New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-29
COMPETITION KILLED BY
TRUSTS FREIGHT RATES
Ore Expert so Testifies in Gov
ernment's Suit Against
Steel Corporation.
HILL ROYALTIES TOO HIGH
Witness Says Transportation
Charges Have Been Reduced
20 Cents a Ton Since Fed
eral Action Began.

Unreasonably high freight rates charged
by the United States Steel Corporation on
its orc carrying railroads in the Lake SUI
pcrior ore regions were the primary reason
why independents could not compete with
the corporation in that district was the
testimony given Yesterday by =. II. Nell
son, an ore expert, at the hearing In the
governments suit for the dissolution OF
| the alleged steel trust
This advantage enjoyed by the Steel
Corporation has eliminated all of its conf
| petitors in the development Of new mines,
| Mr.. Nelson declared. and his testimony
was regarded as bearing ont the govern
ment's contention that the lease OF the I'm
ore lands by the Steel Corporation had Sc
cured for it practical monopoly OF ore IN
the Lake superior district.
Supporting the testimony Of William f..
Corey. former president OF the Steel Cor
| poration. that the royalties paid TO the
! Hi interests for ore from the Mesaba
district were too high. Mr.. Nelson SAID
| the average royalties paid on ore IN l"'
| were around 80 cents a ton. while the cor
poration paid for the Hill ores So cents a
| ton.
| As to the development Of mines in that
region by independent companies, Mr..
| Nelson added. none Of them could have
paid such royalties because the Steel Cor
poration controlled the facilities for trans
I ,i,. OH 60 "A
high prices for the service 10 indepen-
dents. The freight rates charged netted
the corporation a profit OF - cents on
each ton carried by it's railroads, and this
was too large an advantage To be over
come by any independent enterprise, th'
| witness said.
The ore freight rates on the railroad
OF the corporation were 50 cents ton
prior To the Ming II the government s
suit. and have since then been reduced
10 co cents a ton. Mr.. Nelson expressed
the opinion that a rate OF ~ cents Ton
would be more reasonable.
! Cross examined b. David A. Reed. OF
counsel for the defence Mr.. Nelson was
asked whether, in the case of two neigh
boring truck gardeners. the man VINO
owned a horse and wagon 10 take ih(
produce To the market and was In post
ton 10 charge for carting the cabbagcs OF
his uolshbor was TO be restrained from
having the horse and wagon for tie SAKE
OF untrammelled competition.
II don't think So" was the answer. but
| think that his rates ought 10 be regu-
lated.
Mr. Nelson Will resume the stand this
| morning for "A short while. and the other
witness that Will be called by the gov
eminent Will he Frederick Strauss, OF
the banking firm of Seligman & Co, and
| william q. Gray, OF the American Iron
and steel Association. II is probable that
"A recess will be taken until February,
! though IL Is not certain whether the gov
eminent will close it, case or not.
In the absence OF Jacob VI. Dickinson
Yesterday Henry T.. Cotton said there was
"A possibility that the government would
not call any more witnesses. The defence
Will then get its opportunity, and among
the witnesses who will be called I'm be-
half OF the steel corporation viii be III
I bert H. Gary, chairman of the executive
committee: Charles NJ. Schwab. presi-
dent Of the Bethlehem Steel Company
James A. Farrell. president OF the steel
corporation. aud other active officials OF
| the corporation and its subsidiaries.