Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1915-06-04
Government L0SES IN
ITS SUIT AGAINST
j. S. STEEL.
CONTINUED from rage one.)

CONTINUED from Page 0ne.l
&c headed BY Representative A. o
stanley, of Kentucky, investigated the
.lleged trust. In preparing the case
or action the department OF justice
lad the benefit OF all these investiga'
ions. ;
the testimony, exhibits, briefs and
written and oral arguments were exi'
.eedingly voluminous. The examiner
n the case sat 1876 days in nine differ
Mt cities and heard 400 witnesses.
he. testimony made up % volumes
containing 1890 printed pages. There
we're more than 1,75O pages OF printed
regiments aside from the voluminous
,nswers filed by the many defendants,
md the oral arguments filled more
han 1900 typewrittea pages. -
The defendants anne and the origl-
ial bill of complaint were the Steel
Corporation, its subsidiaries, and, }.
,. Morgan ~(deceased}, Charles Steele,
George w. Perkins, E. H. Gary, Cha3.
u. Schwab, Andrew Carnegie, Henry
:. Erich, James Gayley, William n.
Ioore, J.. H. Moore, Edmund c. Con
ferse, Percival Roberts, Jr., Daneld G.
Reid, Norman B Ream, John d. Rock
,feller, John D. Rockefeller, Jr., p. A.
8. Widener and William P. Palmer,
)ast or present directors Of the Steele
Corporation, together with certain
companies, known as the James J.
Hill interests, and Louis w. Hill,
lanes N. Hill, Halter j. Hill, Edward
r. Nichols, J II. -Gruber who were
Used as trustees of the Hill companies.
The General Charge.
In brief the general charge against
he defendants was that some OF the
companies in themselves, were combi-
nations in restraint Of trade and that
he creation of the Steel Corporation,
which took in the steel and certain
)ther companies named in the suit,
was IAN attempt to monopolize and a
monopolization" in violation o. the
Sherman antitrust law.
The Hill ore companies were in.
yolved in the suit by reason of the fact
hat the Steel Corporation leased the
IRE deposits held by the ore compan.
les, the government alleging that this
ease gave the corporation a monopoly
Of the ore supply Of the United States
This lease was cancelled after the suit
was filed. -"
The governments complaint stated
hat the Federal Steel Company, Car.
legie Company of New Jersey, Ameri-
IAN Steel & Wire. Company Of New
Jersey. National Tube Company, Ma
ional Steel Company, American Tin
Plate Company, American Steel Hoop
Company, and American Steel Com
oany were each a combination Of COM
2anies or concerns in restraint of
.rade; that competition was largely
eliminated in their respective lines;
hat at the time the United States
Steel Corporation was formed the Car
,egie, Federal, and National were In
.ctive competition with each other,
hat several OF. the companies were
preparing to still further increase
heir capacity to compete by establish
ne themselves along new lines OF
Manufacture and that for these rea-
ems and for the general purpose OF
appressing competition and control
.ag trade and commerce the United
;.a:es Steel Corporation was formed
~ the directors named in the suit, all
f whom except the R.~ockefellers had
,een y~ariously connected with enc OF
more Of the companies.
The government further stated that
he Steel Corporations capitalization
aggregated s1,402, S4C,S17; that this
capitalization was not less than $780,
900 900 in excess Of the value of the
properties taken over; that its earn.
ings were not commensurate with its
actual capital, nor were they entirely
the legitimate fruits Of the earning
apacity of the properties acquired,
controlled, but were large
ly the result of power exerted over
trade by such a vast combination.
1t was further charged by the gov
eminent that many millions of dollars
were issued for mere promotion anG
underwriting, the petition stating tina.
Morgan & Co. and the syndicate ii
represented receiving 81 100000 in
cash and their expenses, services, anG
risks, and $l29,99S,76S stock of the
corporation.
The Steel corporation acquired
works, the petition stated, with an an.
nual capacity ranging from about go
to 80 per cent Of the country's pro
duction, with the exception of pig
iron, spiegel and ferro, which was
1872 per cent.
Suppress Competition.
The petition also charged that sub
sequent to the formation of the cor.
poration numerous companies were
absorbed to. suppress competition, in.
Guiding the Tennessee Coal, Iron and
Railroad company. which was acquir.
ed during the money panic Of 1907
BY the acquisition from the Rookie
Of the Lake Superior Consoli-
dated Iron Mines and allied trans.
p~ortation companies for more thar
SIS, 100000; the leasing Of the Hill ore
deposits and the absorption of the
Tennessee company with its large
holdings, the government charged.
the steel corporation achieved a com
handing position ove its competitors
In the matter of ore ownership and
transportation, and that through the
acquisition of the H. C.. Frick Coke
company it cont oiled large areas OF
the best coking coal lands in western
Pennsylvania.
The petition further said: 81