The Birmingham age-herald., 1912-05-16
Former Chairman of Cor p0ration Testifies in
 Steel Suit
ABLE TO PRODUCE
 IRON AT LOW COST
Could Put Ton of Iron Into Cincin- nati as Cheaply as the Pittsourg Furnaces, He Says-Com-
 pany Had Heavy Orders

| New York, May 15.--Taking the tes-
 timony of John A. Topping, chairman
 of the Republic Iron and Steel com lpany. the government lawyers in the suit to dissolve the United States Steel lcorporation under the sherman anti
 trust act laid the foundation today of evidence by which they hope to prove that the absorption of the Tennessee Coal and Iron company by the corpor- alton during the financial panic of 1907 was illegal
 The government contends that to &C., quire the company the Steel corpora l tion took advantage of the financial difficulties of the banking firm of Moore & Schley, the large holders of Tennessee Coal and Iron stock. and that when President Roosevelt was induced l by Judge Gary and H. c. Prick to ap- prove the transaction on the ground that 1t was the only way in which the firm could be saved and the panic
 checked. the President was deceived as to the real object of the corporation. Topping Tells of Value
 l Mr Topping, who was chairman of the Tennessee Coal and Iron company when it was taken over, gave testimony
 today setting forth the value of the
 company's properties at Birmingham
 and what facilities the company pos
 scssed for the manufacture of steel and pig iron that would make 1t d dan gerous competitor of the corporation. ceeded those of any other steel com sts
 Steel corporation; that owing to the
 character of the ores and the prox-
 unity of the furnaces to the mines It could manufacture steel cheaper than any concern in the United Staets at
 that time and that 1t practically was the only concern equipped to manufac- ture open hearth rails. now in general use.
 While much that Mr. Topping testified
 to was repetition of what he told the 1 Stanley steel Investigating committee last summer, he added some interesting in-
 formation. The corporation. although
 admitting that the Tennessee Coal and
 Iron company was able to produce pig
 iron cheaper than the northern furnaces. maintains that owing to high freight rates the company could not successfully compete in the northern markets.
 Cost of Production Was Low l Could you put a ton of pig iron in l Cincinnati Is cheaply as concerns in Pitts 1 burg and Chicago could?' asked Judge l Dickinson of counsel for the government
 Yes, we could save enough on the cost | of production to overcome the freight rate charges replied MT. Topping He | said that at the present time pig Iron from the southern mills of the Republic Iron and Steel company was being sold at a profit in Chicago.
 MT Topping was taken through the de- tails of the transactions leading up to I the acquisition of the Tennessee Coal and Iron company in which he had share as meQper of the syndicate of finan- cers which obtained control of the com pany in 1904 The witness stated that i Grant B. Scnley had made overtures for the sale of his holdings to Lewis Case 1 Ledyard. the lawyer, who finally negotf- ated the deal for the corporation.
 1 .'Did you hear or learn that Judge l Gary. Ledyard. H. C. Prick or the Steel 1 corporation did anything to bring about the situation that required the sale of