The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-01-23
Says That for Years 1t Has
Controlled Prices and
Maintained Pools
GOVERNMENT SCORES
IN DISSOLUTION SUIT
Theodore Roosevelt Asserts
Again Propriety of Action
in Tennessee Coal
and Iron Case

NEW YORK. Jan. 22.-With an
indulgent smile, William Ellis Corey,
former president of the United States
Steel corporation. placidIy admitted
today, before Henry 7. Brown. re-
fierce for the government in the suit
brought by the department of justice
to dissolve the trust, that the huge
concern for years has controlled
prices in the steel market, and that
1t has maintained a gigantic pooh
both here and in Europe.
The gobbllng up of smaller steel
plants that happened to stand in the
way of the United States Steel cor
poTauon was related by MIR. Corey
in an off-hand way. He grinned at
the governments inquisitors as he
told how the Steel trust formed an
understanding, as he called 1t, with
steel manufacturers in foreign coun-
tries, by which the steel trade was
companies would not conflict.
Earlier in the day, before the same
investigators, Colonel Theodore
Roosevelt. at a hearing at his edito-
rial Offices, reaffirmed his statement
before the Stanley committee last
absorption of the Tennessee Coal,
Iron and Railroad company. by the
Steel trust, ito save the panicky
situation that existed in 1907.
Would Not Affect Him.
Asked by his former secretary or
war, Jacob NJ. Dickinson. now a
special United States district attor-
ney in the Steel inquiry, if he did
not know that the Steel trust had
grown TO be the dominant power in
the field, crowding out its competi-
tors. the ex-president casually re-
Piled that, while he did not know II,
the fact would have had no effect
upon his action.
The inquisition here is aimed at
an effort to ascertain exactly what
agreements existed between the
United States Steel corporation and
other concerns engaged in steel man
ufacture to fix prices and control the
market output.
1nquisitor Dickinson, thinking that
Mr.. Corey would be reluctant wit
ness, was amazed at the easy calm
with which he spoke of the explicit
understanding" prevailing between
the steel trust and it's arrivals. and
OF the swallowing up process by
which the trust got rid of dangerous
competitors when it wanted to.
While Mr. Corey unhesitatingiy adj
mitted the steel trusts creed to doni-
nate the trade Of the country, he was
careful TO insist, each time, that
whatever was done was in the nature
of an understanding. and not an
agreement" Mr.. Dickinson drew no
distinction. however. maintaining that
an understanding" to thwart COM
petition and force a standard of prices
was plainly a violation OF the Sherman
antitrust law
Counsel With Corey.
Mr.. Corey appeared before the gov
ernment's iuquisitors Ranked by an
imposing array OF counsel. AMONG
them eX-Judge Richard V. Lindabury,
of New Jersey: c. A. Severance, r. C.
Boiling and Percival Roberts. The
former steel trust chief smiled as he
took n seat at the head of q table in
the investigating room at No. 220
broadway. He heamed upon the gov
errfne,t %,e>ouusel, and made himself
at home.
At the start OF the inquiry Mr..
Corey jumped into activity OF the
Steel corporation in fixing prices for
pig iron, which forms the basis OF
the steel industry. From 1908 until
the end of 1910. Mr.. Corey said. he
was president of the steel trust and
before that. for five years, was at
the head of the Carnegie Trust con-
pany,
In response to Il query of Mr.. Dick.
inson, the former Steel corporation
barometer of the steel trade" He
conceded that the Steel corporation
lind AK understanding wftff otnewTsteAf
companies throughout the country Iii
1905 To maintain a stable price for
the pig iron product.
The effect of this contract was to
sustain prices to the purchaser 2"
coaxed Mr.. Dickinson.
That was the purpose" was the
candid response.
Reads Minutes of Trust.
The government attorney dug out
minutes of the steel trust for 1903,
reading from them an expression by
E-Judge Gray, chairman of the
trusts executive committee. that 1T
is the opinion of the steel corpora
ton directors that the Carnegie Steel
company tits subsidiary buy pig iron
so as TO control the market
"Is that true expression of the
opinion of the steel trust directors at
that time" demanded MIR. Dickin-
son.
"At various times the Carnegie
company did buy pig iron IN an en-
deavor to maintain a price for tho
finished steel product" admitted Mr..
Corey.
Mr.. Dickinson explored the nIn-
utes further. and coming 10 a con-
ference of the steel heads later on.
asked If they mad not discussed shuf-
ting down some of the high-priced
furnaces opposed To the trust. rather
than sell pig iron to them at n cons
tract price below the prevailing fig-s
ures The witness pondered a MOS
ment and then responded:
'Ill say this, Judge Dickinson.
During the time | was president Of
the Steel corporation we purchased
mig iron when ii was needed in our
own plant, and when we cnuldntt
make enough Of ii ourselves
Protecting Steel Rails. Ri
Now, there were times when We
considered it advisable tn keep IN
the prices We would sell it at what
We considered tho right market pricos
and would not SO under that hgurNl