Show i STEEL CORPORATION ASSAILED AS F Fr TRUST r Dissolution Disso lution is is Demanded Ii in Most n Ever Brought by Depar De- De i De-i par of Justice it i MANY ILLEGAL ACTS ARE ALLEGED r I Morgan Mortan 01 all t tan Rockefeller Rocke Carnegie arner arne ie e Gary ar and an Other Prominent Men a n are Named as s Defendants By Associated Press TRENTON N. N J. J Oct 26 The The governments government's long planned suit to break 1 J. up the so called steel trust was begun here today in thc the United plates States circuit court It is the most sweeping trust anti-trust action ever brought by the department of justice The government asks not only the dissolution m of the United States Steel corporation but for the dissolution of thirty-six thirty constituent or subsidiary companies which are arc alleged to have combined in violation of the Sherman law to maintain r or attempt pt T TD to maintain Roc D 1 k a monopoly of the steel business J. J Morgan J u u. c- c feller Andrew Carnegie ic Charles M. M Schwab George W. W Perkins E. E H H. rOary GaryJohn John D. D Rockefeller jr Henry Henr KG C Frick Charles Steele James Gayley Gay- Gay Gayley ley William lV lliam H. H l Io Moore re J. J H. H Moore y Edmond C. C Converse Convene eJ Percival Perchal Rob- Rob jr r Daniel G. G Reid Norman B. B P. P A A. B. B Widener and ana W William WilliamP P IP P Palmer are named in individually y as defendants The United States Steel corporation t. t Ore foe Carnegie Steel company the Cartile Car- Car tile egic company of ot New Jersey Jerse the Fed I-cu- Itt feral tl Steel company compan the National Steel company the American Steel Wire Ire com company pan ot of o New Jersey ey the National Tube COI company the Shelby Steel Tube company compan the American Tinplate company com corn fP pany an the American 1 e rican Sheet Tinplate company the American Sheet Steel company the American Steel Hoop company the American Bridge company coman company com com- pany an the Lake Superior Consolidated lion Iron Mines all of oC which were organized organized organ organ- under the New Jersey Terse Jaws and j the H H. HF C c. c I Frick Coke company compan tho the Coal rte Iron and Railroad company Western and and th Vestern lIn 1 lin r company are named as corporate deCe defendants f f Louts Louis w. w Hill HilI James Tames N. N Hill Hm Walter Falter IJ J J. J Hill E. E T T. Nichols 1 chols and J. J H H. Gruber I Iare are are named as trustees in connection with ith the ore companies Ore Lease Declared Illegal I The Tile Steel corporations corporation's lease of oC the II Great Northern railways railway's ore are properties properties proper proper- ties ties which the directors of oC the steel i company today formally decided to I IC C cancel is alleged to be illegal The action of or the directors was tal taken en but buta a a. few hours before the filing Wing of the lire bill The government go that it was advised of the steel corporations corporation's cor- cor intention in this respect but states slates that un under er the terms of ot the lease no cancellation would be effective the tive until Januar January 1 1915 and there 11 Is ht no DO limit upon the amount of or ore that can be bo taken out in the mean mean- time Sensational alle allegations fairly topple over each other In the governments government's repetition petition which Is an equity proceeding J praying for Injunctions to estop cont con- con t t. Continued on Two 0 STEEl CORPORA CORPORATION nON nONI i ri I I r ASSAilED AS TRUST Dissolution Demanded ii in Sweeping Action by Department Department Department Depart Depart- ment of Justice ILLEGAL ACTS ALLEGED Morgan Rockefeller Carnegie Gary and Other Prominent Men Arc Aro Named as Defendants J I- I I l. l d l Prom From rage r- r One Ont tt ot of tho alleged aliened monopoly and out lIu Ia other Cr r FC JoC S RS th thu COUrt may Ir grant nt Th Tim Th steel corporations corporation's acquisition of or the Tennessee Coal Goat R Ii iron company during the panic of of- Is declared literal Illegal I anti and sCathingly criticised The T declares that E E. JI 11 GaT Gary and my C c. C. C Prick misled former President dent Roosevelt wh when the i they told him that thal hut Iut benefit will como come cometo to to tho the steel corporation from the pur- pur f th Hidden From Roosevelt The President It sa says was not made tull fully acquainted with the state of oC affairs In fn New York r relevant levant to the tho transactions ns as PJ they ther existed If It he had tuB fully a advised lse he would h ha have hae vo e Known krown that a n. desire to stop the panic wn was not tho the sole moving cause but that there was also a desire and purpose purpose pur pur- pose pOle to acquire tho control of or a a company company com com- Jan pany that land had recently assumed a n po- po of oC potential competition of oC great significance sl It Is III certain that the corporation a availed d Itself of t the embarrassment t of or k Senior chlo New York Tork brokers s WHO WIIO had hael largo large holdings of oC ce stock Hock at t n a most moat critical period and anti the hammering of It the Tennessee stock and the and the threatening of or a general financial finan finan- cial olal al calamity to acquire tho the control of oC a 11 competitor taking on a ablo aspect I The Tilt corporation thus greatly strengthened Its control of ot the country's coun- coun i i tr try's Iron ore supply Us s tIng t- t 1 Ing position In the tho south a 8 Iron and 1 I steel trade eliminated d a i competitor rind unlawfully tull acquired a power which Is a menace to the tho welfare of or the country should be destroyed Purpose of Gary Dinners The Gary dinners are arc referred to though not by name as meetings which accomplished more than written pools err en- agreements 1 nt n tB It was understood and a agreed said the bill that they the the steel manufacturers manu manu- represented 9 ne at th the thA meetings s were bound to protect one another that to carr carry out this they purpose their honor was Wf s at lit stake and that the gatlon binding upon them was as even en lIc dearer than Info Itself anti and that no one of or them thern should net or tall fall to act except at a distinct and anal clear un understanding that hi his honor was Involved and that r r. r this tills was moro more binding upon him than any n written contract When bidden b by bythe the chief executive of ot the corporation the they camo came at an any time from an any distance dis dis- tance read ready willing and anxious to turn over to him and to his friends all l that at there ther was In their minds and In their hearts concerning their own busl- busl ness nesa ne Interlocking directorates through t 11 which those tholo In power rower In the steel teel corp cor- cor p oration held p Jower of or Influence on the tho directorates of oC other powerful cor cor- are ai referred to as a a method snore more r refined more euphonious but none the tho iN loss less effective than pools Through h Its directors thus distributed ed says Rays tho the governments government's petition the corporation Is In direct touch with all tho the large largo railroad anti and steamship companies of ot the United States tates such euch powerful concerns as the Standard Oil company compan the Pullman company tho the International Harvester company and the he Western Union Telegraph com company pan and with an overwhelming majority In Inmany many nany powerful banks and trust companies com- com of ot the United States I The possibilities of oC the po power er and the he control that mo may thus be exerted over o trade and commerce Is able ablo Tim The power and control that havo have I been wen en exerted by the tho corporation largely largey large large- ly y through h tho the grasp of ot Its tentacles thus thud thrown out upon the tho consumer comp and capital Is I s incompatible p with the healthy health commercial life of or the nation The government reviews In great deall de- de tall tah all the conditions In the lIle steel trade before the consolidation o of 1900 1898 and nd the formation of ot the I Federal Steel company the till Carnegie company of or New Jersey the American Steel Wire company the National Tube company the he National Steel company tho the Amen Ameri American lean Ican can Tinplate company compan the American Steel Hoop loop company the American Sheet Steel company and other corporations corpor- corpor prior t to tho the formation of oC the United States Steel corporation Itself In n 1901 Tennessee a Competitor Describing the tho United States Steel corporations corporation's acquisition of at the Tenessee Tennessee Ten- Ten essee Coal and Iron company the pe- pe relates In 1007 1907 the corporation acquired the control and almost the entire ownership ownership owner- owner ship hip of ot the T Tennessee Coal Coall Iron and Railroad com company pan The properties of oC this ills company were located mainly In Alabama and Tennessee Owing to the character of or Its coal and nd Iron deposits the thA Tennessee company com- com any pany could manufacture pl pig Iron cheaper cheapen cheap- cheap er en r than It could bo be made In any other part art of ot the United States On account of oC f Its vast ast holdings of or coal and Iron properties It vas Vos a strong probable future competitor of ot the corporation Most lost of oC the rails In the United States had md been made marl out of or Bessemer ores On n account of oC accidents attributed to weakness in such rails a n demand arose nrose for or an open hearth rail and for tor such process tho the ores owned b by the Tennesee Tennessee Ten- Ten lessee company compan were available a available In In 1907 a sen sensation atlon was created In Inho inthe ho tho steel rail market marlet b by E. E II 11 Harriman Harrinan Harri- Harri man nan ordering from the Tennessee compan company com com- pan any pany tons of oC open hearth steel rails alls at 1 51 more per ton than the price of oC f Bessemer rails This at once put that hat company compan into the position of oC an actual competitor o of the corporation and nd of oC a possible competitor that could not ot bf lip Ignored of oC great potentiality Tho corporation was WIS not slow Blow to discern the situation James Gayley Galey fl first vice president t of oC the corporation having acquainted himself with the properties of oC the Tennessee company ha had ad already recommended to Mr r. r Frick who vho was then a director of ot the cor- cor that It acquire tho the properties I or of f the Tennessee company compan stock Hammered Grant B B. Schley of oC the firm of Moore Schley of ot New ew York City was one ot of f the s syndicate holding a majority of ot ho tho stock This was waR l known to the cers of the corporation Moore Schley In n October 1907 owed large sums of ot money In New ew York and elsewhere from rom to upon calland call calland and nd time loans which were running to maturity Some Seine of or these loans were partly secured by pledge of oC 1 shares hares of or Tennessee stock the amount In October 1907 a a great panic came nail nd New York was the storm center Those lit in control of oC trio the corporation obtained Intimate knowledge of ot the affairs af- af fairs alrH of oC Moore Schley and of their holdings s of oC Tennessee stock The credIt cred- cred It t of Schley and the character of oC if their stockholdings such as at Tennessee Tennes- Tennes see co stock Republic Iron Steel stock and ind other industrials was discussed on the he street and among bankers banker and the question of at their failure was mooted The Tennessee stock was specially subjected subjected sub- sub to criticism and In Wall all street parlance wa was hammered as a collateral collat collat- eral II If C. C Friel Frick and und E. E II IL Gary Gar representing representing the corporation took up the negotiation with Schley for tor tho the purchase purchase pur pur- chase of or the syndicate stoc stock o of the Tennessee Tennessee Tennessee Ten Ten- company compan offering him first the equivalent of ot 60 0 cents on the dollar and afterwards 75 i 6 cents on the dollar In cash for tor tho the stock which Schley y de declined de- de 1 h Thorne who w was s president of ot the Trust com company pan of oC America a New ew York Institution was one of oC tho the syndicate that purchased the majority of ot the Tennessee e company company- hn having Ins subscribed for Cor l OO shares Da Damaging maging Statement Published In a New York paper panel of oC October r 23 3 appeared a statement headed Aid Ald Trust Company Compan of oC America Among Amon other things s It said that at a meeting the tho nl night ht before beCore of or the chief bankers of or ortho tho the city headed Beaded b by J J. J I 1 P. P Morgan Co It t was formally decided that the tho point then needing buttressing was the thc Trust Company of ot America and that this determination determination determination de de- termination was announced after Mr Perkins meaning George W W. Perkins of ot J. J P. P Morgan an Co had been In conference con con- ference subsequent to said gathering of oC bankers banker A part of ot the article sub- sub hal headed d. d The Official Statement said eald The Tho chile chief soro sore point f Is tho trio Trust Company Company Com Com- pany of or America After expressing confidence In the condition of ot the the company compan and stating that it would be a aided and cash had been guaranteed it was stated that these steps were taken for tot the purpose of or announcing announcing- that the company compan company com com- pan pany would bo be taken care of oC If It an Rn ex examination examination ex- ex Into Its affairs which had been authorized showed conditions to tobe tobo tobo bo be as MS sound as there was every reason to believe helle th them therm m to be This announcement announcement announcement announce announce- ment helped materially to cause a 11 run on the raid trust company compan and aggravated aggra aggra- rated d tho the general uneasy uneas condition anti and made mado tro tl-a position of ot Moore Sch Seh- Schley I Icy ley more desperate It was generally known that Thorne and Schley chloy were members of or the Tennessee ec syndicate Re Regardless s of oC tho the Intent In giving out the tho and statement statement and the facts are nrc not nt sufficiently known to make an any charge In this rC regard tho 3rd-tho the tho fact tact Is that It t contributed contributed contributed con con- directly and strongly tO toward ard bringing ln Moore Schley hley to a 11 point of ot Imminent failure although they w wre ere re amply solvent Their condition had be become become be- be come desperate tl Insisted on Getting Control It t heln being generally regarded b by bankers hankers und and financiers that their fail fall failure failure ure uro might pre a general crisis they J J. J P. P Morgan Con taking the lead exerted themselves b by advances ad of ready money to meet pressing demands de- de demands demands de de- mands and otherwise to prevent pre their suspension Much of ot the effort eUort however however how how- ever er revolved re about the tho proposition for tho corporation to acquire the stock of oC th Tennessee company Nothing loss lollS than tho the control of or tins tile Tennessee company was considered by tho the corll cora cor cor- a ll 1 and ne negotiations proceeded rapidly and steadily to that end nd It belag boIng bo- bo lag Ing represented to that In no other WI way could relief rollet bo be brought broucht to him There w four upon the part of oC th the corporation that when tho the movement became publicly known the government govern ovorn- ment might take steps to prevent Its consummation In view of ot this his li E If H. Gary OBry tho the chairman of oC the executive executive committee of ot the corporation and H. H C C. Frick a n. director went to Washington reaching there |