New-York tribune., 1912-02-07
Government Accuses Corporation
and Twelve Subsidiaries OF
Destroying Papers
Wanted in Suit.
AN INJUNCTION SOUGHT
Department of Justice Hints at
Indictments and Criminal
Prosecutions-Judge Gray,
at Trenton, Issues Re-
straining Order.

this city will start tomorrow mOlH!HS
TO serve writs on the United States Steel
Corporation and other defendants named
i'm the order signed by Judge George
Gray and filed in the clerks Office Of the
United States Court here this afternoon
by Henry L. Cotton. special assistant 10
Attorney General Wickersham in the
dissolution suit against the Steel Cor
poration.
The writs were issued to restrain the
United States Steel Corporation and
twelve other defendants from destroy
ing books and papers and other evidence
which might he useful to the government
in the dissolution suit. The twelve other
defendants are only a few Of those
named in the governments original sui;
Proceedings are taken against these de-
PENDANTS because it is charged that they
in their individual capacities, are like
the Steel Corporation. guilty Of acts in
violation Of the antitrust law
The defendants named in addition 10
the Steel Corporation itself are as fol-
lows:
Carnegie Steel Company. Federal Steel
Company. American Steel and Wire Com
uany National Tube Company. Shelby
Steel Tube Company, American Tin Plate
Company. American Bridge Company, Lake
Superior Consolidated Iron Mines, the Ten
nessee Coal Iron and Railroad COMPANY
Union Steel Company, Clarion Steel Com
panp and II. c. Frick Coke Company
Arqument To Be Heard on March s.
These writs, which forbid the destruc-
tion Of books papers, etc, are to be ef-
fective until March 5, when argument Is
10 be heard here on the application OF
the government made in to-day's ped-
tion for a permanent injunction pro-
hibiting the destruction Of books, papers,
etc Mr. Cotton said that the writs be-
came effective Immediately on the sig
nature Of the order by Judge Gray, pro-
vded the defendants knew the order ex-
listed. The serving Of the writs. he said,
was for the purpose Of precluding plea
that such knowledge was not possessed
by the defendants.
Nine of the thirteen defendants. in
Guiding the steel Corporation itself, ire
New Jersey corporations, with registered
offices in this state, and service of writs
will be made on those offices The Ten
nessee Coal, Iron and Railroad Company
will have to be served in Tennessee, and
the Union Steel Company. the Clarion
Steel Company and the II. C. Frick Coke
Company, Pennsylvania corporations,
will be served in the Western District OF
Pennsylvania. Writs will be forwarded
TO the United States marshals IN Ten
nessee and Western Pennsylvania TO
make these services. All the writs will
be accompanied by copies OF the petition
filed by the government.
One portion Of the petition seems 10
indicate that criminal indictments and
prosecutions Of certain officers of the
Steel Corporation and its subsidiaries are
contemplated by the Department Of Jus
tice.
Destroyed Papers in Trunk.
The destroyed papers, it is charged,
were in trunk which, with its con-
tents, was delivered on June 20 1911, by
United States Attorney Wise TO Charles
MacVeagh, general solicitor of tho
United States Steel Corporation, who
gave a written agreement, it is said, that
he would keep the papers in his personal
charge subject to examination by Mr..
Wise or his assistants at any time
The government through Mr.. Cotton,
began negotiations for these papers in
connection with the pending proceed
ings on January 26 r. c. Boiling, as
sstant general solicitor Of the Steel Cor
poration, informed Mr. Cotton it as dl-
legged, that the trunk had been returned
the American Steel and Wire Com
pany about October J. 1911. and that all
the papers had been destroyed by Frank
Baackes, vice-president and general
sales agent Of the company.
The papers, IL is charged in the petl
tion, contained matters tending TO show
that J. A. Farrell. formerly president Of
the United States Steel Products lex
porto Company, now president Of The
United States Steel Cooperating. not only
knew Of said unlawful pools and com
binations described, but aided and
abetted In their successful operation"
Hint at indictments.
The petition further says that certain
much-wanted documents are In imminent
danger Of destruction because there are
officers of the Steel Corporation and its
subsidiaries who have not yet been indicted
for the practices which said papers tend 10
show them guilty Of, 10 wit: OF having
been involved I'm the aforesaid unlawful
association, and also because none Of the
defendant companies has yet been indicted
in respect thereto"
1t is added that many other papers were
produced I'm the wire pool prosecution
which contained data tending 10 show the
guilt Of the American Steel and Wire Com
isny the United statee Steel Corporation
and the United States Steel Products Tex
porO Company, as charged I'm the said pc
titon, as well as the fact that said Farrell
formerly president Of the last named com
pany, now president Of the United States
Steel CORPORATION. not merely was cog
infant OF the unlawful pooling arrange
ment entered into by the American Steel
and Wire Company, through its officers
but also knowingly aided and abetted said
unlawful practices in violation Of the Sher-
man antitrust act II continues
With occasional Interruptions the subsid-
iaIies Of the United States Steel Corpora
tiOn have from time TO time been mem
bers Of similar pools and agreements IN re,
fpect 10 the several products manufacture
and sold by them in Interstate ana foreign
commerce. and there must be, unless tney
have been already destroyed. among tne
records Of the United States Steel Cofporl-
tion. Or is subsidiary companies corfe-
Continued ON fourth page.