Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-06-14
|DR. POWER IS DEAD SECRETS STILL SAFE
ono Pastor of Vermont Ave- James Gayey Throws Little
nue. Christian Church. Light on Steel Business.
|GARFIEl DIS CL OsE FRIEND AGAIN BEFORE COMMITTEE
Chaplain House iestmony on Contrary Seems
O Representatives. Protect Ralmakng Methods.
DID GREAT WORK HERE NO AGREEMENT OF PRICE
Although
Until Power Was Understanding With
in of
James Gay|ey Throws Little
Light on Steel Business.
AGAIN BEFORE COMMITTEE
Testimony, on Contrary. Seems to
Protect Railmaking Methods.
NO AGREEMENT OF PRICE
Although Witness Admits There
Was an Understanding With
the Railroads.

ASIDE from furnishing opportunity 10
the witness TO throw few more balos
around the steel makers and their meth
ods this mornings session OF the Stan
ley committee investigating the steel
business did not produce a great deal In
the way of results
James Gayley was again on the stand
at the morning session and was oues-
toned first by Judge Bartlett OF the
committee.
In 1899 the average price OF steel rails
was S2s.12 a ton." he said.
What was the agreement nrice7"
asked Judge Bartlett
i don't understand that there was an
agreement price replied Mr. Gayley
to $50
Then. after the formation Of the
United States Steel Corporation in 1901.
II was s2s and has uniformly remained
Yes" replied Mr.. Gayley. "as 7 re-
call 1t, SIS has been practically consid-
cred a fair price for rails" The witness
said he understood rails were sold for
export at less than SOS.
tie said the export business was So
lictted by the foreign agents of the Steel
PRODUCTS Company and not d. city by
the United States Steel Corporation Al
THIS point the witness explained to the
committee some of the details of rail
making and the relative utility of various
parts OF steel ingot.
Price Fixed by Understanding.
Recurring TO the prices obtaining in
former years. the witness said the price
was fixed by a mutual understanding be-
tween the raimakers and the railroads
as to what should be a fair price for a
good rail He said the great steel war;
of 1897 reduced prices
Did that steel war accelerate the for
nation Of the United States Steel Cor
poration?'
II think not. 1t may have tended IN tho
formation of the Federal Steel Company.
Ana that company was absorbed by
the tnited States Steel Company"
DO you know whether there is an
agreement among steel makers. interns-
tory?'' "
Il have never heard of any"
Is there any such agreement in this
II know of none" a.
Did you believe, with NIr Schwab. thai
rails could be made in 1899 for sia a
ton
Il never did believe it, and once asked
Air. Schwab how he believed il could be
done. And Mr.. Schwab just smiled
Price Would Be Destructive.
Mr.. Gayley went on to say that such
price could, under disastrous conditions,
be realized only by methods destructive in
every degree.
And it could not be done now at ALL"
he added; lit would be absolutely inn
possible"
He said the mill cost of a ton of rails
at this time is Sd. 23
Mr.. Gayley said it is the aim OF man
ufacturers of steel today to follow the
policy of the Carnegie company, which
was to unite the fortunes, talents and
industry of individuals TO manufacture
the best steel at the widest margin of
profit consistent with the employment OF
most progressive methods.
Chairman Stanley propounded a series
of questions celebrating this statement
whereupon Judge Lindabury. counsel for
tire steel company, joculary expressed
the opinion that the questions were
little too oratorical for consideration
DO you believe the present equilih-
rum in steel prices will maintain itself;
that, like Mahomet's coffin, ii will remain
hanging?"
Il don't know of anything that can
maintain itself without effort" replied
the witness.
Sparring With Counsel.
CHAIRMAN Stanley then questioned the
witness as to how the equilibrium can
be maintained, which led TO some spar
ring with the counsel
Since the formation of the steel cor
poration." said Mr.. Gayley. there has
been better understanding and more
friendly intercourse among steel makers
Now, everything is above board There
is no scheming or deceving by the steel
makers
inis of h,tc{
walls, and ii is very easy for one steel
maker to approximate the cost of rail
making by his competitors. Ores come
from one general source and fuel from
well known sources, and this free dis
cussion of conditions gives every one a
better idea of cost"
At noon the committee took recess
until o'clock.
Mr.. Kellogg Asks to Testify.
When Frank b kellogg heard ycster-
day that the report was current that he
was evading the Stanley committee be-
cause he might be questioned as to his
relations with corporations, he went inn
mediately to the Capitol and hunted up
Chairman Stanley, asking To be put on
the stand at once. So when the COM
mittee resumed at the afternoon session
Mr.. Kellogg testified.
Mr.. Kellogg referred TO a letter he
explained that he and his firm. Davis.
Kellogg < Severance. had for years rep
resented the Duluth and Iron Range rail-
road and the Duluth. Mesaba and North
ern railroad. subsidiary companies since
1901 of the United States Steel Corpora
tion Denying that while acting spe-
cal counsel for the government he had
performed any services for the steel cor
poration Mr.. Kellogg frankly stated that
a fee of $1,000 for services previously
performed had been approved by officials
of the United States Steel Corporation
and paid to him in October, 1907, after
he had undertaken trust prosecution for
the government.
There has been good deal said. Mr..
Kellogg told the committee. about my
connections with the government ana
with the steel corporation. To commence
with | have no apologies TO make. have
exnlained to this committee my services
Win these subsidiary companies to the
steel corporation They were purely To-
cal They did not concern the steel cor
noration as an organization. Just prior
10 1906 / argued some mineral rights
cases in Minnesota, and presented bill
for air 600 This, believe, was approved
by the steel corporation in 1907. Since
1oo7 / have given my time to the govern
ment In the Standard Oil and few other
ses until they were concluded, and !
ha,-e dope little IL any, other business.