New-York tribune., 1909-04-20
STEEL OUTLOOK BRIGHT
JUDGE GARY HOPEFUL.
Tells Stockholders Corporation Is
Vel Satisfied

The stockholders Of the United States Stee4 CoI
poration at their annual meeting yesterday re-
elected the ,etir1n2 directors, listened 10 ehCouA
aging remarks on the condition OF the Industry pg
vI,,dqe Gary chairman Of the board. who pre-
sided sn5 voted down q resolution by J. Aspln"aI
Hodge the holder Of hundred shares OF the
1re.erred stock. condenping the purchase Of the
Tennessee Coal Iron & Railroad Company in oc'o-
ber 1877
1udro Gary in answer 10 questions from stock
holders denied published statements that the cor
oTatfo7 was Planning TO issue bonds. and also that
it vas to establish manufacturing plants IN Chlha
In discussing the trade outlook he said
In general way business IS gradually but but
ran on into the fall bat in December our competlo
tors began TO cut prices ana get our uaue' itv
davs but then decided change the price ponGy
loved resI,ltd ir business being brought almost to
standstill- consumers held of III me eNpecIa |
Of getting still lower quotations Nlthln at3out
sixty says. however when prices began TO get close
10 the bottom. there was more ouylng, ana we a
row doing the largest volume Of business since
IDeczrrhe~. We are well satisfied with the condl-
tons and regard prospects bright
While some Of the other steel companies might
he selling their product al or perhaps under the
cost OF production. Judge Gary added, the United
States Steel Corporation had not pursued that pol
ioy and cid not intend TO adopt il Its action IN
maintaining prices during the panic period he sala'
had prevented many failures, especially among JOB
bers who bought their stocks at higher figures,
lie continued
During the panic the United States steel S9r- Cor
poration had s750Jo0lo cash in banks. OF Whch go 80
than s20e0 600 at the TO buy some securities
More would have been purchases, and MONEY Z ooGo o
have been made by l.. hut the corporation re
Trained from withdrawing additional amounts from
the hanks lest such procedure should make the sl
uation more acute
The purchase Of the Tennessee Coal and Iron
Company Judge Gary said, had been under con-
si5erstion before the panic. when the properly
could have been bought ten points lower than 'he
-Ea lat l0D
dropped because il was found that the stock was
50 tied UP that control could not be delivered He
added
We regard the purchase Of this property @ as wise,
rion viii make big money out Of II eventually i
also confident that the Transaction was m an an
Of conduct and not Of percentage Of production
and The public IN the long run Viii decide sCch
problems
NJ Hodges resolution lisapproved Of and pro
rested against the action ot fhe directors and of1-
GERS in obtaining control Of the Tennessee Coal
and iron Company. ''and in thereby rendering the
corporation liable to forfeiture Qf its charter and
tae penalties provided for in the state and federal
statutes: requested the directors and officers -
take legal steps rescnd their action and further
requested them Ito hereafter wholly desist from al
erdeavor TO control the iron and steel market or
80 secure the control of existing corporations which
are connecting with IL until the federal and state
laws shall be 50 modified 10 make such action
legal, and then only when II shall appear TO the
directors. in the exercise oT their dlscretoI TO ne
legal advisable and Tor the ultimate good and gain
Of the COMPANY"
Mr.. Hodge obtained an injunction IN 1902 in the
New JeTs-y Court Of Chancery. restraining the
steel corporation from proceeding with its bond
conversion plan. Th- vice-chancellor's decision
was reversed ny the Court Of Errors and Appeals.
The largest sJockholJer Of record. as shown by
the transfer books which were open lot the IN
specticn Of stockholders yesterday. Is the Stock
EXchanFs nTn of Slssrson Hamnlil & Co, which
held on Narc1 i. when The hooks closed, io2,-5o
shares Of common stock and 23G3 shares Of pre-
ferred- The holdings OF J P Morgan & Co. for
themselves and trustees, were about 1900
Shares.
Judge Gary's comments or the steel outlook. il
pointed ogt in Wall Street yesterday, We're in
sharp contrast with those OF Charles NJ Schwab
less than 4 fortnight III Schwab. answering
stoc}1hGder a. the annual meeting OF the Bethle
hem Steel Corporation. who had asked whether OF
not Ehe steel Industry IN poor : state as in
1890, said
1T is very much worse. I have never known the
business 10 be II such q diScOuragIng condition as
i is today As Mr Carnegie has remarked Steel
Il either prince or ( pauper, and We are HOW The
latter