Omaha daily bee., 1912-05-15
REDS MEMORY VERY POOR
Member Of Finance Committee Test.
flies Unwillingly in Steel Trial.
HELPED ORGANIZE COMPANIES
He Traded His Holdings In the Tin
riass Combine for stock in the
United states steel
Corporation.

NEW YORK. May M-Dsnlel @. Reed
the railroad financier and former "tir
plate king" director and member Of
the finance COMMITTEES OF the United
states Steal corporation. was called a.
a witness yesterday at the hearing Of the
government suit TO dissolve the corpora
tion. 10 tell how the American Tin Plate
company was organised.
First Of the many prominent defendants
IN the suit TO appear on the stand. Mr..
Reid proved n poor witness for the gov
srnment and time and again his answers
10 questions regarding financial phases
OF the TIN plata company's formation was
= don't Remember or Il do not rsool.
isct."
His poor memory seemed TO exaspsrats
Judge J. N. Dickinson. chief counsel for
the government and promoted him to re-
mark:
You can bring a horse TO water. but
you can't make him drink: you can SUBJ
posna Q witness. but Il seems you can't
make him remember"
The government contends that the
American Tin Plate company. which be-
came . part OF the United States Steel
cooperation. wac In itself q combination
in restraint OF trade. and that It's stock
was watered. AR. Reid told how In ises he
and Judge william ~ Moore had wslded
the company together out Of about thirty
five tin plata concerns, representing at
that time some % per cent Of the In.
dustry. but upon tho question a. to what
the properties were worth. Mr.. Reds
memory was frslL He said 100000 In
stock went to the underwriting syndicate.
which financed the company. over and
above i5s,catoce preferred and common
stock issued In exchange for stock OF the
various plants taken over. He was un.
able to recall. however. how much OF this
sio.oooooo he received himself a. D mem.
Der Of the syndicate. or whether cash was
paid for any Of the plants Instead OF
stock. An efforts Of Judge Dickinson TO
refresh the witness memory by read
ing extracts OF testimony Mr.. Reid gave
before the Industrial commission IN 100
proved futile. Judge Dickinson pressed
the witness with equal lack Of success for
information concerning alleged contracts
BY which the American Tin Plate com
pany Is sald TO have prevented machinery
for tho manufacture OF tin plate from
being used by eompetltora
Ny mind Il perfect blank on that
subject" declared the witness.
Mr.. Raid admitted there was compstl-
tlon amonE The various constituent plants
before he and Judge Moore hroueh, them
sogether. but denied there was any In.
tcntion 10 monopolize the industry or
that there hsA been any efforts 10 sup
Press competition. Competition was fair
ana opsn." hs asserted.
Al the present tina. Mr.. Raid saId,
residing from statistics which he sx.
planned were compiled IN the offies Of the
steel corporation. competition had srowa
70 such an extent that the annual ca.
paeity Of the corporation's tin plate
plants was only III per cent Of the
eountry's total. a. compared with an
Independent capacity OF ga per cent
We figured that BY combination We
could buy supplies cheaper. reduce over. |
head charges and mako ths business more
explained Mr.. Reid. but per- |
slztenf dueationing BY Judge Dickinson |
clieitsd the answer that he might have
had the regulation Of prices In mind"
Prices Of Tin plata advanced after the |
organization OF the company. but thls
was due. he explained. to advances IN |
prices q steel and pig TN. over which |
he TN plate company had no control.
Moreover. he said. prices Of ia plata |
wers much higher in the years previous |
10 lbs than after. Judge Dickinson
brought out from the witness IN this con-
necfion that the National Steel company.
! manufacturer Of crude steel. was con-
trulied BY practically the sane inter-
ssts" that eentrosied the TIN piats cou,-
peny. This company. The American Sheet
Steel Company ana the American s,ess
Hoop eonpsny. were oFEznlzsz a. Gus.
tszners q the National Steel company.
II. hsst stated. ana Judge Moore. chief
1rsaniz-r q ali four. negotiated thstr
ssis 70 the United states Steel CORPORA.
Ifor throssh J. P. Morgan q Co. n.
stsel cerpor7fion only wanted the Ia
pi2ts eonpsny. he said. bus it uss ali
D. none
Nr. Rod natiy declined to tell ths
1ooari q stssi corporation stoek he re-