The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-10-20
DEFENSE Of
THE STEEL TRUST
Presents Array Of Facts and Figures
to Show That il Is Not . Mon
opoIy or Has stifIed
Competition.
IN ANSWER TO SUIT
United states steel corporas'on
IN ANSWER TO SUIT
United States Steel Corporation
Does Not Control tho Business
According to It's Brief
Filed Today.

limited Press Leased Wire Service.1
PHILADELPHIA, Oct. 20.-Present-
ing huge array OF facts to prove
that 1t was not organized to create a
monopoly or stife competition and
that 1t has endeavored to refrain from
doing either Of these things. the Unit
cd States Steel corporation today filed
its brief answering the governments
dissolution SUIT in the federal court
here The brief alleges the American
Steel and Wire Co., National Tube
Co, American Bridge Co, the Amer
lean Tin Plate Co., the American Steel
Hoop Co., and the American Sheet
Steel Co.-corporations that were abb
sorbed in the formation of the steel
corporation-were not in competition
one with another to any appreciate
extent. What competition did exist in
the companies taken over by the steel
corporation, 1t is alleged. was between
the Carnegie Steel company and th.s
Federal Steel Co.
And In this case, the brief further
asserts, the competition was restrict
ed to only q part OF their products.
To prove that the corporation now
is not monopoly as alleged, the brief
states that in 1901 the steel corpora
tons proportion Of the country's total
production of all finished products Of
iron and steel was only SOL per cent.
Since then, the proportion has been
reduced to 45.7 per cent OF the coun-
try's production for all the markets
of the world and to 400 per cent OF
the total production for the domestic
market.
AS to the extent OF control Of bust
ness involved in the ore supply ac-
quired by the corporation, 1t is shown
that the steel corporations ore con-
stituted only 43 per cent Of the total
amount OF ore in the ranges Of the
Lake Superior district which was
known IN 1901 and constitutes at pres
emit only &c per cent OF ore maintain
ed Ia the Lake Superior ranges now
known
The brief at some length goes into
the origin and development OF the
seteel industry to prove that the form
ing OF the steel corporation WIS but
. natural and normal development
from existing trade and manufacture
ing conditions and that 1t In no way
was organized to create monopoly.
At dinner in 1900 the brief re-
cites, Chas. VI. Schwab delivered an
address on the future Of the steel In
ldustry. dwelling on the advantages to
sbe derived from specialization and
large scale production. He asserted
that by such means could a large ex-
port business be created. ]. P. Morg-
an, who was at the dinner, became in
lterested and had Schwab detail his
plan to him
AS result of this 1t Is stated Morg
IAN laid the matter Of ehecting merg-
er between the Federal Steel company
and the Carnegie Steel company be-
fore the Federal directors. After get
ting their approval he financed the
deal The negotiations finally led to
the purchase Of all the smaller COM
ipanies that later became part Of the
steel corporation. These were ac-
,guired, It was stated, in order to Sc
cure the manufacture OF products not
then being made by either the Fed
leral or Carnegie companies.
The brief presents much evidence to
show that the forming OF the corpora
ton resulted in huge savings and
also in the development Of great
foreign trade that otherwise would
not have been created. Evidence Is
also offered to show that the corpora
tion's method In competition were
always fair.