House training 9m.o. yorkie

Question
QUESTION: I have a 9 month old yorkie and we have been trying to crate train him since he was about 4months. He still goes to the bathroom inside of his crate. There is nothing in the crate but newspaper and we have to keep the newspaper in there or he will pee or defecate and sometimes lay in it. Sometimes when we come home he has stepped in his number two. It is like he doesn't care. Yesterday he was in his crate all of 10 minutes before he took a #2 and he was out playing for an hour. Please help!!!!

ANSWER: Can you tell me if this is a pet store pup, or did you get it from an Internet puppy site?  And, how large is the crate you are using?

---------- FOLLOW-UP ----------

QUESTION: I got the dog from a pet store, unfortunately. I tried to remove the newspaper and limit his food and water but it doesn't seem to help

Answer
Please never limit a dog's water.  That has nothing to do with the house training problems.  More likely, this dog learned that it was ok to pee and poop in his bedding because pet store dogs are allowed to do so.  Store staff do not take the puppies outdoors to toilet them, as a reputable breeder would be doing.  Please never make the mistake of buying a pet store dog again.  You can already see one of the problems with doing so - there are others.  For some education, and to take the pledge: http://stoppuppymills.org/
Now, on to the current problem.  I suspect that you did not go to puppy class either, as a good instructor would have helped you with this.  (Next dog, please do that.  Of course, it isn't too late for this one.  You can still go to a class for adolescent dogs.)  
Since crate training has not worked, I suggest that you use the tether method.  For that, you need a belt and a leash.  You simply tether the puppy to you, and that enables you to always be there to see when he has to go.  If he starts to eliminate indoors, simply say "uh-uh, outside?" and take him directly out.  When he goes outdoors, you praise and occasionally even give him a great treat (after he finishes - some dogs learn to stop the stream to get the treat LOL).  If you have been scolding him for accidents, he may have learned that it is dangerous to eliminate in front of you, so stop any scolding and be patient when he is outdoors.  The first few times, you may have to wait a LONG time.  Once you are able to reward him several times for the right behavior, he should get the idea.  When you cannot have him tethered to you, you can gate him in a bathroom or laundry area, and leave just one puppy pad (some people like to prep it with some urine or scent spray so the pup will find it and use it).  You can move the pads to the outdoors to give him the idea where you would like him to go, then gradually remove the indoor pads.  Be sure to clean any area that is soiled with a good enzymatic cleaner, such as Petastic, Simple Solution, or Nature's Miracle (I like Petastic best).  If you must work all day, you should consider day care, or a dog walker, so that the dog can relieve himself appropriately outdoors as many times as possible, and not have to rely so much on the pad.
There's a good book on house training, "Way to Go: How to House Train a Dog of Any Age", that might be of interest to you.
Good luck - let me know how you make out.