Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-01-28
Witness Charges That Mae
nate Violated Agreements
and Brought on War Betwee
Various Plants,
C0REY'S TESTIMONY
BROUGHT TO A CLOSE
Former President of Trust
Says 0no-Fourth of His For
tune is Invested in 1t, Wants
1t to Succeed,

lB, Morning journal special Ienseh Mlre.i
Now York. Jan. 21,~-lVsiimunN No
support of the contention OF the guVs
ernmcnt that Andrew Carnegie was a
trouble maker IN the steel trade and
that the Carnegie steel company WIS
taken over hy the United States Steel
corporation because of his refusal ta
abide hv agreements. was heard to-
day in the governments suit 90 dis
solve the corporation under The Sher-
man antitrust law. II was given by
Walter scranton. former president Of
the I.ackavanna steel company and
other INDEPENDENT concerns.
Mr. Scranton told OF the various
steel rul pools which existed Ia the
steel trade before the corporation was
organized ln which the Carnegie Steel
company. invariably was a member
u appeared from his testimony that
Andrew Carnegie was responsible for
,hc dissolution Of most of the pools
"Did Andrew Carnegie mcthoa of
competition give rise to amy feeling
on the part ef manufacturers against
his continuance Ia the business ~
asked NJ T.. Cotton. counsel for the
government
There was general feeling that
II would he "a Godsend " Andrew Car
nogic was out Of the business re-
piled Mr. scranton. With a laugh.
IN one instance. dating back 60
1897. the Carnegie steel company, ae-
cordlng to the witness hnd an 'tn-
side agreement with the Illinois
steel company which did not come
10 the knowledge ct the other mem-
I bers of the pool until the two COM
panies quarrelied Then the pool broke
up Rails sold down to Ylf a ton
after the break. said Mr. scranton,
(which WAS WY below cost. The dis
solution of this pool he said. led % Il
plan to organize the Empire Rail CONF
pany which WAS 10 he selling COM
pany for all the manufacturers, but
the plan fell through
What Individual was responsible
for that2" asked Mr. Cotton
Andrew Cafnegie Ne couldn't
ngrec with the other members" re-
piled the witness
subsequently another rail pool was
orranizcd iu which Charles NJ
schwab represented the Carnegie
company and Judge Flhert II Gary.
t lfNW iftNAi IfHH ~ iiAf N'N''i we fffft
don represented the Federal steel
company
"We would meet and suggest price
ns among gentlemen but ns often
we did not sell at the price agreed
upon. explained the witness This
was In 1900. The steel corporation
was organized in 1901, and Mr. Cotton
wanted 10 know If hy the requirement
Of the Carnegie. the Federal and tho
National Steel companies AN consoil=
dations in themselves the steel cor
poraton didn't acquire 20 percentage
of tine rail capacity uf the country
sufficient to control the price Of
standard rails"
II think they could control the
price ii their suggestions would be
iavorahly considered said The wit
ness. Mr. cotton pointed to the iaet
that since the organization OF the
corporation, the price Of raiis hau
noi varied from SIS a ton ~ atill
think that Indicated that some under
standing existed. said Mr. Scranton
"Thal fourth of the fortune Of
William T.. Corey, former president 81
the corporation, Is invested in INIT
I'd states steel securities, was brought
ont today while Mr. Corey was wind
ing up his teriimuny ihe niVfhia
tion W,ts elected from MI Corey hiiu-
self by the government counsei ia an
apparent EFFORT TO show that the wit
ness had not been actuated la giving
his testimony considered by many
favorable to the government, by amy
animosity toward the steel corpora
tiOn
Mr. Corey announced that nc was
naturally in favor Of the success oi
the corporation IN the present suit
The case Of the government which be.
gan I'M October, 1911, probably viii be
completed tomorrow. The taking Of
testimony by the defense viii not be-
gin until after a recess 10 allow conn-
sci for the corporation 10 arrange
plans for calling witnesses. These
probably viii include Judge Gary,
James a. Farrell president of the cor
poration. and number Of The defen
dants whom tile government did not
subpoena