The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1912-02-08
STEEL CORPORATION
ENCOURAGES TRADE
IS DECLARED POLICY

Prick Of the Steel Corporation went
to see the president OF the United
States on the 4th of November, 1907,
and laid the situation before him.
The answer denies that Messrs. Gary
and Frick failed to disclose TO the
president all the facts bearing upon
the proposed purchase or the occasion
for making the same which were per-
tinent thereto, or that they made any
mlsstatement or misleading statement
OF any sort or character TO the presi-
dent regarding the financial situation
in New York or regarding the wishes
bury. DeDpue & Faulke as solicitors
Corporation with respect 10 the pro-
posed purchase" 1t admits that the
president stated that he did not feel
Iit to be his duty TO prevent the pro-
! posed transaction and say that in re-
lance upon said statement Messrs.
Gary and Frick returned to New
York, whereupon the purchase was
completed" The answer denies that
the Tennessee Company was strong
present or probable future competitor
OF the Steel Corporation at the time
Of its acquisition by the latter"
: The answer says that Continuous
ly since the organization OF the steel
Corporation it has been the declared
and consistently followed policy OF
said corporation to encourage rather
than to restrain the utmost freedom
of trade and commerce: to refrain
from acts of oppression or injustice
to the competitors Of said corporation;
to abstain from efforts to harass such
competitors or to exclude them from
their fair share of interstate or for
eign commerce. and TO take no steps
intended or calculated to prevent the
growth of other and further competi-
ton. and that such policy has been
well known throughout the industry
and to the public generally and the
government since the organization of
the Steel Corporation"
Referring to the meetings of the
steel manufacturers, Familiarity known
as the Gary dinners" the answer
says that at none of these dinners
was there any attempt to reach any
agreement of understanding with re-
spect either to output or prices, nor
was anything said or done which was
calculated or intended to suppress
competition or restrain trade, and
there never was nor is there now any
such agreement or understanding"
The concluding portion of the an
swer is as follows:
They deny that they have ever VIC
lated or attempted or intended to vio-
late the Antitrust Act or any pro-
visions thereof. Any they particularly
deny that they are now engaged in
violating said act or are threatening
or intending TO violate the same, and
they respectfully submit that in the
absence of such present or threatened
or intended violation this honorable
court is without jurisdiction to grant
the relief prayer for in the petition or
any part thereof or any other relief
in the premises, and they pray to be
hence dismissed"
John D. Rockefeller filed an
individual reply. He denies that he
had anything ia, do with the forma-
ton Of the United States Steel Corpor-
alton, and says that he was not a
member of any underwriting or other
syndicate relating to it and had moth
ing to do with Its management except
that he was a director from April G,
1901. to February 2. 1904. He says
that his only relation 10 the corpora
ton was his sale of the Bessemer
Steamship Company's lake feet TO the
corporation for cash and the sale oil
his interest. nearly the whole, in
Lake Superior Consolidated Iron
Mines, which owned extensive ore
properties in Minnesota. This he
sold at u price payable in steel pre-
ferred and common and made it al
condition that all other stockholders
Of his company should be offered the
same terms. He says that he sold af-
ter the Steel Corporation had been or
ganized and had acquired the Car
negie, the Federal and other com
panies, and in reliance on the fact
that the government had permitted
the completion of the steel corpora
tons organization and in the belief
that his sale of property to the cor
poration was in no way violation of
the Antitrust law. He denied ali
c Inclination in restrain of trade and
generally. and asserts that he had no
connection with the numerous com
pahies which formed the steel corpor-
alton, and asserts that he is not a
proper party to the case and that the
case ought to be dismissed as against
him.