The Birmingham age-herald., 1912-05-07
DISSOLUTION SUIT AGAINST THE STEEL CORPORATION BEGUN Government Attacks One of Its Largest Subsidiary Companies HENRY T. BROWN. IS
 SPECIAL EXAMINER Two Witnesses Are Heard-Wallace Buell. and George E. Holton,
 Who Was Fined in So-Called
 Wire Pool Cases

New York. May 6.--The government began its suit to dissolve the United States Steel corporation today by att taking one of its largest subsidiaries, the American Steel and Wire company. with the intent to prove that since it's organization in 1899 down 10 a year ago 1t had been party to pools. agree ments or understandings to restrain trade. The testimony taken before Henry T. Brown of Philadelphia, spe- cial commissioner in the case, was given by two witnesses. Wallace Buell. of Port Chester, N. Y., retired inde- pendent wire manufacturer, and George F. Holton. president of the Bryden Horse Shoe company of Chatasqua, Pa. who. with others. was indicted and fined in the so-called wire pool cases about a year ago after a plea of nolo contendre.
 Seven Alleged Pools There are seven of these alleged pools named in the governments com plaint. Holton testified as to the for nation of the American Horse Shoe as- sociation in January, 1901, three months before the organization of the United States Steel corporation. The associa- tion. he said, was organized to fix the price of horse shoes and was composed of nine concerns, among them the American Steel and Wire company and his own concern. These. he swore, en- tered a pool agreement, a copy of which he produced, which provided al <.4 more than 5000 for the failure of any member to abide by it. The agreement was continued. he said, down to March, 1909, when the American Steel and Wire company withdrew
 Didn't Vice President Bachus of the American Steel and Wire company state in one of the meetings of the asso- citation that Judge Gary. chairman of the Steel corporation, had knowledge of this pool?" asked C. A. Severance, one of the defendants lawyers
 "Yes, he did" replied the witness, Judge Gary had no knowledge of it as far as I know
 Didn't the American Steel and Wire company withdraw from 1t because Judge Gary found it out?"
 T don't know"
 Met Informally
 Members of the association, including representative of the American Steel and Wire company met informally, however, after the dissolution of the pool About month after the New York grand jury investigation into the general wire pool situation was begun last year, the witness asserted, they were abandoned on the advice of Edward E. Jackson, the super visor of this and other wire pools who was himself indicted and fined.
 During the existence of the formal agreement, Holton testified it was Jack sons duty to name the concern which should accept the bids of the United States government.
 Holton read into the record a number of letters written by him to Jackson in behalf of his company in which lie ac- cused the American Steel and Wire com pany of violating the agreement to main- tain prices. One letter asserted that the trusts" subsidiary was "cutting prices on Honolulu business and unless some action is taken we shall see that we get our fair share of that business"
 May Last Two Months
 The taking of testimony probably will continue for two months. Hearings will be held in other cities and probably it will be as much as a year before the United States circuit court at Trenton. where the suit was filed, will take lp the evidence for judicial consideraticN
 Not only is the Steel corporation made a defendant but many of it's subsidiaries are named in the suit. J Perpont Nor gan. John D. Rockefeller, Andrew Car negie. George w. Perkins and Daniel G. Reid are some of the defendants.