The Sentinel=record., 1913-01-28
CAUSED TROUBLE IN THE STEEL BUSINESS BY REFUSING TO
 ABIDE BY AGREEMENTS
FILLING AGAINST SCOTCHMAN
Corey Has One-Fourth of His For tune Invested in United States Steel Securities, According to
 Ills Testimony.

New York, Jan. 27.--Testimony in support of the contention of the gov. ernment that Andrew Carnegie was trouble.maker in the steel trade and that the Carnegie Steel company was taken over by the United States Steel corporation because of his re. fusal to abide by agreements, was heard today in the government suit to dissolve the corporation under the sherman antitrust law.
 It was given by Walter Scranton former president of the Lackawanna Steel company. and other independ- ent concerns
 Mir. Scranton told of the various steel rail pools which existed in the steel trade before the corporation was organized in which the Carnegie Steel company invariably was mem Der. It appeared from his testimony that Andrew Carnegie was responsi ble for the dissolution of most of the pools.
 Did Andrew Carnegie's method Of competition give rise to any feeling OR the part Of manufacturers against his continuance in the business?' ask cd II. E Colton, of counsel for the government
 There was a general feeling that lt would be a God send if Andrew Carnegie was out Of the business, replied Mir. Scranton, with a laugh tn one instance. dating back to lS91, the Carneglt Steel company, accord ing to the witness. had an inside agreement" with the Illinois Steel company, which did not come to the knowledge of the other members of the pool until the two companies qnarreled. Then the pool broke up. Rails sold down to Sl4 ton after the break" said Mir. Scranton, which was way below cost"
 The dissolution of this pool, he said. led to a plan to organize the Empire rail company which was to be a selling company for all the manufacturers, but the plan fell through
 What individual was responsible for that?" asked Mir. Cotton.
 Andrew Carnegie. He could not agree with the other members" re- piled the witness.
 AJAU0t00tHtlts dllblHfA i1li DO0l was organized in which Chas. Nj. Schwab represented the Carnegie company, and Judge Ebert H. Gary, now chair man of the steel corporation, repre- scented the Federal Steel company We would meet and suggest price as among gentlemen, but as 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 Mir Cotton wanted to know if by the acquisition Of the Carnegie, the Federal and the National Steel companies, all con solicitations in themselves, the steel corporation did not acquire "a per centage of the rail capacity of the country sufficient to control the price of standard rails"
 T don't think they could control the price, but their suggestions would be favorably considered said tAe witness.
 MT. Cotton pointed to the fact that since the organization of the corpora tion, the price of rails had not varied from BPS ton.
 T should uhink that indicated thai some understanding existed said Alr, Scranton
 That one-fourth of the fortune oi Wm E Corey, former president ol the corporation, is invested in United States steel securities was brough' out today while Mir. Corey was wind ing up his testimony The informa ton was elicited from Mir Corey him self by the government counsel in an apparent effort to show that the wit ness had not been actuated in giving his testimony, considered by many favorable to the government Dy any animosity toward the steel corpora tion
 MT Corey said that he was natura' ly in favor of the success Of the cor poration in the present suit.