The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-10
Member of House Committee
Puts Pointed Question TO
Director of the Great
Corporation.
POWER OF MORGAN
IS TOUCHED UPON
"Gary Dinners" Again Fig
ure in Hearing; Connec-
tion Between Railroads
and Rail Makers.

WASHINGTON, June 9.-The first
| clash between the house committee on
the inquiry into the United States Steel
corporation and counsel for the cor
| poration, r. v Lindbury, occurred
today, when Percival Roberts, Jr.,
director, was under examination.
Mr.. Roberts and former Vice Presi-
dent James Gayley of the corporation
were witnesses, both testifying that
agreements as TO parceling of out.
put were made between steel manufac.
turers before the corporation was
formed,
The committee sought TO show that
through the 'fGary dinners the prices
of steel products were maintained and
competition curtailed as effectively as
they were prior to the corporation IS
formation, by gentlemen S agreements,
made despite the Sherman antitrust
law. Much of the examination of Mr..
Roberts dealt with an academic discus
sion of j. p. Norman S industrial po'
tentialiry, though Morgan's name was
largely avoided, and with the system
of interlocking directorates Of the
corporation and other big industrial
enterprises.
Mr., Beal's Question.
Was it the same spirit of philan-
thropy that guided independent steel
| manufacturers to make agreements be-
| fore the organization of the United
States Steel corporation" Representa-
tive Beal asked Director Roberts. ''as
prompted the steel corporation to save
the nation in 1907 by taking over the
| Tennessee Coal and Iron company!'
| Mr. Roberts was replying that he
did not believe philanthropy entered
into business, when Attorney Lindbury
protested against the question
~ submit said Mr.. Lindbury,
"that arguments between the ques,
tioner and the witness are unseemly. "
| The form of the question was
changed, and Mr.. Roberts answered
that since the formation of the steel
corporation business men in this coun.
try had new ideals, which governed
them to avert destructive competition,
| "I believe he said, "that through
the Gary dinners men in the steel bust
ness have accomplished great results
| for the benefit of all by the applica-
ton of good common American sense.
| Example has a great deal to do with
the affairs of this world -
Potential influence of Morgan.
With j. P, Morgan in mind, though
not mentioning him by name, Chair
man Stanley asked:
SIS there In the financial world to-
day Il man of infinite power and vast
| interests whose example is regarded in
a way as the law by big business
| mcnl'
'No,n replied Mr., Roberts "I
think there are certain ideals of co.
operation which govern us all, ideals
that may be personiied In certain in
| dividuals. -
"Is there such an individual in
America?' asked Mr.. Stanley.
Yes, ] think so.
Where does he reside7'
81 think his name is legion At
least that is the hope for the future
of this country. If we destroy ipdi
viduals we surely will get into
| trouble
"Who is the example in the steel in
dustry7'
81 think no one man particularly, +"
! lis there not Que man, y Stanley con.
| tinued. "'whose example business men
! of the nation follow, because of his
immense grasp of modern conditions. his
touch with potentates, the railroads of
| the nation, the steel-making business,
the establishment of banks and who
can not only frame business conditions.
but change them by the mere press of
a button?f'
'' ] suppose | have in mind whom YOU
| mean, Mf. RODeTtS answered Smlllnp-
| ly, What he may accomplish for the
| good of the government and upholding
| the business interests of the country,
nc does by reason Of his qualities and
his ideals. 1t is not because of his
| personality and name. 1t is the ideal
which he represents that makes the
country what it is. -
Matter Of Steel Rails,
Mr. Roberts testified that he was a
director of the United States Steel
corporation and of the PENNSYLVANIA
| railroad. which he said owned stock
! in the Cambria and Pennsylvania Steel
companies and gave orders for rails
| to the Cambria, Pennsylvania and
United States Steel companies He
said the steel corporation directors,
who also were directors of the rail
road, had nothing TO do with detcrmin-
ing prices for rails.
Three Pennsylvania railroad direc
tors. he said. also were. steel corpora.
tiou directors, ". c. Frick. Clement c.
Griscom and himself. The price Of rails
never came before the directorate of
either corporation when he was pres
ent. he said. They were fixed by pur
chasing and selling agents.
Mr.. Roberts said that once. before ne
became steel director, he told Presi
dent McCrea Of the Pennsylvania rail
road that prices quoted by the steel