The times., 1899-10-20

The Federal Steel Company was repre-
scented before the Industrial Commission
yesterday. first by ore Of its prominent or
ganizers. Francis ]. stetscn, foiloTine
whom EIbert H. Gary President Of that
company. took the stand. II was brought
out in me testimony that the Federal Steel
Company Is composed Of the Minnesota Iron
COMPANY. the Illinois Steel Company, the
Lorraine Steel Company and the Elgin,
Joliet. and Eastern Railroad Company The
consolidation was effected through the ac-
ton oi J. PIsrpont Morgan in turning over
q majority Of the stock OF each OF these
companies 20 the Federal Steel Company
The company Is capitalized at s20o 000, coo,
the stock being equally divided into pre-
ferred and common The combination was
effected in 1888.
Mr. S1c,son ssid be had had no connection
with The company since its organization
he was asked by Prof. jerks, who con
Quoted the examination for the Commission,
why the company went 10 the State Of New
Jersey FOR its charter. IN answer. Mr. Stst-
s0n gave many reasons. He mentioned as
perhaps The principal one the fact that IN
der the New Jersey law there was no per
eoDal liability on the part OF stockholders
The expense Of Incorporation and State tax
were less than in other States. The laws
OF many OF the States. he said. were eX-
ceedingly inhospiJeble for the development
OF industrial enterprises. Mr. Stetson said
there was q mistaken idea that the laws OF
New Jersey allowed stock TO be issued as
fully paid which was nor paid. There was
no Limitation in that State as to the amount
OF IL5abt edness which a company might
incur, which was a decided advantage over
the regulations of other States.
The witness did not favor publicity in the
affairs OF industrial corporations, but
thought il might be a good thing if applied
10 railroads. insurance companies, and all
corporations Of a public nature The idea OF
q national corporation Law was not ap-
proved CT By the witness such law, hG
thought could not be passed under the
Constitution. being barred by the general
welfare" clause.
Mr. Gary spoke more particularly as 10
the workings OF the company. lie said
there were al present Il Geo employees, al
increase OF 5000 over last year. The
monthly payroll Of the company amounts to
81 3s3. COO. There has been d general ad-
vance this year in wages amounting TO -
per cent His company. he said, had never
taken any part in politics, and had never
tried 10 influence the votes OF their en-
ployes.
M Gary believed that some protection
was needed in the way OF a tariff, but not
enough % create Z monopoly by destroying
composition. The tariff, he said, had moth
ing 10 co with the present high price OF
steel
Nr Gary was not averss 10 a Federal
corporation law II one could be passed.
which ht Coubted. he preferred 10 be ruled
by Federal rather than State courts. Ia
discussing the authority OF the Interstate
Commerce law, he said that, in his opinion.
Il had ro Jurisdiction over tbe affairs OF
any corporation other than that branch Of
its business pertaining 10 interstate ccm-
me-ce. This might be fine distinction
10 draw. and a difficult one 10 determine.
but il Wsz, in his opinion the intent OF
the Law.
The Whisky Trust viii be investigated
today by the Commission, and S. NJ. Rice.
Secretary Of that organization, and Edison
Bradley viii be the Witnesses.