Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-06-04

printed arguments aside from the
voluminous answers filed by the many
defendants, and the oral arguments
filled more than 1900 typewriter
pages.
The defendants named and the
original bill of complaint were the
Steel Corporation, it's subsidiaries,
and, ]. p Morgan (deceased), Charles
Steele. George w. Perkins, E. H. Gary,
Chas. NJ. Schwab, Andrew Carnegie,
Henry G.. Frick, James Gayley, Will
liam H. Moore, ]. H. Moore, Edmund
c. Converse, Percival Roberts, Jr.,
Daniel C. Reid, Norman E. Ream,
John D. Rockefeller. John d. Rookie
feller, Jr, 2. a. B. Widener and Will
liam P. Palmer past or present direc-
tors of the Steel Corporation, togeth-
err with certain companies, known as
the James J. Hill interests, and Louis
w Hill, James n. Hill, Walter ]. Hill
Edward r. Nichols, J. H. Gruber who
were sued as trustees of the Hill COM
panies.
In brief the general charge against
the defendants was that some of the
companies in themselves, We're COM
binations in restraint of trade and
that the creation of the Steel Cor
poration which took in the steel and
certain other companies named in the
suit, was IAN attempt to monopolize
and a monopolization" in violation Of
the Sherman antitrust law.
The Hill ore companies were in
yolved in the suit by reason of the
fact that the Steel Corporation leased
the ore deposits held by the ore COM
panies, the government alleging that
this lease gave the Corporation a
monopoly of the ore supply of the
United States. This lease was can
celled after the suit was filed.
The governments complaint stated
that the Federal Steel COMPANY.
Carnegie Company of New Jersey,
American Steel & Wire Company of
New Jersey. National Tube Company.
National Steel Company, American
Tin Plate Company. American Steel
Hoop Company, and American Shee.
Steel Company were each a combina-
ton Of companies Or concerns in re-
straint of trade :,af that Q competition
spective lines; that at the time the
United States Steel Corporation was
formed the Carnegie, Federal and
National were in active competition
with each other, that several of the
companies were preparing to still fur
ther increase their capacity to com.
pete by establishing themselves along
new lines of manufacture and that for
these reasons and for the general
purpose of suppressing competition
ana controlling trade and commerce
the United States Steel Corporation
was formed by the directors named in
the suit all of whom except the
Rockefellers had been yariously con-
nected with one or more of the COM
panieS.
The Government further stated tina.
the Steel Corporations capitalization
aggregated s1,402, S46.S17: that this
capitalization was not less than $780,
oo0,000 in excess of the value of the
properties taken over; that its earn
lngs We're not commensurate with its
actual capital. nor were they entirely
the legitimate fruits of the earning
capacity of the properties acquired
separately controlled, but were largely
the result of power exerted over trad
by such vast combination.
1t was further charged by the gov
eminent that many millions of dol
lars were issued for mere promotion
and underwriting, the petition stating
that Morgan & Co. and the syndicate
1t represented receiving $4,000, 600 in
cash and their expenses, services. and
risks, and $129,99s.76s of stock of the
Corporation.
The Steel Corporation ACQUIRED
works. the petition stated with an
annual capacity ranging from about
6o TO 81 per cent. Of the countrv's
production. with the exception Of pig
iron, spiegel and ferro which was AZ .
per cent
The petition also charged that sub
sequent to the formation of the Cor
poratlon numerous companies were
absorbed to suppress competition in
Guiding the Tennessee Coal. Iron and
Railroad Company, which was ar
CURED during the money panic of
1907.
BY the acquisition from the Rookie
1eilers OF the Lake Superior Con-
solidated Iron Mines and allied trans
portation companies for more tina,
S5s,Oo0,000; the leasing of the Hill ore
deposits and the absorption Of +ha
Tennessee company with its large ore
holdings, the government charged. the
steel corporation achieved com
handing position over it's competitors
in the matter of ore ownership and
and that through the
acquisition Of the H. c. Frick Cole
Company it controlled large areas If
the best coaking coal lands in WEST
ern Pennsylvania.
The petition further said:
1T controls over $50 companies
From the time of its ORGANIZATION
down to near the time Of the fling of
the petition. it. by the participation
Of various Of its subsidiaries in unla "
rul pools. agreements, ASSOCIATIONS
meetings. and undertakings, and from
time to time. and over long periods ~
time. helped to control and mainta;n
prices of various steel products arti.
nm late F0p n Aeelrlca nm