Omaha daily bee., 1914-10-27

Z his interests TO the steel corporation
when Il was orsanized
Mr. Reed said Mr. Carnegie had no
| thought that the steel corporation in
tended to monopolize the steel business
Mr. Carnogies one thought. he said. wa
( to retire from a long and active bust.
J ness career and devote his time TO phil
anthropy.
Counsel pictured he meeting between
4 Andrew Carnegie and the late J. p. Nor
gan, when the deal was closed Tor the
sale OF tho Carnegie properties. James
/ H. Reed of Pittsburgh was at tho meet
I ing and counsel quoted him in describing
the parting between Mr.. Carnegie ana
Mr. Morgan.
when Mr. Carnegie was leaving Mr.
Morgan" James II. Reed is quoted as
50 ying. nc turned to the banker and
I said: 'Pierpont. am the happiest man
/ In tho world. I have unlosded the bur
den upon your back I am Off to Europe
| to play"
The government in its charge against
the steel corporation referred TO Mr.. Car
negie as a conspirator. Counsel said
that in the light Of what Mr.. Carnegie
has done with hs fortune for tho good
Of mankind. 10 refer to him In terms
/ applied to vretched criminals IN the
dock IL unworthy Of the government
I David A. Reed il a son OF James H.
[ Reed. who is a director in the Steel cor
/ poration.
( Mr.. Reeds argument was largely sta
/ tistical lie combatted the government
/ charge that the steel corporation re-
/ strained competition. lie said tho steel
corporations pig iron production in
/ creased IN ten years 5s7 per cent, while
their competitors increase was q per
1 cent. steel corporation increase In steel
! ingots and castings was a per cent, and
/ competitors Increase 1885 per cent. steel
rails: Corporation decrease. 10 per cent;
I competitors increase. 10 per cent. Struc-
tural shapes: Corporation increase, 81
/ per cent: competitors' increase, i64.t Yer
/ cent. Plates and sheets: Corporation in
crease. 4o.s per cent; oompetitors' in
/ crease, 26.i per cent. Other products
showed that the corporations increase
was not az large as that Of It's compet-
itors.
Monopoly Of Ore Denied.
/ Mr.. Reed took up the charge OF the
government that the steel corporation
had a monopoly in the country's supply
Of ore. The steel corporation denies such
monopoly. counsel argued. -Four per cent
| OF the earth's crust Is composed OF iron
he reminder the court. and smllingly
asked how anyone could monopolize the
ore supply when II Is found everywhere
lie also reminded tho court that the pres
ent tariff law had taken the duty of
iron ore. which gives American manu-
facturers foreign ore practically on ar
equality with the domestic raw material
In 1901, Mr.. Reed said. the steel cor
poration possessed 43 per cent OF thu
known ore reserves OF the Lake Superior
district. sufficient 10 last the corporation
slxty-eight years at the 1901 rate of con
sumption. In January. 1912 the Steel cor
poration had t5.6 per cent OF the ore de
posits Of the Lake Superior region. III
said, enough for the corporations need
for only thirty-eight years at the 1871
rate OF consumption II further discov
cries OF ore are not made In that dis
trict. Mr.. Reed continued. the Steel cor
poration's reserve would be reduced nc
cordlngy.
Mr.. Reed criticised the Department o
|, Justice for submitting as evidence tn
report OF Herbert Knox Smith. as com
missioner of the federal bureau OF cor
poratious, on his investigation OF tn
, Steel corporation, 30 far as the repoE
, related 10 ore supplies. The report. MI
. Reed said. was not sworn to. and the de
Tense was not given an opportunity I
examine Commissioner smith as to Oh
sources OF his information.
Counsel for the defense went over tn
testimony Of witnesses to SHOW that
, was virtually impossible 20 inonopoliT
4 the ore supplies OF the Lake Superio
region because the supply Is much create
3 than the demand OF the American MANI
: facttffers. Texas ore, he added, is bein
a delivered in ships at Philadelphia cheapt
a than Lake Superior ore Is delivered 9
= Pittsburgh.