Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-26
CARNEGIE WAS NOT
CONSPIRATOR, STEEL
LAWYER DECLARES
Reed Makes Ora m a tic
Speech in Suit Against
Trust" Quoting Mag
mates Remark to Morgan.

Andrew Carnegie against the charge of
q conspirator with j. Pierpont Morgan
and the United States Steel Corporation
in selling to It his interests in the corpora
tion. to restrain the steel trade of the
United States, was made today by David
a. Reed attorney for the corporation,
when the Government suit for the dis
solution of the Steel Trust was resumed
| before the United States Circuit Court
OF Appeals in the Federal Building.
| In opening his defense of Mr.. Carnegie,
| Mr. Reed read the statement made by
Mr.. Carnegie to ]. Perpont Morgan on
| the day he sailed for Europe, after he
| had sold his interests to the United States
| Steel Corporation. The statement was:
| Now, Pierpont, am the happiest man
In the world have unloaded this burden
| upon your back and l am Off to Europe
to play"
This" said Mr.. Reed. '1s the evidence
| OF the charge Of conspiracy brought
against Mr.. Carnegie by the Government.
| This meeting of Mr. Carnegie with Mr..
| Morgan, is the so-caled conspiratory
meeting on which the Government bases
Its charge against Mr.. Carnegie. Mr..
Carnegfe's purpose in selling his interests
to the United States Steel Corporation
was not to make money. but to rid him
self of the load and devote his entire
time to philanthropic work. Mr. Car
negie saw his opportunity to serve man
KIND In way In which no man could
serve before. And he rose to this on
portunity most magniflcently To apply
TO Mr.. Carnegie the appellation applied
to criminals is unworthy of the Govern
ment."
COTTON SPEAKS FOR GOVERNMENT.
Harry E. Cotton, who Is associated with
former Secretary of War Dickinson in
representing the Government in it's dis
solution suit against the United States
Steel Corporation. held the ear of the
court for more than an hour before
David A. Reed took the floor for de-
PENDANTS.
Mr.. Cotton devoted his entire time to
the subject of prices and the alleged
maintenance of uniform prices of steel
products for long periods after the for
nation of the Steel Corporation. Mr.. Col
ton charged that the uniform prices main
tained by the Steel Corporation and in
dependents was one of the results of the
Gary dinners which were attended by a
majority of the iron and steel magnates
OF this country.
Mr.. Cotton endeavored to prove the wit
nesses the Government has called and
the documents it has presented showed
clearly the United States Steel Corpora
tion assumed the lead in prevailing upon
independents to cooperate in keeping I'D
prices. In reply to the argument of the
defense that prices of steel have not
remained uniform during the past few
years Mr.. Cotton said the Steel Cor
poration had begun to reduce prices soon
after the Government had filed its suit, |
but that this reduction lasted but q brief |
time prices again rising to a uniform |
schedule.
Mr.. Cotton also endeavored TO prove
that the prices quoted by the Iron Age |
tended to show that prices were main |
tained uniform. by citing the prices in !
the Carnegie price book, which, he said. |
were identical with those quoted by the |
Iron Age.
Mr.. Cotton said the defense did "a
most outrageous thing when they quoted
prices that obtained In October. 1911, the
very time the Government filed its petit
ton
THE Government does not contend"
said Mr. Cotton, that since the Stanley
investigation the directors of the Steel
Corporation have dared to effect combi-
nations for the fixing of prices, as was
done in the days of pools and associa-
tons"
Mr.. Cotton also contended that whils
the general public Is compelled to pay
the prices set by the United States Steel
American Can Company and Standard
Oil Company were given rebates from
the ordered prices.
CUBAN AND GILLIAN ORES.
Mr.. Cotton rldiculed the contentious
of the defense as to the volume of
Chllian and Cuban ores available for
the use OF the steel companies of the
United States. Mr., Cotton said that no
Chilian ore was imported into this coun-
try and maintained that should its i'm
portation be undertaken lit was alto
gether a matter of speculation" as to
the amount of an export tax which may
be imposed by Chilli
On the question of Cuban ore, Mr..
Cotton averred the facts show that there
are in southern Cuba about 100000
IONS OF good ore. There are in the
lorthern part OF Cuba between 2OOOOOO
and 100000 of ore. with only about 35
Der cent OF iron content and this ore,
le said, has to be coked before II is
Ised: It has to be heated TO 1000 de-
srees."
The Cuban ore can hardly be considered
IS figuring in the case, the attorney for
he Government said The Pennsylvania
steel Company, Mr.. Cotton said. is said
o have l,40o. 600 tons of ore in Cuba
900 years supply.
What wonderful dgures"' exclaimed :
lr. Cotton. dramatically. Yet all but a
mall part Of that vast volume has been
imported into this country"
When Mr. Cotton dwelt upon THE in
egriIy Of the Steel Corporations lease j
# the Great Northern ore lands" Judge
Mcpherson asked whether it was not I'm
violence that that lease has been sur =
endeed. Mr., Cotton admitted this. and
that all that the Government j
was that it be declared Illegal >
For" he said, "at the time the Govern .
nent filed its petition the lease was In :
feet"
Yes" inteFjected Richard Y. Linda
ury. OF counsel for the defense. but il ;
3 In evidence that notice of the cancelIa- ,
ion Of the lease was given before the
stition was filed"