New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-22
MORGAN LETTER SUFF|CED
Roberts Tells How Steel Trust
Absorbed Am. Bridge Co.
"ExCHANGE OF SECURITIES"
Witness Agreed to Join Steel
Board as Soon as Bacon De-
scribr ! Plan to Him.


How simply and how quietly the United
States Steel Corporation could, under cir
cumstances, @hso,b = large corporation en-
gagged In the manufacture Of steel prod
ucts was toid yesterday by Percival Rob
erts, tr.. the '.ound defendant TO be called
as witness in the governments suit for
the dissoluti,n Of ihe alleged steel trust.
Mr.. Robelt told Of the absorption Of
the America Bridge Company 10y the Steel
Corporation, which. he said, was accom-
plished within d few days through cir
cular letter issued by J. r. Morgan & Co,
proposing au exchange Of the American
Bridge Company's stock for that of the
Steel Corporation The witness said that
he accepted the proposition and place Oh
the directorate of the Steel Corporation
without even knowing what the rate of
the exchange of stocks was TO be
When the American Bridge Company was
taken over Mr. Roberts was its president
Since then he fas been a director Of the
Steel Corporation, and since 1909 member
% It's finance committee.
WHO conducted the negotiations between
khe American Bridge Company and the
Steel Corporate asked Jacob NJ. Dick
anson. counsel for the government
There were none" was the reply Of Mr..
Roberts. 1.-THE first heard Of It officially
waA a circular issued by J. p. Morgan &
Co. TO the shareholders Of our company
offering to exchange stock In the United
States Steel Corporation for stock in the
American Bridge Company"
do you mean to say that the sale was
conducted without previous negotiations
Queried Mr.. Dickinson.
~ mean exactly that" was the answer.
''Burthermore. it WAS not a sale hut an ex-
change Of securities"
The first he personally knew about the
matter, Mr.. Roberts said was through an
interview with Robert Bacon IN the offices
Of J. P. Morgan & TO. Mr.. Bacon told him
about the proposed exchange. he testified
and wanted 10 know If he was willing to
become a director in the United states
Steel Corporation Mr. Roberts said he
was willing 10 accept the place.
do you mean that YOU agreed 10 become
q director Of the steel corporation before
you knew what YOU would get for Amer
ican Bridge Company stock was Mr.
Dickinson's question.
IT do" replied Mr. Roberts.
The counsel for tho government th"n
took I'D a meeting Of the executive com
Synttfe6
Nay, 1901, al which Mr. Dickinson said. il
was proposed TO combine all bridge com
panies. When Nj Roberts failed to recall
that rneeting Mr. Dickinson read from tn.
minutes of the gathering which described
Mr.. Robert as being opposed 10 the
scheme because the Other bridge compa-
MES were not able to compete and would
not be able unless they combined.
~, ;vqlN OF
COPY Of the minutes" said Mr.. Roberts.
.somethins along that line was referred
70. but do not thnl; that all ,ou read is
correct"
Asked TO give his recollection r. tie
meeting. Mr. Roberts said that besides him
there were present Judge Gary, Charles N.
Schwab, r. {. Converse ana u. 9. Reid
1t was proposed TO absorb several Of tie
bridge building companies principally
those In the East. ha sad but there was
h talk about taking thom al The proposal
N was turned down Mr. Roberts added
Going back 10 the time when he was the
head of the 4 r Roberts Company.
known as the Fenroyd Iron Works Nj.
Roberts told Of N. formation q the
American Bridge Complain. which took i'm
the Pencovd Works During the first year
the American Bridge company got 35 per
cent Of the business iu its Own line that
could be had in this country. and the PRO-
portion did not increase when the Steel
Corporation took oNer the COMPANY. NJ.
Roberts SAID
The reason for the co0-ohdstion ~ the
bridge building companies WAS economy.
and there vas no intention {" monopoize
the trade. the witness asserted S number
Of companies were anxious 70 come I'm. he
said. but many we've rejected because they
satd not really offer advantages Of eConom-
seal production.
The combination did net restrain the
Business o. prevent independent plants
from springing up al over the country.
Mr.. Roberts said. asserting that there
were a little more than one hundred
bridge building plants in i9oA whereas IN
May, 1911 the members had reached four
hundred only fort'niDe Of which were
owned by The American Bridge Company.
Mr.. Dickinson introduced i'm evidence
contract between The American Bridge
Conpany and the Carnegie Steel Company
by which the latter vss to refrain from
building bridges and doing similar work
for ten years. I'm consideration Of this the
American ErdSe Company Was 10 pur-
chase all its steel end other material from
the Carnegie Comrany.
John c. Iangau. of Brooklyn, who at
one time was private secretary TO W. {.
Temple. was called Q" tell about the steel
plate. the steel shaft and the structural
steel pools 81 which Mr Temple was com
missioner
These pools M. Dickinson brought out.
we're quite similar TO the steel wire pools
~pnaryiseI ry f. T. Jackson. lr NJ. Ian
ean ssid That tho prices Of these products
s-.>s.,vuwvxsssr-wzsASUxezzxss1HM