Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-05-16
Government Contends PreSi-
dent Roosevelt Was Imposed
on by United Steed Officials
in Transaction.
BIRMINGHAM PEOPLE
A STRONG COMPETITOR
Former President of Alabama
Plant Says He Could Manu-
facture Rails Cheaper Than.
at Pittsburgh.
tBy Morning Journal special Leased wire.l


New York, May 15.--Taking the
testimony of John A. Topping chair
man of the Republic Iron & Steel
Co., the government lawyers, in the
suit to dissolve the United States
Steel corporation under the Sherman
law. laid the foundation today of evi-
dence by which they hope to prove
that the absorption of the Tennessee
Coal & Iron Co.. in 1907, was illegal.
The government contends that to
acquire the company. the corporation
took advantage of the financial diff
culties in the brokerage firm of Moore
& Schley the large holders OF Ten
nessee stock, and that when Presi-
dent Roosevelt was induced by Judge
Gary and Fl. c. F'rick to approve the
transaction because II was the only
way the firm could be saved and the
panic checked, the president was de-
ceived.
Mr.. Topping, who was chairman of
he Tennessee Company at the time,
gave testimony setting forth the value
of the company's properties at Biz
mingham, Ala, and nat facilities 1t
possessed for the manufacture of steel
and pig iron that would make 1t a
dangerous competitor of the corpora
ton. He said its ore and coal hold
ings exceeded those of any other steel
company except the corporation
That owing to the character of the
ores and the proximity OF the furnaces
1t could manufacture steel cheaper
than any concern in the country and
that IL was practically the only eon-
Germ equipped to make open hearth
rails, now in general use.
While much of Mr.. Topping's tesii-
mony was a repetition of what he
told the Stanley steel investigating
committee last summer, he added
some interesting information. The
corporation, although admitting that
the Tennessee Company was able to
produce pig iron cheaper than the
Northern Furnaces, maintains that
owing to the high freight rates the
company could not successfully COM
pete in the northern markets and was
an unimportant competitor.
Mr.. Topping was taken through the
details of the transactions leading up
to the acquisition of the Tennessee
Company, in which he had "a share
as q member of the syndicate OF
financiers, including John w. Gates,
Grant b. Schley, Earl Oglesby, Leon
ard G. Hanna and others, which OBJ
tanned control of the company In
1909. After saying that the syndicate
originally had no intention of selling
the property and that it's sole purpose
was to make money out of it by de-
veloping 1t, the witness said Schley
had made overtures for the sale of
his holdings to Lewis Cass Ledyard,
the lawyer, who finally negotiated the
deal for the corporation.
Did you hear or learn that Judge
Gary, Ledyard, II. c. Frick or the
steel corporation did anything to
bring about the situation that re-
quired the sale of this stock?" asked
r. V. Lindabury, of counsel for the
defense.
81 did not and do not believe any
thing like that was done
The witness reclted the now
story of the various meetings
Of the financier to take measures to
check the panic. including the Sun
day meeting at j. J.. Morgan's library. |
where the Tennessee zeal was alleged |
TO have been arranged between mem |
bers of the syndicate and Judge Gary |
and II. C.. Frick- for the corporation. |
Bearing on the allegations of the
government that there were price un- |
among steel manufactur- |
ers up to comparatively recent date,
Mr.. Topping testified to having noti-
led Judge Gary and other manufac-
Lurers of his intention to cut the price
Jf bars a year ago, before he publicly /
announced the cut. This was practi-
,ally the same testimony he gave be-
ore the Stanley committees.