The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1912-02-08
OF the United States Steel
Corporation in It's An
swer Filed.
TO NAME EXAMINER
To Take Testimony in Suit af-
ter Government Makes
Its Reply.


TRENTON, N. j., Feb. with
the fling today of the answers OF
the United States steel Corporation,
its subsidiaries and individual de-
PENDANTS named in the government
suit to dissolve that corporation, be-
cause Of alleged violation OF the
Sherman antitrust law, all the de-
PENDANTS have been heard from.
The next move is for the govern
ment to file a replication, after
which the court win appoint an ex-
aminer to take testimony,
Besides the corporation, its sub
salaries and some of its directors,
the following individuals filed an
swers:
Andrew Carnegie, John D. Rookie
Teller, John d. Rockefeller, Jr.; E. c.
Converse and William P. Palmer.
They are a general denial of the gov
crnment's allegations,
Broadly speaking, the answer
Of the steel Corporation is a
general denial TO the allegations of
the government. 1t defends the or
ganizatfon Of the subsidiary compan-
les. denies that they were formed in
violation Of the Antitrust Act, claims
that they were normal and neces-
sary development of the times, and
insists that instead of restraining
trade or commerce, they have de-
veloped and increased the same.
The answer is made in the name of
the United States Steel Corporation
and its various subsidiary companies,
and it is Joined in by the following in
dividuals: j. Picrpont Morgan, Ell
bert H. Gary, Charles NJ. Schwab,
/, Charles Steele. Henry c. Prick, James
Gayley, william II. Moore, James H.
Moore, Perciyal Roberts, Jr, Daniel
G. Reid, Norman b. Ream, George
W. Perkins and Peter A. B. Widener.
The array of counsel includes Linda
bury, Depue & Faulke as solicitors,
aud Joseph II. Choate, John C. John
son, Francis Lynde stetson, David A.
Reed, Raynal C. Boiling and Richard
Y. Lindabury as counsel.
The answer begins with reviewing
the events that led up to the organi-
cation of the present steal corpora
ton and describes how the Federal
Steel Company acquired the Carnegie
Steel Company, the American Steel
and Wire Company, and others
through negotiations conducted by P.
p. Morgan and Company. Later,
when the need for additional ore sup
plies was felt, the Steel Corporation
acquired the properties of the Lake
Superior Consolidated Iron Mines. The
Steel Corporation was formed and its
properties acquired, the answer de-
clares, for the purpose of effectinG
economies by migrating the plants
and the processes employed in the
manufacture of Steel and to reach
the principal markets of the United
states and of foreign countries and
increase the trade in steel products
therein.
IF any Of the companies acquired
by the Steel Corporation" the an
swer declares, had been organized
for the purpose or with the effect of
restraining trade or commerce, or If.
they constituted an attempt at mo-
nopoly or monopollzatIon of trade
and 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"
Continuing, the answer recites that.
the Steel Corporation made its pur-
poses and the details of its organiza-
ton public in variety of ways, and.
says that the attention of the officers
Of the United State. government was
particularly directed to said organI-
zaton at the time ii was effected.
Only within few months has any de-
partment or responsible officer of the
government criticized the Steel Cor
poration as being combination in
restrain Of trade, or a monopoly.
The answer then sets forth that the
steel Corporation has cheapened the
production OF steel to the consumer;
that IT has Increased its foreign trade
from SS.oOO,OOO in 1901 10 500, oOO,-
600 in 1911; that ii has not sup
pressed competition; that the number
Of its competitions 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 null
titude Of small Investors in this and
foreign countries.
The defendants then submit:
THAT after acquIescing in the or
ganization OF the Steel Corporation
for SO long a timegand after rights Of
50 sacred character have grown IN
Hereunder, and it Is now too late for
the government to insist IN court Of
putty that such Organization was in
Itself and without regard to its after
practices an Illegal thing"
The answer further declares that