The Birmingham age-herald., 1913-01-28
ANDREW CARNEGIE
RESPONSIBLE FOR
D|SSOLWNG POOLS
Refused to Abide by Agree
ments of the Steel
Corporation
SCRANTON TESTIFIES
BEFORE COMMITTEE
Grasty Testifies Birmingham Ores
Better Situated for Assembling
Than Any Ore Properties in
World-COrey on Stand

New York, January 27.--Testimony in
support of tile contention of the gov
ernment 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 today
| in the governments suit to dissolve
the corporation under the sherman anti
trust law. 1t was given by Walter
Scranton. former president of the Lack
awanna steel company and other inde-
lpendent concerns.
! Mr.. Scranton told of the various steel
rail pools which existed In the steel
trade before the corporation was or.
ganized in which the Carnegie Steel
company invariably was member. 1t
appeared 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
II. T. Cotton, OF counsel for the gov
ernment
Sold Below Cost
There was a general feeling that ii
would be a godsend If Andrew Carnegie
was out of the business" replied Mr..
Scranton with laugh In one in
stance, dating back to 1897, the Car
negie Steel company. according to the
witness. had an inside agreement" with
did not come to the knowledge of the
other members Of the pool until the
two companies quarelled. Then tho
pool broke up. Rails sold down to s1l
a ton after the break said Mr.. scran.
ton, (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 sell
ing company for the manufacturers.
but the plan fell through.
"What Individual was responsible for
that?" asked Mr. Cotton.
ANDREW Carnegie. lie could not
agree with the other members" replied
the witness
Another Pool Organized
subsequently another rail pool was
organized in which Charles M Schwab
represented the Carnegie company, and
Judge Ebert Gary, now chairman of
the Steel corporation, represented the
Federal Steel company
I'VE would meet 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
1900. The Steel corporation was or.
ganized in 1901, and Mr.. Cotton wanted
to know II by the acquirement of the
c,arneyie, the Federal and the National
Steel companies, all consultations in
themselves, the Steel corporation did
not acquire "a percentage of the rail
capacity Of the country sufficient to
control the price Of standard rails?p
II don't think they could control
the price but their suggestion would be
favorabIy considered said the witness
Mr. Cotton pointed to the fact that
since the organization Of the corpor-
alton the price of rails had not varied
from s2s a ton.
II should think that indicated that
some understanding existed" said Mr.
Scranton.
That one-fourth OF the fortune OF
William f. Corey, former president Of
the corporation. is invested in United
states Steel securities, was brought out
today while Mr.. Corey was winding
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