Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-05-08
Samuel ], Bailey Testifies in
Suit Against Steel Trust that
Bids Were Agreed on to Sup
ply Govrnment,
PROFITS PRORATED
TO COMPANIES
SkiIIfuI HoIdup Game is Shown
to Have Been Practiced in
Furnishing Such Supplies to
United States,
IBy Morning Journar special Leased wlre,I

IBy Morning journal special Leased Wlre,I
New York, May THE American
Steel e. Wire Company, one OF the
biggest of the subsidiaries Of the
United states Steel corporation, was
a partner TO pool agreements with
other manufacturers whereby prices
on United States government bids
were fixed and the business divided
among the pool members. according
to the testimony today in the govern
ment suit to dissolve the corporation.
The testimony was given by Sam
uel j. Bailey, Of the office OF j.. T..
jackson, supervisor OF the wire
pools, whose members were indicted
and fined year ago, Saiiey acted as
secretary of the Horse shoe Manu-
facturers Association, one OF the
seven pools.
The evidence was introduced by the
government in support OF its conten-
tion that the American Steel IL Wire
Company was itself an Illegal combi-
nation.
Bailey said prices were changed
when necessary at monthly meetings.
Each member was allotted certain
percentage of the business and in
case his monthly sales exceeded his
allotment he WIS 10 pay cash into
the association equivalent TO the
amount of the excess. II they were
less, the association was to make up
the deficiency,
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.
Jackson fixed the price Of the
Inx ..AE4f 1t a L.. es1
the other members to bid one or two
cents keg higher The members
were given an opportunity to bid for
the government business in turn SO
that everybody was about even at
the end of the year"
Bailey Identified a number of let
ters written by Jackson per Samuel
j. Bailey" to the Dryden Horshoe
Company, fixing the price on govern
ment contracts.
one written In 1905 fixed the price
the Dryden company wac TO bid on
horse and mule shoes wanted by the
Isthmian Canal commission. The
Dryden Company's price on the shoes
was to be s345 a keg. New Orleans
delivery. but the American Steel &
Wire Company, the latter stated, was
to get the contract.
Another letlcr written November
Is, 1907, gave notification that the
quartermaster's department of the
army needed 7S0 kegs of horse shoes
and $50 Kegs OF mule shoes.
"rhis business may come to you
from jobbers at export prices" the
letter read. See that no export
prices are quoted to the jobbers.'
third letter concerning another
government bid stated that the Dia-
nond Steel Company is authorized to
bid the lowest. You viii submit the
price | have quoted you"
1t was brought out as point for
he corporation that the prices
quoted the government was from ten
O fifteen cents lower than the market
,ricc.
Cross examined by David a. Reid,
3ailey said that the pool was broken
ip In March. 1903. by the withdraw
Il Of the American steel a. Wire
company. 10 his knowledge none OF
he members of the executive COM
nittee had knowledge of the pool.