Evening star., 1911-06-01
Has No knowledge of Plan to
Control Worlds Steel Trade.
BEFORE HOUSE committee
Head Of Big Corporation a Witness
In Trust Inquiry.
TELLS OF THE SUBSIDIARIES
Explains Relations Sustained Toward
Parent Oompany-Ddsposition
Of Earnings.

Ebert II. Gary. chairman Of the boart
Of directors Of the United States Stee
Corporation, today fatty denied any
knowledge Of the proposed formation OF
| . combination to control the steel trade
Of the world. Mr.. Gary appeared before
the House committee investigating the
steel trust" and declared that he had
come to Washington to tell frankly al
that he knew of the big corporation.
The disclaimer as to . worldwide COM
bination was called out by q statement
by Chairman Stanley that Mr.. Gary was
accredited with being the directing genius
Of such q trust Mr.. Stanley init
mated that these reports had had much
to do with the inquiry started by the
House Of Representatives.
The examination Of Mr.. Gary brough,
out the fact that the Department of Com.
merce and Labor and its bureau of cor
porations are not cooperating with the
Stanley committee. Mr.. Stanley asked
the witness IL he knew whether q repor,
Of the bureau Of corporations on its in
vestigation Of the steel corporation had
ever been submitted to President Taft
or former President Roosevelt. Mr. Gary
said. he did not.
The committee Of inquiry had its full
membership present today, Martin w.
Littleton OF New York, who was absent
when John w. Gates testified last week.
having returned to participate in the
hearing.
When Chairman Stanley called the com
mittee to order there were also present II
response to onicial summons, Mr.. Gary
Norman B. Ream. Percival Roberts,
James Daley and w. B. Dickson Of the
directorate OF the Steel Cooperation.
Whether ali would bs examined today
Chairman Stanley would not say Mr..
Gary and his business associates arrived
In Washington early prepared to remain
until the COMMITTEES could finish its
business with them.
Control by Steel Cooperation.
There isn't any doubt" Mr.. Gary told
the COMMITTEES today, that the United
States Steel Corporation. as the owner
Of most Of the stocks Of the subsidiary
companies, ultimately controls those SUBJ
Gdiary companies, including their man.
aSsment and conduct
Asked IL the Carnegie Steel Company
now competes with other subsidiary COM
panies in the steel corporation. Mr.. Gary
said:
Il should say 1t does. putting my in
depreciation on the word. / came to be
frank and to give you the exact facts
that you may put your own construction
on them.
The subsidiary companies have their
own directors and officers and have the
steel corporation owns the securities.
II the conduct Of q Subsidiary company
was antagonistic, In any way 1t would
only be q question Of time when the
administration of that subsidiary COM
pany would be changed"
You mean the parent company would
control the policies Of any subsidiary
company
TT might not for the moment or the
month. but when the time to elect ON
GERS arrived 1t would"
TT would exercise the recall, as 1t
were?" asked Representative Brantley
Of Georgia
Yes. you might put 1t that way"
Mr.. Gary answered.
Distribution Of Profits.
Are the profits Of one subsidiary con-
Germ measured as the profits OF afl?''
Chairman Stanley asked. THAT is. does
the parent company distribute the divi-
dends Of all?''
The earnings Of the subsidiary compa-
nies." Mr. Gary answered, whenever
dividends are declared. go into the treas
ury Of the United states Steel Corpora
ton That corporation, being the owner
OF the dividends, Of course distributes
them as 1t sees fit. The subsidiary COM
panies have no interest In the dividends
after they are declared"
''who chooses the officers OF the sub
sidiary companies?"
"Of course, their boards Of directors
choose them. but nevertheless a sugges-
ton from the parent company, as you