Los Angeles herald., 1909-02-28
STEEL TRUST TO
CONTROL MARKET
CUT IN PRICES MADE TO GET
RID OF COMPETITORS
Open Market Proclamation Declared
by New Yorker to Be a Def
Backed by Federal
Sanction

NEW YORK, Feb. 27.-E. H. Gary,
chairman of the board of directors
and Of the finance committee Of
the so-called steel trust, whose re-
cent gigantic absorption of the Tennes-
see Coal and Iron company was sane
toned by President Roosevelt and
which has resulted in the chief execu-
tive being severely criticised by party
leaders both in and out of congress, has
issued a trust def to all intents ard
purposes to American manufacturers
and competitors.
Such is the statement freely made in
New York by men who are prominent
in the Industrial world.
Judge Gary's proclamation for an
open market" which was taken by
many to believe he intended to cut
prices for the benefit of American con-
sumers and manufacturers to facilitate
their competition with foreign interests,
now is declared to have meant simply
that the steel trust would cut prices
only where necessary to get the busi-
ness Of competitors.
In pursuance Of this policy, it is
claimed, the steel trust already has cut
prices below those of several minor
competitors in New York and PittSburg
While the trust has announced that
it will sell at such modified prices
as the eXigencies warrant" it is
declared the corporation plans to make
unprecedented reductions, similar in
purpose to those made in the early days
of the Standard Oil company, by which
it cleared the field practically of all i'm
portant competition.
Will Acquire Vast Power
If this policy is as successful as prom
inent iron consumers say it will be,
Judge Gary's United States steel cor
V,o1 Hon
come the most powerful combine Of it's
kind in the world.
A prominent captain of industry, just
returned to New York from Washing
ton, D. c., where he has been working
in the interests Of certain antitrust
legislation, declared today the senate s
judiciary committee is far from done
with its investigation Of the Tennessee
Iron and Coal merger.
Men like Senator Tillman." he said.
''who have the backing of many other
powerful law makers, such as Foraker,
Bailey, Cook of Colorado and John
Sharp Williams, are not to let the
president, who has so bitterly antag-
onized them, escape with a mere 'un-
favorable minority" report, or a mild
majority criticism from these inquisi-
tors. They are, I believe, delving deeply
into the cause of the presidents sane
tion of this gigantic merger, and. will
cause a great deal of unpleasantness
to say the least, before they are
through with it.
such men as George W. Perkins and
Oakleigh Thorne could, I believe. if
forced under oath. throw a great deal
of light on the Tennessee merger, which
seems to me but the finishing barricade
of a trusts intrenchment to devour its
competitors.
1T already was a monster trust, and
as if to brazenly f1aunt its augmented
power and federal shield in the face Of
industry has issued a def, asserting in
bold language that it will undersell any
who dare to enter the field against it.
Views Not Shared by All
While the views of this authority are
not shared by all industrial interests,
they reflect in a great measure the
views of many manufacturers.
The George w. Perkins referred to is
Of the firm Of J. P. Morgan & Co. He
was summoned to appear before the
United States senate committee on the
judiciary to testify concerning transac-
tionS which led to the absorption of the
Tennessee Coal and Iron company ny
the steel trust.
E. H. Gary, Charles M. Schwab and
Henry G. Frick also gave evidence
Messrs. Frick and Gary were mentioned
by President Roosevelt as being the
men who asked him to countenance the
merger when the panic in 1907 was at
its height.
Oakleigh Thorne, president of the
Trust Company of America, was also
summoned before the senate judiciary
committee in Washington to tell his
side of the transaction which led to the
absorption. Mr.. Thorne's banking con-
Germs held securities of the Tennessee
company at the time of the panic Of
1907, and it is understood he told the
committee there was no necessity of
the merger After he testified E. H
Gary, H. c. Frick and Charles M.
Schwab were subpoenaed.