Norwich bulletin., 1912-05-07
To Fix Prices
 Of HOrseshOeS
NINE CONCERNS FORMED POOL
 FOR THIS PURPOSE.
SUBJECT TO PENALTIES
Fines of from $500 to s1,ooo for Fail ure to Live up to Agreement-SteeI Trust Dissolution Suit.

New York, May 6.-The government began its suit to dissolve the United States Steel corporation today by at tacking one of it's largest subsidiaries, the American Steel and Wire company, with the intent to prove that ever since it's organization in 1899 down to a year ago it had been a party to pools, agreements or understandings to re- strain trade.
 The testimony, taken before Henry P. Brown of Philadelphia, special com missioner in the case, was given by two witnesses, Wallace Buell. of Port chester, N. Y, a retired independent wire marufacturer, and George B. Hol- ton, president of the Bryden Horse Shoe company of Catassuqua, Pa., who with others was indicted and fined in the s0-called wire pooT' cases about a year ago, after plea of nolo conten- dres.
 Fixed Price of Horseshoes.
 Seven of these alleged pools, cover ing different kinds of wire, are men tioned in the governments complaint, and Holton testified as to the forma- tion of the American Horse Shoe asso- citation in January, 1901, three months before the organization of the United States Steel corporation. The associa- ton, he said, was organized to fix the prices of horseshoes and was composed of nine concerns, among them the American Steel and Wire company and his own concern. These, he swore, en- tered into a pooling agreement, copy of which he produced.
 Penalties Provided.
 It provided penalties of not less than $500 or more than $1,00O for the failure of any member to abide by it. The agreement was continued, he said, down to March, 1909. when the Amer ican Steel and Wire company with drew.
 Did Vice President sBackus of the American Steel and Wire company state in one of the meetings of the association that Judge Gary, chairman of the steel corporation. had no know ledge of this pooI?" asked c. A. Sev- erance, one of the defendants lawyers
 Yes, he did" replied the witness Judge Gary rad no knowledge of it as far as I know"
 Didn't the American Steel and Wire company withdraw from it because Judge Gary found it out?"
 That I don't know. I only know that the American Steel and Wire company got out
 Every Man Knew the Other Man:
 Price.
 The members of the association, in. | cluding q representative of the Ameri- can Steel and Wire company, met in- formally, however, after the dissolu- | tion of the pool until about a month after the New York grand jury inves- | tigation into the general wire pool sit uation was begun last year, the wit ness asserted. They were abandoned then, he said, on the advice of Edwi1 E. Jackson, the supervisor" of thi! and other wire pools, who was himsel indicted and fined.
 At those informal meetings we ex changed information, and every mai knew what the other mans price would be the next day" said Holton, wht added that although under the new ar rang9ment prices were not always uni form, there were five or six companies including the American Steel and Wir company, which usually named tn same prices. During the existence 0 the formal agreement, Holton testified it was Jackson's duty to designate tn concern which should accept the bid of the United States government.
 American Steel Cut Prices. 1 IO4tOH I6du lllO lIe record a mum Der of letters written by him to Jack son in behalf of his company in whicl he accused the American Steel an Wire company of violating the agree ment to maintain prices. One lette asserted that the trusts subsidiary wa cutting prices on Honolulu bushes and unless some action is taken w shall see that we get our fair share o that business" In another letter HoI ton remarked that inasmuch as tn American Steel and Wire compan, l did not seem to have a clear under standing of the agreement, it woul be well for us not to have clear un derstanding also"