The Birmingham age-herald., 1913-01-24
Was Competitor of Steel
Corporation in the Rail
Market Prior to
Acquisition
TESTIMONY SUPPORTS
GOVERNMENT CHARGE
AGAINST CORPORATION
Understanding" to Maintain Prices
by Executive Board of Corpora
tion, Says Corey-Shut Down
Furnaces to Maintain the
Price of Pig Iron

New York, January 23.-Willam Ellis
Corey, former president of the United
States Steel corporation. again a witness
today in the hearings of the government
suits to dissolve the corporation under
the Sherman ANTITRUST, gave further
testimony in support of government
charges that the corporation is mo-
nopolistic combination.
He testified that understandings to
maintain prices were reached at the fa-
nous Gary dinners" given in New York
by Judge e. II. Gary, chairman of the
executive board of the corporation at
which a large majority of the steel man
rfacturers of the country were repre-
sented.
lie gave testimony the first adduced
from any witness in the suit, it was said
as to the existence of an international
armor plate pool in which the corporation
had participated. He confirmed In sesti-
mony existence of plate and struc-
tural" pool, and declared Judge Gary mad
Rad knowledge of ii. lie said he him
self had given orders for closing down
blast furnaces of the corporation TO MAIN
tain the price of pig iron. He said steel
rails sold lower to foreign consumers tnan
to domestic and he furnished testimony
Intended to prove that the Tennessee Coal
and Iron company was a competitor OF
the steel corporation in the rail market
prior to its acquisition by the corpora
tion.
Clashed With Judge Gary
Mr.. Corey, who resigned as president
CT the corporation in 1910, made 1t plainly
| evident in his testimony that he had in
many respects clashed with Judge Gary
and members of the finance committee
in matters of policy He declared he
had never favored the lease of the Hill
ore lands by the corporation in 1907
which was abrogated by the corporation
almost coincidently with the filing of the
present suit.
I'VE paid double the price the ores
were WORTH he said. adding tl.lt the
finance committee had overruled him.
on the question of maintaining prices
through the agencies of the Gary din
ners Mr.. Corey said he had been In Ia
Nor of competitive conditions. and that
prices were maintained longer than !
deemed advisable. His testimony in re-
card TO tleSe ulnneIs Was III Nlit'i VII
! tradiction. il was pointed out by counsel
tonight. TO what the Steel corporation
/ said in its answer to the government 8
complaint This denied that "at any of
said meetings or at any other time and
place there was any agreement or un-
derstanding that prices should be MAIN
tained."
The Gary dinners which began in
1907, took the place, the government MAIN
/ Of noOlg I'm maintaining
prices in the steel trade. In his testi-
monv concerning number of these pools,
Mr. Corey said the Steel corporation was
| represented in the plate and structural
pool by the Carnegie Steel company.
He admitted that the pool divided bus
mess and imposed penalties when the
business of a member exceeded its allot.
n erts.
Objects to Questions
"vas IL known at the executive offices
of the Steel corporation that subsidiaries
of the corporation were operating under
tie agreements which you have de-
seribed?'' asked Judge Jacob Nj. Dickin-
son. chief attorney for the government.
Before Mr. Corey could answer counsel
for the Steel corporation objected on the
ground that the term executive Of
fees was indefinite.
did e. II. Gary know about it?'
'.He did," said the witness.
Judge Gary in his testimony before the
Stanley Steel investigation committee
said he had put stop to the pools as
soon as he learned of their existence. lie
has not testified in this suit.
Tbe witness testified that combination
Of armor plate manufacturers In England.
France and Germany and the United
States had existed as late as 1904 or 1903.
The Carnegie Steel company and the
Bethlehem steel company were the Amer
,ear members of the combination, ne de-
ciared
What was the agreement or those IN
tho nool?'' Judge Dickinson asked
~ was not familiar with the details,
.sid Mr.. Corey He added that Col. Mil