The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1914-10-21
Powerful Influence Is
Used to Give u. S.
Corporation Business
of Various Roads
INTERLOCKING
DIRECTORATES
Pools and Gay Dinner Meetings Re-
sponsible for Artificial Maintenance
of Prices by Giant Steel Combina-
tions, Says Government Counsel
By Associated Press.

Philadelphia, Oct. 21.-Argument on
behalf of the government in its dis
solution suit against the United States
Steel Corporation and its subsidiaries
was continued to-day by Jacob NJ.
Dickinson, in the United States Dis
trict court here, Mr.. Dickinson spoke
for more than FIVE hours yesterday. He
reviewed the history of the steel wire
pool of 1905 and then took up the
matter of interlocking directorates. Mr..
Dickinson said the steel corporation
through its directors was in direct
touch with the large railroads and
steamship companies of the United
States and with the overwhelming
majority in money and power of the
banks and trust companies of the Unit
ed States.
Counsel stated that the record of
the case shows that since its organiza-
tion directors of the corporation have
variously BEEN directors in more than
$40 different companies and corpora
tions exclusive of the steel corporation
and its subsidiaries. In 1911. when the
suit was brought, Mr.. Dickinson con-
tinued, some of the steel directors were
directors in O. railroad companies
operating NEARLY fifty per cent. of the
entire railroad mileage of the country.
Price of Rails Remained Uniform
The interlocking of directors, Mr..
Dickinson added, in respect to leading
TO rail manufacturers is significant in
connection with the fact that the price
of rails has remained uniform since
shortly after the formation of the cor
poration.
Taking up the matter of steel diree-
tors sitting on railroad boards and
using their influence to give the steel
corporation business. he gave alleged
instances through testimony taken in
the present case where such influence
had apparently been used.
1t would be impossible TO prove
fully the quiet but constantly effective
force thus operating all the time. - Mr..
Dickinson said. "Such men do not pro-
claim what they are doing from the
housetop. But it does not require proof
TO show how self-interest will operate
under such conditions, but conclusive
proof as to particular instances is not
lacking
Power to Destroy Competitors
Mr.. Dickinson dwelt upon the al
legged power of the steel corporation
TO destroy competitors. In support of
his contention that it had great power
IN restraining trade, he relied largely
on testimony given by f. H. Gary.
chairman of the steel board, and other
steel corporation men at various gov
ernmental and congressional investiga.
tions.
In summing up counsel for the gov
ernment declared that the steel corpora.
ton ever since its formation has con.
trolled and still controls the majority
OF the steel business of the United
States.
The corporation s vast power has
been directed primarily to the exaction
of non-eompetitive prices from the
general public, he said, rather than
to the destruction of its competitors. 1t
has made its competitors co-conspira.
tors with ii in the artificial maintenance
OF prices of steel products.
Gary Dinner Meetings Significant
As practically all of the so-calle3
competitors of the corporation have
shared in the fruits of its monopolistic
power and have been co-conspirators
with IT in the artificial maintenance of
prices by pools and Gary dinner meet.
ings, It Is not surprising that they gen
orally appear friendly to it."
Opening the argument on behalf of
the United States Steel Corporation.
Richard Y. Lindabury. of Newark. n,
j.. reminded the court that the peti.
ton of the government charged that
the steel corporation and 13 Of its Is
subsidiaries were organized in violation
of the antitrust law ''We do not con.
s'der the legality of the organization
OF these subsidiaries open to INQUIRY
IN this case, he said, "or their stat.
US or practices prior to the organiza-
tlon of the steel corporation directly
in issue.