Omaha daily bee., 1914-10-27
SHOWING UP STEEL COMBINE
Assistant Attorney General Cotton
Argues Against Combine.
Always IN THE PRICE LEAD
Giant Corporations Accused OF Get
ting independent Manufacturers
20 Agree 60 Make HiEh
Quotations.

= argument designed to show why the
knitted states steel corporation should he
disintegratcd on tho ground that u Is
an unlawful trust. as oharged by the
government was made In the United
states district court here today. Henry
z. Cotton. special assistant TO the ut
torney general in the governments dis
solution suit against tho big steel con-
esrn and its subsidiaries. was the first
speaker. II is expected arguments will
not como to an end until late tomorrow.
Mr. Cotton reverted TO the alleged
maintenance OF uniform prices Of steel
products for long periods after the forma-
ton Of the steel corporation. Tho gov
eminent charges that the uniform prices
maintained by the steel corporation and
independents was one Of the results OF
the Gary dinners in New York which
were attended by a majority Of the iron
and steel manufacturers OF the United
States. Mr.. Cotton argued that tho wit
nesses the government had called and the
documents II had presented in evidence
clearly proven that the steel corpora ton
took the lead in having the independents
90 along with e in keeping up prices. In
answer TO the argument Of the defence
that prices have not been uniform, cs-
pc ,ially In the last few years. Mr.. Col
ton replied that the government does
not contend that prices have been con-
sistently maintained since the govern
ment filed It's suit three years ago and
congress. through the Stanley committee
began its investigation into the steel
corporations operations.
In judging the case. Mr.. Cotton told
the court, II should not consider the
prices brought about by governmental
action I'm comparison with the alleged
excessive prices that existed before the
Department Of Justice and congress
opened their attacks on the corporation.
status of the Leases.
Council for the government announced
to the United States district court today
that it's action against the Great North
ern railway ore interests, 20 far as they
are involved in the dissolution suit against
the United States steel corporation
amounts TO only question OF costs IN the
present suit.
Henry +. Cotton, special assistant TO
the attorney general, in arguing on the
ore resources OF the steel corporation to-
day. told the court that the lease OF ore
lands by eighteen companies owned by the
Great Northern interests to the Steel
corporation has been superseded by an
other agreement which virtually cancelled
the original lease.
The court wanted 20 know how Il could
cancel lease that was no longer IN
operation Mr.. Cotton replied that the
question was now merely one OF the pro-
portion OF the costs OF the suit 20 be as
sessed against the Great Northern.
The government In it's original petition
charged that the lease OF immense ore
properties by the Great Northern interests
to the Steel corporation gave the stee
concern monopolstic power IN preventing
competitors from obtaining supplies and
1he court was asked 20 cancel the lease
About the time the suit was begun tn,
lease was cancelled TO take effect II
January. 1915, and subsequent TO tn,
cancellation another agreement was en-
tered into, which made the original leas,
practically imperative at once
In addition to eighteen ore companies
Louis w. HIN. James n. I'M. Walter ]
Hiil. Edward T. Nichols and ]. II. Grubel
arc named as defendants In the suit a.
trustees Of the eighteen companies
Counsel for the Great Northern will b,
-f~@N A~-NNA - RffONAAiOn W Ahc kONFHu
ments attempt to have the court enter
decree assessing costs against the or
companies on the ground that such deere
aside from any question OF money woul,
be an aspersion OF crime and woul
brand the defendants as violators OF In
law.
Foreign Prices Lower.
While on the subject OF uniform price
as an indication Of noncompetitive con
ditlons in the steel industry, Mr.. CoIto
said the Steel corporation sold product
IN foreign markets at prices great
lower than In the United States. tn
defense. he said. contended that Il wa
only the surplus product that was 80 di
posed OF In foreign countries.
Mr.. Cotton said the fact that the Ste
corporation sold its surplus al a redu,
ton In the foreign markets was an Il
dication that the corporation intend,
TO keep excessive prices at home II Il
corporation had been honest with Il
public! Mr.. Cotton said. Il would ha'
disposed OF It's surplus product In Il
United states at the lower price
Reed speaks for Defense.
David A. Reed OF Pittsburgh OF eou
sci for the Steel corporation. defend,
Andrew carnegie's action in dlsposing