The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1914-10-20
GIANT U. S. Steel
CONCERN IN COURT


Ccntinued From Ftrst Page.
court is asked to divide under wholly
independent ownerships the following
companies controlled by the steel cor.
poration:
Companies Affected by Suit
The Carnegie Steel Company, of New
Jersey. National Steel Company, Amer
lean Steel Company, American Sheet
and Tin Plate Company, American Tin
Plate Company, American Sheet Steel
Company, Federal Steel Company,
American Steel and Wire Company, Ma.
tional Tube Company, Shelby Steel
Tube Company and the American
Bridge Company.
The court is also asked to make in.
dependent the Duluth and Iron Range
Railroad Company, the Duluth. Mis-
sabe and Northern Railroad Company,
the Tennessee Coal, Iron and Railroad
Company. Union Steel Company and
the Clarion Steel Company. and that
the ore and coal properties of the Unit
ed Steel Corporation other than those
of the Tennessee Company be divided
among the Clarion, Union and new
concerns to be created in proportions
to their capacity for the production of
steel.
Carnegie Party to Unlawful Deal
The court is further asked to decree
that Andrew Carnegie was party to
the unlawful combination of properties
through the United States Steel Cor
poration and took the bonds of the cor
poration with all the infirmities attach
ing to such participation.
Finally the court is asked to appoint
a receiver to take over all of tine prop.
critics owned or controlled bv the Unit.
ed States Steel Corporation and its sub
salaries for the purpose of making eff
teetive the decree of the court; that the
receiver recover from tine syndicate sub
seribers and promoters and others who
we're parties to the alleged unlawful
combination the difference between the
par value of the stock received by them
and the cash value of the properties or
the services given therefor, so that res,
titution, so far as possible, may be made
to the other stockholders.
Fifty-hve Volumes of Testimony
The testimony taken in the case is
each an inch thick. The government s
brief. formidable paper of more than
500 printed pages which has been filed,
reviews the evidence in the case and
argues the law points involved. Much
of the space of the brief is given up
to the Steel Corporation s acquisition of
tine majority of the stock Of the Ten
nessee Coal and Iron Company.
The government alleges that f. H.
Gary and Henry c. Frick. directors in
the big corporation who went to Presi-
dent Roosevelt to see whether the gov
ernment would object 10 the corporation
taking over the Tennessee Company.
misrepresented to the President the
amount of stock held by Moore and
Schley, the New York firm. which the
corporation sought to participate during
the panic of 1907. The government s
brief declares that the real object of
the steel corporation in purchasing the
Tennessee stock was not to help Moore
and Schley out of financial difficulties,
but to obtain absolute control of the
Tennessee Coal and Iron Company prop
ertr.
Brief Filed by Corporation
The brief filed by the United States
Steel Corporation reviewing the law
which the government applies to the
case and also reviewing the evidence.
declares that what competition existed
among the companies acquired by the
big corporation was greatly limited.
1t is declared that the steel corpora.
tion s proportion Of the country s total
production of finished products in 1901.
when the corporation was formed. was
only SOL per cent; that it has since
been reduced to 45.7 per cent, of the
country S production for all the markets
of the world and to 4O.9 per cent. of
the total production for the domestic
market.
The steel corporation 8 supply OF ore
in the Lake Superior district eonsti-
tuted only 43 per cent. of the total
amount of ore in the ranges of that dis.
trict known in 1911. the brief states:
that the corporations present supply
there constitutes only Sc per cent,
and that of the total ores available for
American iron and steel manufacturers
the ores of Lake Superior district cols
stitute a small fraction.
Deny Suppressing Competition
In denying that the steel corporation
suppressed competition, the brief states
that the organization of the company
was but natural and normal develop
ment from existing trade and manufac.
turing conditions.
The brief calls attention to the cor
poration g successful efforts in building
up large foreign trade for American
iron and steel products, and states that
the records do net show single in
stance of freight rebates having been
asked or given by the steel corporation
or its subsidiaries since the organiza.
ton Of the big concern.
With respect to its employees, the
brief says that the corporation has re-
duced wages only once during the whole
period of its existence; that this. was
occasioned by severe business depres-
sion in 1904, and that since its forma-
tion the wages of the corporation s en-
ployes have been increased ON the aver
age Of 2S.5 per cent.
Price Of Products Decreased
The price of its products, the brief
continues. is shown to have decreased
on an average about IS ton since it
was formed. II was also shown that the