Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1912-02-01

countries and increase the trade in
steel products therein.
IF any of the companies acquired
by the Steel corporation the ans
wer declares, had been organized
for the purpose or with the effect of
restraining trade or commerce, or if
they constituted an attempt at mon
opoly or a monopolization of trade
or commerce, neither the organizers
of the steel corporation nor the said
corporation had any knowledge or in
formation thereof when the said COM
panies were acquired"
PURPOSES MADE PUBLIC.
Continuing the answer recites that
the steel corporation made it's pur-
poses and the details of the organ
ization public in a variety of ways,
and says that the attention of the Of
ficers of the United States govern
ment was particularly directed to
said organization at the time it was
effected. Only within a few months
has any department or responsible
Office of the government criticized
the steel corporation as being a COM
bination in restraint of trade, or a
monopoly.
The answer then sets forth that
the steel corporation has cheapened
the production of steel to the con-
sumner; that it has increased its for
eign trade from SS,000,0OO in 1901
to S60,000,000 in 1911; that it has
not suppressed competition; that
the number of its competitors in the
United States has largely increased
since 1901, and that it's stock has
been sold several times over and is
now held by multitude of small in
vestors in this and foreign countries.
The defendants then submit:
THAT after acquiescing in the Or
ganization of the steel corporation
for so long a time and after rights
of so sacred a character have grown
up Hereunder, and it is now too late
for the government to insist in a
court of equity that such organiza-
ton was in itself and without regard
to its after practices an illegal thing
TENNESSEE DEAL.
the proposition to purchase a major
ity of the stock of the Tennessee Coal
and Iron company come from Grant
B. Schley and was taken up on ac-
count and only on account of the rep
reservations made on behalf of said
Schley that nothing but such pur-
chase would save Moore & Schley
] 70 Nil
of the Steel corporation went to see
the president of the United States
on November 4, 1907, and laid the
situation before him. The answer
denies that Messrs. Gary and FricB
failed to disclose to the president all
the facts bearing upon the proposed
purchase or the occasion for making
the same which were pertinent there.
to, or that they made any misstate.
ment or misleading statement of any
sort or character to the president re
garding the financial situation in
New York or regarding the wishes
or attitude of themselves or the stee
corporation with respect to the pro-
,posed purchase" 1t admits THAI
the president stated that he did moi
feel 1t to be HIS duty to prevent the
proposed transaction and say that IL
reliance upon said statement Messrs
Gary and Fr;ck returned &c New
York, whereupon the purchase wal
completed" The answer denie.
that the Tennessee company was q
strong present or probable futur,
competitor Of the steel corporation
at the time of It's acquisition by tn,
latter"
NO OPPRESSIVE ACTS.
The answer says that Continuous
ly since the organization of the stee
corporation it has been the declare.