New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-07
STEEL CORPORATION IS
PLACED ON TRIAL
Continued from hrst page.

|
in the domestic territory, but he found
that the agreement was being violated
by the American Steel and Wire Com
pany. which was selling horseshoes
/ there at lower prices. Jackson wrote U"
him that there must have been some
misunderstanding In the office of James
| F. Farrell. now president Of the Steel
Corporation, who was then connected
with the American Steel and Wire Com
pany.
To this Mr.. Holton answered: Here
after | am not going to be too careful
about the rules myself.
Mr.. L.indabury objected to all this tes-
timony as incompetent because the Steel
Corporation did not figure in these trans
actions at all Mr.. Severance then cross
examined the witness.
He brought out from Mr.. Holton that
the Horse Shoe Manufacturers Associa-
ton was dissolved in March, 1909,
through the withdrawal from it OF the
| American Steel and Wire Company. MIR.
Holton also said that the pool was
| formed early III IDol, btA'IO ''iO 'NN"'
| Corporation had been organized.
Gary Didn't Know Of Pool"
Another question elected the informa-
ton that Frank Baackes, vice-president
of the American Steel and Wire Com
pany had told Mr.. Holton that Judge
Gary never knew of the existence of the
pool.
Don't YOU know that as soon as Judge
| Gary found out that the pool existed the
American Steel and Wire Company with
| drew" asked Mr.. Severance.
Il don't know" was Mr.. Holtons an
! swer.
The witnesses scheduled for eXamina-
| ton to-day are Samuel j. Bayley. secre-
! tary to Edwin T.. Jackson, supervisor or
| the nine pools organized by him: FRANK
! Raackes. vice-president OF the American
! Steel and Wire Company, and George a.
! Cragin. an official Of the same corpora
! ton Mr. BaaCkes Is the man VINO or
| dered the destruction of a trunkful OF
papers which had been used In the gov
| ernment's criminal prosecution OF the
| steel wire pools last year and were eX-
peCted to help in the present equity ac-
| ton.
| The first witness yesterday was wal
| lace Buell.. now retired, but formerly
| business manager OF the Nashpurh-
Moore Company. OF Worcester, Mass.
and before that sales manager for the
! American Steel and Wire Company. his
| testimony established the fact that
| agreements To control prices In the
| barbed wire industry were entered INTO
| by n large number Of companies engaged
! in that production in the period from
| 1892 to 1906.
Tennessee Coal and Iron.
Through Mr.. Buell. came the first
allusion to the much discussed deal by
which the United States Steel Corpora
| ton absorbed the Tennessee Coal and
( Iron Company during the panic Of 1901
There was "A general expectation that
Mr.. Dickinson might intimate in some
way whether Theodore Roosevelt, who.
as President Of the United States gave
his consent to the transaction. would be
called as a witness or not But nothing
came that would permit "A definite eX-
/ pcctation.
The interesting ground was touched by
! Mr. Lindabury In the ss-eXaminauon
| of Mr. Buell.. He elected from him that
! the managershlp OF the Tennessee Coal
| and Iron Company had been offered To
him, and he made an examination OF the
| property. Mr.. Buell. said that the com
pany appeared to him poorly organized
| early IN 1901.
! was II not accepted generally in bust
moss circles that the Tennessee Coal and
! Iron Company was the largest producer
| Of coal and iron outside of the Steel
| CORPORATION" asked Mr. Dickinson.
1T was" came MIR. Ruelrs answer be-
! fore Mr.. Lindahury could object.
In your opinion could the Tennessee
! Coal and Iron Company produce cheaper
! than any other similar company IN the
! country"
1T could" was the answer.
Had All the Ore II Could Use"
| Mr.. Buell. said later that the Tennessee
| Coal and Iron Company had all the ore
! il could ever use. 1t was poorly organ
! lied at the time Of his inspection. he
said. but with proper changes IT would
have made formidable competitor Of
the Steel Corporation.
The interest centred in this part OF
! the testimony because of the Contradic-
tory versions that have been put forward
AS to the reasons for the course taken by
! ,x-Presidcnt Roosevelt in the matter.
The petition Of the government In the
dissolution suit said that President
Roosevelt was deceived by Ebert Ill.
/ GARY and II. G. Frick when they induced
! him to consent TO the absorFuo OF the
Tennessee Coal and Iron Company by
the steer Corporation.
! Mr. Roosevelt appeared before the
! STANLEY committee last summer and SAID
that he had acted with full knowledge;
that what he did was exactly right
and that If he were confronted with
/ similar situation he would do 1t again.
When the government filed It's petition
| three months later on october u, lHll,
IL contained the following paragraph:
The President was not made fully ac-
| ouaInted with the state Of affairs in New
| york relevant TO the transactions as they
| existed. II he mad been fully advised h"
would have known that desire 10 stop
| the manic was not the sole moving cause,
| lint that there also was the desire and pur-
| nose ia acquire control of company mat
recently had assumed position OF potential
| competition Of great Significance.
The Prssi lent, taken as lie was partially
| into confidence and moved by his apprecia-
ton OF the gravity Of the situation and the
necessity for applying what was repre-
| scnted 10 him TO he the only known rem
edv, stated that he did not feel it to be his
duty To prevent the transaction.
The government also contended that all
the principal companies merged into the
| Steel CORPORATION We're in themselves
combinations in restraint OF trade ana
besides asking for the dissolution OF me
steel Corporation II petltloned Tor the
| characterization of those subsidiaries.
|
NpW work. AT PANAMA FAIR