
business. land unleJs some action Is
taken we shall sec that we get our fair
share of that business"
In another letter Hoton remarked that
lnasmuch as the steel and wire company
did not seem to have clear understand
ing Of the agreement. "lt would be We'll
for use not to have clear understand
ing also"