The Birmingham age-herald., 1911-06-02
Chairman Gary Frankly Off, fers 'to Stand or Fall
 on the RecOrd'
SAYS T. c. I. WAS
 VERY DEPENDENT
But Later Asks to Have Statement Expunged From Records-Denies
 Corporation Is Planning to Control Prices


 States Steel corporation and to "stand or fall on the record" denying that he is planning to form trust to contro steel products and prices of the entire world, and frankly admitting that the Steel corporation has absolute dominion over subsidiary companies. Ebert H. Gary appeared today as the second wit ness in the inquiry being conducted by the ''steel trust' Investigating commit tee of the House.
 MT. Gary's examination will be con- tinued tomorrow, when the committee will seek to learn from him further facts relating to the taking over by the Steel corporation of the Tennessee Coal, Iron and Railroad company. Today Mir Gary surprised the committee with the state- ment that the Tennessee company, before its absorption. while nominally 'independ- ent of all other companies, was very de- pendent, so far as getting livelihood was concerned remark which he quickly asked to have expunged from the record and which he said he had mo business to make''
 This remark, however, served to fore cast the probability that MT. Gary to- morrow might make statements not in accord with the testimony given by John w. Gates as to the highly prosperous con- dition of the Tennessee Coal, Iron and Railroad company at the time of the forced sale to the Steel corporation. MT. Gary told the committee that the Ten nessee Coal, Iron and Railroad company still owes the Steel corporation s1o,1s7. zoo for money advanced.
 The examination brought out the fact that the department of commerce and labor and it's bureau of corporations were not cooperating with the Stanley com- mittee.
 Other Officials Present
 When Chairman Stanley called the committee to order there were also pres- ent in response to officials summons, Nor man B. Ream, Percival Roberts, James Daley and w. B. Dickson of the direc- torate of the Steel corporation. Whether all would be examined today Chairman Stanley would not say MT Gary and his basiness associates arrived in Wash- inston early. prepared to remain until the committee could conclude its business with them.
 ifcie IS Hol dily uoubt, MI. GdTy told the committee today, that the United States Steel corporation as the owner of most of the stocks of the sub sidiary companies ultimately controls those subsidiary companies, including their management and conduct"
 The subsidiary companies have their own directors and officers and have the right to act independently, but as the Steel corporation owns the securities, if the conduct of a subsidiary company was antagonistic in any way, 1t would only be question of time when the ad : ministration of that subsidiary company would be changed"
 The earnings of the subsidiary com panies,' MT. Gary continued, "whenever dividends are declared. go into the treasury of the United States Steel cor poration. That corporation being the owner of the dividends on the other hand distributes them as 1t sees fit The subsidiary companies have no in- terest in the dividends after they are declared.
 "The boards of directors of the com panies choose their officers, but never theless a suggestion from the parent company, as you call it, would be recog- nized."
 Mir. Gary declared he would furnish the committee all the facts and figures the committee wanted concerning the affairs of the United States Steel cor poration and it's subsidiary companies. We stand or fall on our own rec ord" he declared.
 The bureau of corporations must have house full of facts above us,' . said MT. Gary Tt has cost the Steel corporation hundreds of thousands of dollars to comply with the requests of the bureau of information and sta tistics
 About Price Agreements
 Mir. Stanley asked to the nature of the American Iron and Steel institute. MT. Gary explained that it was an or ganization of iron and steel men, who met to discuss matters in which they were interested.
 "I have heard" said MT Stanley. from time to time that the ultimate purpose of the American Iron and Steel institute was to reach an amicable agreement among steel men in this and foreign countries. so that there might be a necessary steadying of prices in the rest of the world, similar to the steadying of steel prices in this coun- try
 One of the moving causes why in troduced the resolution providing for this inquiry was the dread that within 90 days this institute or some similar
 
 ment. have heard that such an agreement was regarded as necessary because the federal government was active to prevent such agreements in this country and that the federal con gress was liable to alter the tariff schedules, both of which could only he met by an international organiza- tion
 ''The statement of the chairman said Mr. Gary. lis immensely frank and the question will be met in the same spirit I will give you all tho facts. in connection with that matter and only wish you had come to my 4 office before."s
 Mir Gary said the Carnegie Steel c5mpany was competing company be- < fore the organization of the Steel cor porntton. He added the Carnegie cor and s160,0 900 of bonds of the United States Steel corporation.
 MT Gary was asked particularly con- cerning the Federal Steel company
 Was not that company holding concern much the same as the United States Steel corporation afterward be- ca,ne?" he was asked.
 .sYos, 1t was" Mir Gary replied with smile. IT should like to say that the United States Steel corporation was fashioned after the Federal company v The corporations are very much alike iu tbeir organization.
 
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