The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-05-20
STEEL TRUST JUST
TOOK IN" RIVALS,
SCHWAB DECLARES
Didn't Want Competition, So
Even Threats to Make Rails
Meant Freeze.Out.

Charles n. schwao. the IRE, presl-
dent Of the United States Steel Corpo.
ration. resumed his testimony to-day In
the Government suit to dissolve the Cor.
poration on the ground that II violates
the Sherman law. The Government Ia
represented By Judge Dickinson and n.
Q. Cotton. and the Corporation BY
Richard v. L,ndabury and @. 4. Sever
ance.
Mr. scawAb yesterday denied there
had been any pools or working agree
ments after the formation Of the United
States steel Corporation. lie IL now
Preslden, Of the Bethlehem Steel Com
pany. . iva, OF the steel Corporation.
He said It would be impossible for the
Corporation 2, drive competitors out
Of business; In fact. competition had
been stimulated.
Mr.. schwab said to-day there ware
frequent breaks In rail pools and 70.
arrangements.
"Durins such breaks" he said. I'VE
would go into any territory where We
could do business. To do business We
would frequently lower our prices"
Judge. Dickinson questioned Mr..
scINab about rail- pools In 1907. The w.t.
ness admitted that the Carnegie Steel
Company met the Illinois Steel Com.
psny In competition In the markets OF
Chicago. Cincinnati, and the Laoka.
wanna Company In Cleveland. He 70.
peatsd that there were \ great num-
Der OF small rail makers who were
small manufacturers In the pool.
We did not want competitors" he
swore. and II any one even threat
ensd to 20 Into rail making. even
though on q small scale. we took them
In In order to control prices"
Mr.. Schwab declared the Carnegie
Company was financially strong, bu,
At times II was necessary to stop con-
struction work until more money WA
available. In iso9. for consideration u
100000. his company had stayed out Of
the glrdsr-raii manufacture. The com.
pany had spent $4,000 TO equip 4 plan,
and had engaged salesman for
vtsuOu, Uuk NueI tUC W0D m8ou, ~
Was considered favorsbiy. Mr.. SohwAl
said he had not entered into foreign
pool. although the English msnufac'
turers had offered an allotment nj
10000 tons yearly In England and
Cansda.
There we're . number OF pooisr
asked Judge Dickinson.
Eyes. They were going on all the
time"
But when the corporation va,
formed. these pools stoppsd7" askot
counsel.
They tried 70 stop" answered thu
witnssS amid n hearty laugh.
Judge Dickinson read minutes Of meet
,ASs Of the Carnegie Steel Company
One referred 70 the plan 10 form In
Empire Rail Company. To sell Ill tn
rail products. The scheme vas aban
donsd Mr.. Sohwab testified. BY dirsc
don OF Mr. Carnegie. who declared
would he q trust and therefore open 4
attack. The Presidents Of the oompan
iss had agreed 70 the plan and ell ha.
assembled In Jersey City to Sign nee
ossary papers, but when the CarnsSi
withdrew the pool ras abandoned,
Mr. Schwab said his company nevs
received y consideration for stsyin
out Of the car business.
TT would not be an unusual thing,
he said, FOR us to accept money /
keep out Of the market on csrtai
products. We had an agreement wit
tho Illinois Steel Company that each q
US should make the same amount q
rails annually. II the Carnegie sol
more than the Illinois settlements wsr
made on an equal basis. Whereas
freight rates were equal We considere
II IN open contract"
Mr., schwab testified to meeting Il
:. rail- makers" In New York n lsy
when the price for rails WA fixed q
' sxs. ION the product OF steel rails" 4,
y clarsd Mr.. Schwab. "thers was no con
: petition In iss9 between tho Carney
- and illinois, steel Companies, for "
divided the ouslmers under Tho 90
agreement"