Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-01-28
In Steel Trade Was Car
negie Says Witness.
Refused 10 Abide by Steel Pool
Agreements Wished Him Out.
Case Of Government In Antitrust
Suit Wilt Probably End, Today.

support of the contention of the gov
eminent that Andrew Carnegie was a
trouble maker in the steel trade and
that the Carnegie Steel Co., was taken
over by the United States Steel Cor
poration because of his refusal TO
abide by agreements, was heard to-
day, in the government suit to dis
solve the corporation under the Sher-
man antitrust law 1t was given by
Walter Scranton, former president of
the Laekawanna Steel Co, and other
Independent concerns.
Mr. Scranton told of the various
steel pools, which existed in the steel
trade before the corporation was or
ganized. in which the Carnegie Steel
Co. was invariably a member. 1t APP
peared from his testimony that An
drew Carnegie was responsible for the
dissolution of most of the pools.
Did Andrew Carnegie's method of
competition give rise to any feeling
on the part of manufacturers against
his continuance in the busness?"
asked H. e. Cotton, of counsel for
the government.
There was a general feeling, that it
negie was out of the business" re-
piled Mr.. Scranton with a laugh. On
an instance, dating back to 1897, the
Carnegie Steel Co., according to the
witness had an Inside agreement
with the Illinois Steel Co., which did
not come to the knowledge of the
other members of the pool until the
two companies quarreled. Then the
pool broke up. Rails sold down to
S14 ton after the break said Mr..
Scranton which was way below cost
The dissolution of this pool, he said,
led to a plan to organize the Empire
Rail Co., which was to be selling
company for all the manufacturers,
but the plan fell through.
What individual was responsible
for that?" asked Mr.. Cotton.
Andrew Carnegie He couldn't
agree with, the other members" re-
piled the witness.
Subsequently, another rail pool was
organized at which Charles NJ. Schwab
represented the Carnegie Co, and
Judge Ebert Gary. now chairman of
the Steel Corporation, represented the
Federal Steel Co.
We would meet and suggest
price as among gentlemen, but as Of
ten we didn't sell at the price agreed
upon,' explained the witness. This
was in 1900. The Steel Corporation
was organized in 1901 and Mr.. Col
ton wanted to know if by the ac-
quirement of the Carnegie, the FEEDER
al and National Steel Cos. all con-
solicitations in themselves, the Steel
Corporation didn't acquire "A per-
centage of the rail capacity of the
country sufficient to control the price
of standard rails
Il don't think they could control
the price. but their suggestions would
be favorably considered" said the wit
ness.
Mr.. Cotton pointed to the fact that
since the organization of the corpora
ton, the price of rails had not varied
from SIS a ton
should think that indicated that
some understanding existed" said Mr..
Scranton.
Ihat one-fourth of the fortune of Will
liam f. Corey, former president of the
corporation, is invested in United States
Steel securities was brought out. TODAY
While Mr., Corey was winding up his uu.
fnished testimony of last week The in
tofpiatlon was elected from Mr. Corey
himself by the government counsel in an
apparent effort to show that the witness
haa not been actuated in giving his pre.
Vlous testimony, considered by many as
favorable to the government, by any an.
mostly toward the Steel Corporation.
Mr.. Corey said he was naturally in fla.
vor 'of the success of the corporation in
the present suit"
The case of the government, which he.
gan IN October, 1911, will probably he
completed, tomorrow. The taking of tes.
umony by the defence will not be begun
until after recess is taken to allow
counsel for the corporation to arrange
their plans for the calling of witnesses
Ihese probably will include Judge Gary
James A. Farrell president of the corpor.
ation' and number of defendants whom
the government did not subpoena.