The Birmingham age-herald., 1912-05-08
WIRE COMPANY WAS ,. A PARTY ID POOLS, |. SAYS 5. ]. BAILEY Clerk of Office Force of Supervisor" Testifies
 in Steel Suit HE IDENTIFIES s~ NUMBER OF Issy fERs
 SS Also Identifies Copy % les of Wire Pool by Which All : . .bers Were
 to Have an 2 Share

New York, May 1.-The American Steel and Wire company, one of the biggest of the subsidiaries of the United States Steel corporation. was a partner to pool agree merits with other manufacturers whereby prices on United States government bids were fixed and the business divided among the pool members according to testimony given today in the government suit to dis solve the corporation under the sherman anti~trust law.
 The testimony was given by Samuel q. Bailey of the office of E. E. Jackson. "su- pervisor of the famous wire pools, whose members were indicted and fined a year ago. Bailey acted as secretary of the Horseshoe Manufacturers association, one Of the seven pools, and explained in de- tail how the horseshoe business of the country was managed. The evidence was introduced by the government in support of its contention that the American Steel and Wire company was itself an illegal combination.
 Identifies Rules and Regulations
 Bailey identified a copy of the rules and regulations of the horseshoe associa- eicAt- tApidiiiAilb iiidl lilt OIlElildl d6 well as the minutes of the meeting at which they were adopted had disappeared.
 In brief the rules fixed the prices at which the members of the association should sell horseshoes, prices being changed when necessary, the witness ex- plained, at monthly meetings. Each mem- be- was allotted certain percentage of the business, and in case his monthly sales exceeded his allotment he was to pay cash into the association equivalent to the amount of the excess. If they were less the association was to make up the deficiency. deposited penalty of s1ooo was provided for violation of the rules
 In the case of government bids Bailey said Jackson selected the member who was to make the lowest bid and instructed other members to bid higher
 The members were given an opport,,n- ity to bid for the government business in turns so that everybody was about even at the end of the year." Bailey said.
 Bailey identified a number of letters written by Jackson "ber Samuel l. Bailey to the Bryden Horseshoe com pany, fixing the price on government con tracts.
 Letters Are Introduced
 One written in 1906 fixed the price the Bryden company was to bid on horse and mule shoes wanted by the Isthmian canal commissions The Bryden company's price on the horseshoes was to be S3. .45 Der keg. New Orleans delivery, but the American Steel and Wire company the letter stated. was to get the contract
 Another letter written November K 1907, gave notification that the quarter- masters department of the army needed 130 kegs of horseshoes and 75O kegs of mule shoes.
 This business may come to you from jobbers at export prices" read the let ter; 'see that no export prices are quoted to tho jobbers."
 A third letter concerning another gov ernnient bid stated that "the Diamond State Steel company is authorized to hid the lowest. You will submit the ,,rices have quoted you.''
 It was brought out as a point for the corporation, however, that tha as sociation named to the government prices 10 to Is cents keg lower than the regular market price.
 Jackson, 1t appeared from Bailev,s testimony, apparently had left the coun try.
 Had Charge of Minutes
 Jackson. Bailey said. had charge of the minutes of the horseshoe assocIa- ton.
 T assume they were destroyed, said the witness. T last saw them at ths time the pool was abandoned"
 Bailey remembered being present at q meeting when 1t was agreed that tho standard Horseshoe company was to be paid s350 a month to keen idle its patent machine for manufacturinc '''s
 Crcss- examined by David Raid Bailey said the pool was broker ,,-, in March. 1909. by the withdrawal of the American Steel and Wire cor,,,a ,,,
 How long did the pool last arter tbat?" asked MT Reid.
 About one minute.''
 To his Knowledge none of the nn.r hers of the executive committee of tha Steel corporation ever had knowledaa of the pool. he said. and none atterdes any of the meetings
 The suit was continued this afternoon with further testimony concerning inc wire pools in which the American steel and Wire company. one of the cornor- ations chief subsidiaries, Is alleged to have participated In. Wallace Buer inc retired wire manufacturer. who was dSheu ID ItiftsH ms memory previous fo the pooling agreement. was the first u,jt ness. NIT. Buell. was again asked to state what companies afterward in- as subsidia ries in the Amar ;can Steel and Wire company. Witness read the list contained in an applica- tion of the American Steel and Wire to list stock on the stock ex- change in 1899
 Much of the testimony had to do Ia leadipn i'm f<, nation of the American Steel and Wire company. The government contends if is itself a combination in restraint ,,f trade.
 How. in the early sos. it's original more than a score and a half in number, first competed among themselves as Independent companies and were then brought together into small combinations, these being gath cred finally as a grand comb bination under the control of the American Steel an1 Wire company of New Jersey was told by Witness I. E. Patterson. He was formerly connected with one of the c(,a. ( 1 tuent com binatfOuR