Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-23
ADMITS STEEL POOL
William E. Corey Testifies at
Government Hearing.
UNDERSTOOD FOUR YEARS
Former President of Corporation
Gives First Direct Testimony
of Its Existence.

NEW YORK, January 23.-The United
States Steel Corporation and the Bethle-
hem Steel Company participated for
four years in an international pool in
armor plate, which divided up the bust
ness of neutral markets" William +.
Corey, former president of the steel
corporation so testified today at the
hearings in the governments suit to
dissolve the corporation under the Sher-
man antitrust law. II was the first di
rect testimony which the government
has been able to obtain as to the exist
ence Of such a pool.
Mr. Corey. who resigned as president OF
the steel corporation in 1910, was unable
to recall today that the armor plate pool
had existed until his memory had been
refreshed by the reading of the minutes
of the Carnegie Steel Company. quoting
him as advising against joining with the
''armor combination" in the erection of
an a-mor plate plant in Japan. This was
in 1902 shortly after the organization
of the steel corporation.
Combine in Armor Plate.
The witness then testified that a COM
bination of armor plate manufacturers
in England, France and Germany. and
the United States. had existed as late
as 1904 or 1906" The Carnegie Steel
Company and the Bethlehem Steel Com
pany were the American members of the
combination he said.
what was the agreement of those In
the pool?" asked Judge Jacob NJ Dick
inson. attorney for the government.
IT was not familiar with the details,
said Mr. Corey, adding that Col Willard
Hunsicker representative of the Car
negie Company abroad. conducted the ne
gotiations.
Foreign Trade Not Sought.
The witness testified that during the ex-
istence of the agreement the American
members had not, to his knowledge. at
tempted to compete for armor plate
either in England. France or Germany.
Ibid the foreign firms bid for United
States government contracts he was
asked.
that the United States government con-
tracts in armor plate shall be given only
to American manufacturers, was the
reply.
Corey's Testimony Yesterday.
Mr. Corey yesterday furnished the gov
ernmen with the first testimony it has
been able to obtain in support of it's al
legation that the corporation participated
in an International steel rail pool.
Mr. Corey followed Theodore Roosevelt
on the stand after the latter had re-
peated his testimony given before the
Stanley steel investigating committee
concerning the acquisition Of the Tonnes
see Coal and Iron Company by the cor
poration during the panic Of 1907.
Mr.. Corey testified In a room In a down.
town office building. He said that as late
as 1910 an understanding had existed with
foreign rail manufacturers, under which
the steel corporation agreed not to COM
pete with them In their own countries,
and foreign manufacturers in turn agreed
not to seek business in the United States.
ut was understood" said Mr.. Corey.
neutral markets. countries which did not
produce steel rails
Understanding as to Prices.
Whether in these markets there was
any understanding with foreign producers
as to prices and a division of tonnages
the witness professed Ignorance.
WAS Mexico assigned to any one?" |
asked Judge Dickinson.
81 don't know about that
Mr.. Corey explained that he had had
little to do with making the arrangements
himself. but had gained his knowledge
from James A. Farrell when in charge of
the corporations export business, who
has since succeeded the witness as presi- |
dent of the corporation.
Mr.. Corey testified to the existence of |
a steel rail pool among American manu- !
facturers as late as 1904 under which |
prices of rails were kept on an even keel
and business divided. In this the steel
participated. he said. and was
represented at meetings by Judge Ebert
"A Gary. Charles NJ. Schwab or himself /
Mr.. Corey testified further that one of /
the reasons the Union Steel Company was /
taken over by the corporation was that 1
ut was getting customers from the Car
negie company"
As soon as the corporation secured con-
troll blast furnaces belonging to the
sharon company. a subs diary of the |
Union. had been dismantled. he said.