Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-10-21
Jacob M, Dickinson Presents
Case of Department of Jus
tice Against Greatest Cor
poration Ever Organized,
QUAINT LETTERS OF
CARNEGIE IN EVIDENCE
Laird Of Skibo Castle Advises
His Company That 1t Would
Be Wicked 10 Make More.
Money,

INV sosFiNa JousHAl srecIsL ltsetn wrpsl
Philadelphia. Oct 20.-The first
formal step in the suit Of the federal
government to break up the United
states steel corporation was taken to-
day before four judges sitting for the
federal district of New Jersey.
Jacob NJ Dickinson, former secre-
tary of war. who has boen in charge
of the governments side of the case
since IT was instituted in October.
1871. took up the entire day in arr
guing for the separating into inde-
pendent units of all the subsidiaries
of the billion dollar corporation on
the ground that their combination
into one gigantic concern constituted
a violation of the antitrust laws.
Counsel for the government told the
court that the corporation, in magn-
tude and strength is the greatest COM
bination of capital ever brought to-
sether under one control
Dickinson's Argument.
Mr.. Dickinson began his argument
by going back more than a score of
years into the history of American in
dustrles. He told of the sharp COM
petition that then existed in the iron.
steel, tin plate and kindred industries:
of how pools were formed in the steel
rail field and how agreements were
made among manufacturers of iron
steel to keep up prices; how these
pools dried up and agreements were
broken, how captains Of industry
schemed To put one another out Of
business: how one steel concern would
absorb another and gradually led up
10 the formation Of the gigantic cor
poration now under fire
Much Watcred Stock.
MIR Dickinson told how the five
great industrial and financial inter-
ests came together and formed the
steel corporation in 1901. The five
great interests he named were headed
by the late j. =. Morgan, Andrew
Carnegie W. II. and j. III. Moore,
John w. Gates and John D. Rockefel-
Ter. He went into intricate detail to
show how the steel corporations cap
ltal of more s1,4O0. 900, 600 was made /
up and he charged that more than
$500, 000.0 Of this Is water.
In Restraint of Trade.
Continuing mis- story, Mr.. Dickinson Z
told how the steel corporation and It's +
kept up prices. and he
that the men at the head Of :
the big combination. in every way pos
sible restrained trade and crushed out .
The famous Gary din .
ners were touched upon at great /.
length. Mr. Gary said that at these.
linners about 30 per cent of the iron
and steel manufacturers of the United a
states would come together and that Il
/ general understanding would be 4
cached TO maintain prices Those I;
attending these dinners included no L
aid. not only representatives of the
iteel corporation and It's constituent i
concerns, but also representatives OF
teel industries outside the alleged I
rust. 4
Tennessee COaI and Iron.
The purchase by the Steel corpora 5
ion of the Tennessee Coal and Iron !
nd Railroad company, during the =
money panic of 9O7 in which Prcs- $
lent Roosevelt figured, was also c
ouched upon by Mr. Dickerson. He
aid that the steel corporation did not I
the Tennessee stock from
he New York brokers, who were said
0 be in financial trouble, through "
NY patriotic motives to prevent the "
anc from spreading, but to get con- :
rol of the company. Mr. Dickinson II
lade no reference to former President !
roosevelt, but in the brief filed By :
he government il was set out that the Y
of the steel corpora =
IN who went to Washington to con- :
ult with Mr. Roosevelt on the pro-
riety Of purchasing the Tennessee :.
took from the New York brokers, -
ad deceived the president as to the
mount Of stock held by the New York
rm.
In the course Of his argument Mr.. H.
dickinson read letters and minutes Of
orporaton meetings. One letter that +,
lused a smile to 80 around and les =,
sned the solemnity of the court
Dom was one written by Andrew Car ~
egie at Skibo Castle, Scotland, in
500. II appears that Mr. Carnegie's NJ
lmpany. with the Illinois steel and a.,
Iher concerns, were in a steel rail h.,
Dol Mr. Carnegie wrote a letter to =,
Is company, which appeared on the IN.
inutcs, stating that the Illinois COM at
any WAS 10000 tons ahead Of its
roportion Of the steel rail business
nd that it was bad policy to allow the :,
lrnegie eompany's proportion Of or
srs below that OF others. ce
"If you can fiji next year at pres Ias
1t prices, you can have at least forts IN
illions profit-but ii may be fifty. lw
, want more than that seems er
icked' 8 lei