Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-29
DENY ALL CHARGES
Hill. and Associates Answer
Government Suit.
NO RESTRAINT OF TRADE
Admit Lease With Great Western
Mining Company.
BUT CONTEND IT NOT ILLEGAL
Have No knowledge Of Intent to
Throttle Competitors Of
Steel Corporation.
NO RESTRAINT OF TRADE
BUT CONTEND IT NOT ILLEGAL

TRENTON, n. j., January 29.-kellogg
| and Emery, counsel for the Minnesota
group of land and iron mining COM
panies.. named as party defendants in
the suit in the United States court here
by the government for the dissolution of
the United States Steel Corporation, filed
their answers today to the government s
allegations. There are three distinct
| answers, one by the West Missabe Land
Company. Limited, and seventeen other
land and iron mining companies; the Sec
ond by J. II. Gruber. individually, and
the third by Louis w. Hill, James n. Hill,
Walter ]. Hill and Edward T. Nicholas,
as trustees.
They deny that they have engaged in
any conspiracy in restraint of trade con-
trary to law
The trustees admit that on January
.. 1907, the West Missabe Land Company,
| limited, and certain of the other defend
ants entered into a certain indenture
| with the Great Western Mining Company
of Minnesota, which lease covered certain
| pieces OF land containing or supposed to
contain large tonnages of iron ore. They
| aver that they became parties to the
lease solely as the agents of the lessons
for certain particular purposes specified.
They deny the, defendant, ]. II. .Gruber.
Joined in, the lease as trustee or other
wise. They admit that the performance
of the stipulatiOns of the lease by the
Great Western Mining Company was
guaranteed by the United States Steel
Corporation. They admit that the lessees
agreed to mine the ore upon the terms
OF the lease and ship it over the Great
Northern railway, paying therefor a roy
| atty, and that 1t was provided that the
| lease might be surrendered January /.
| 1915 on giving at least. two years pre-
ViOuS notice In writing.
Deny Foresta1ling Competition.
| The defendants deny they became par
ties to the lease with the intent of pre-
venting the ore from being mined and
sold to independents or to prevent the
ore from being utilized TO build up a new
and dangerous competitor to the United
States Steel Corporation in the iron and
/ STEEL business. They deny knowledge
| whether the United States Steel Cor
poration had any such purpose in view.
They deny that the practical effect Of
the lease was to fOrestall competition or
to increase to any undue or improper
extent the United States Steel Corpora
tons control of the ore resources of the
country or to destroy or forestall COM
petItfOI HI orc. hey ScuS tHdC tue
royalty agreed TO be paid was unprece-
dentedly large pr in any wise in excess
of the true va1te of the considerations
granted by the lease.
| They admit that by the execution of the
lease the position of the United States
Steel Corporation was strengthened. but
they deny they became parties to the
lease with any intention to strengthen
the dominating or other position of the
United States Steel Corporation or for
any purpose other than the desire to turn
to account i'm a legal and proper man
. ner the properties and assets owned and
controlled by the lesser company.
Were Innocent Parties.
They deny any intent to shut off COM
petition by preventing the establishment
of competitor to the United States Steel
| Corporation Or to secure to that cor
poration an undue power over the steel
business by controlling the source of sup
ply of ore by taking 1T out of the mar
ket or otherwise, or to restrain trade or
commerce, or to create q monOponza-
| ton within the meaning of the anti
| trust act or otherwise.
| The defendants aver that whatever
| the effect of the lease may be, Or be
considered to be, the defendant COM
| panies were innocent parties thereto.
were not participants in any guilty or
| Illegal purpose or intent df any such
| United States Steel Corporation or the
| Great Western Mining Company enter
| tanned or may have entertained.
They deny that any system of inter
| exists or ever has existed whereby
| any Of the defendant companies were
| parties to the lease, are or have been
| officers or directors Of the United
| States Steel Corporation or of any
other constituent, subsidiary or con-
| trolled companies. or whereby any Of
/ the officers or directors of the steel
| corporation or allied companies be-
| came or are officers or directors of any
| Of the lesser companies.
Attended No Meetings.
| They deny that any of the defendants
have at any time participated ut any
meetings under the auspices of the United
States Steel Corporation or otherwise. of
representatives of any percentage or por-
ton of the iron or steel trade I'm the
United States. and they likewise deny
| that in any direct or indirect way they
have participated in any such meetings
or I'm any exchange of information, COM
mon understanding or expressions of
opinion or concerted action or declaration
of intention or policy laid out, or con-
sensus OF opinion or agreement or COM
binatiOn or conspiracy OF any nature
whatsoever, either with reference to chang
| ing or controlling prices of commodities
or Of any property whatsoever. or as to
OUTPUT, or as to any other matter or thing
VIVA tsoever They deny that by means
| OF any pools or agreements they have at
any time combined Or conspired in re-
straint Of trade or commerce among the
several states, or with foreign nations
within the meaning of section l of the
antitrust act. or to monopolize any part
Of the trade or commerce among the sew
eraI states or with foreign nations with
in the meaning Of section of the anti
trust act.
The seventeen companies that filed their
answers were the Wright, Davis, Wells