Norwich bulletin., 1912-05-08
Jackson Fixed
 the Lowest Bid
OTHERS WERE INSTRUCTED TO
 BID ABOVE IT.
THE HORSESHOE POOL
Each Member of Association Was Lowest Bidder in Turn on Govern
 nent contracts-Division of Profits.

New York, May 7.-The American Steel and Wire company, one of the largest of the subsidiaries of the United States Steel corporation, was a partner to pool agreements with other manufacturers whereby prices on United States government bids were fixed and the business divided among the pool members, according to tesl- mony given today at the hearing of the government suit to dissolve the corporation under the sherman anti trust law.
 Manaeement of Hohreshoe Business.
 The testimony was given by Samuel J. Bailey@of the office of B. B. Jackson, supervisor of the famous wire pools whose members were indicted and fined a year ago. Bailey acted as secretary of the Horseshoe Manufacturers as sociation, one of the seven pools, and explained ia .ietaiI toGay how the horseshoe business of the country was managed. The evidence was intro duced by the government in support of it's contention that the American Steel and Wire company itself was an 1lle- gal combination. Bailey identified a copy of the rules and regulations of the horseshoe association, explaining that the original rules as well as the minutes of the meeting at which they were adopted had disappeared.
 Division of the Profits.
 In brief. the rules fixed the price per keg at which all members of the asso- citation should sell horseshoes, prices changed when necessary, the witness explained, at monthly meetings. Each member was allotted a certain percent age of the business and in case his sales at the end of the month eX- | ceeded his allotment he was to pay cash into the association an equivalent to the amount of the excess. If they were less, the association was to make up the deficit by cash payments to him. A deposited penalty of s1,000 was pro- vided for violations of the rules.
 On Government Bids. In the case of government bids l Bailey said that Jackson selected the member who was to make the lowest bid and instructed the other members to bid higher,
 Jackson fixed the price of the low est bid," said Bailey, and instructed the other members to bid one or two cent sa keg higher. The members were given an opportunity to bid for l the government business in turn, SC that everybody was about even at the end of the year"
 Bailey identified a number of letters | writtea by Jackson, per Samuel ] Bailey" to the Bryden Horse Shoe company, fixing the price on govern menu contracts.
 Instructed as to Bidding Price.
 One written in 1906 fixed the price 1 the Bryden company was to bid or horse and mule shoes wanted by the 1 isthmian canal commission. The Bry- 1 den company's price on the horseshoes was to be $3.45 a keg, New Orleans | delivery, but t''e American Steel and l Wife company. the letter stated, was to get the contract.
 Another letter written Nov. 15, 1907 gave notification that the quartermas- ter's division of the army needed 7SC kegs of horseshoes and 75O kegs of muleshoes.
 This business may come to you from jobbers at export prices" read the letter. See that no export prices are quote dto jobbers."
 Bid Below Market Price.
 A third letter concerning another government bid stated that "the Dia- mond State Steel company is author ized to bid the lowest. You will sub- mt the DIT SSS nave quOtSu yOu. It was brought out as a point of the | corporation, however, that the asso ciation named to the government prices 10 to 15 cents a keg lower than the regular market price. Jackson, it ap- | peared from Bailey's testimony, has Jeff the country, having dropped out oi sight immediately after he was fined l in the wire pool case.
 Jackson, Bailey said, had charge o1 the minutes of the horseshoe associa- ton, which were kept in safe in the | formers office.
 q assume they were destroyed" said the witness. T lost them at the time the pool was abandoned" $350 Month to Keep Machine Idle.
 Bailey recollectedN being present at 8 | meeting at which he admitted it was agreed that the Standard Horse Shoe company was to be paid S350 a month to keep idle its patent machine fol manufacturing horseshoes.