The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-01-28
TROUBLE MAKER
IN STEEL TRADE
Regarded as Godsend When
Andrew Carnegie
Got Out.
HE WOULDN'T STAY ''PUT
Witness Testifies That Laird O
Skibo Did Not Abide by
Agreements.

New York. January 27.-Testlmony
in support of the contention of the
government that Andrew Carnegie was
"a trouble maker in the steel trade, and
that the Carnegie Steel Company was
taken over by the United States Steel
Corporation because of his refusal TO
abide by agreements, was heard to-day
in the government suit to dissolve the
corporation under the Sherman anti
trust law. It was given by Walter
Scranton. former president of the Lack
awanna Steel Company and other in
dependent concerns.
Mr.. 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 ber-
II appeared from his testimony that
Andrew 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 the manufacturers against
his continuance in the business
asked II. +. Cotton, of counsel for the
government.
Carnegie Unpopular.
There was a general feeling that
10 would be a godsend If Andrew
Carnegie was out of the business.
replied Mr. Scranton, with d laugh.
In one instance. dating back TO 1897.
the Carnegie Steel Company. according
TO the witness. had an inside agree
ment" with the Illinois Steel Company
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
Sl4 a ton after the break" said Mr..
Scranton. which was way below
cost
trhe dissolution of this pool. he said.
led TO a plan TO organize the Empire
Rail Company. which was to be
selling company for all the manu-
facturcrs. but the plan fell through.
what individual was responsible
for that" asked Mr.. Cotton.
Andrew Carnegie He could not
agree with the other members. re-
piled the witness.
subsequently. another rail pool was
organized. IN which Charles VI. Schwab
represented the Carnegie Company
and Judge Ebert Garry. now chairman
OF the steel Corporation. represented
the Federal steel Company.
we would NEE: and suggest a price
as among gentlemen. but as often We
did not sell at the price agreed upon.
explained the witness This was IN
Icco The steel Corporation was or
eanized IN 1901 and Mr.. Cotton wanted
TO know II BY the requirement OF the
Carnegie. the Federal and the National
steel Companies. all consultations IN
themselves. the steel Corporation did
not acquire a percentage % the rail
capacity % the country sufficient TO
control the price OF standard rails.
4 don't think they could control
tho price. but their suggestions would be
favorsbiy considered eait the Wit
ness
Mr.. Cotton pointed 60 the fact that
since the organization Of the CORPORA
ton tho price OF rails bad not Nariei
from 81 a ton.
~ should thiuk that Indicated
that soms understanding existed. said
Mr.. Scranton
Corey Has No Antmo>ry.
That onc-forrfh % fhc fortune 81
William p. Corey. ne former president
o. the corporation. is invested o. United
states steel scCurlties wa- brought out
to-day while nff. COREY wa~ completing
hts testimony The Information VS.
elected from Nfr. Corey himself By the
government counsel IN an. apparent