The evening world., 1911-06-08
His Ruinous Methods of Com
petition Were Forcing Rivals
10 the Wall.
CRISIS WHEN HE QUIT.
Tells Congressman Mag
nate Would Have Controlled
Country's Steel Trade.

WASHINGTON. June s-JudGe Eibert
II. Gary while on the stand to-day be-
mi;tee. gave Andrew Carnegie a hard
knock when he declared that II. the
former magnate had continued In the
steel business and pursued r~uinoue
competition methods he had adopted.
he would to-day control every steel
company in the United States.
Mr.. Gary denied that the steel Trust
had ever attempted to monopoiixe
trade. nor had 1t sanctioned railroad
Relating. Publicity he declared 10 the
policy of the corporation.
M. Gary undertook to show that the
United States Steel Corporation docs
not now control as large d percentage
OF the steei business of the United
states as II did on the day OF its for
nation. He insisted hat as agains.
q o. per cent. control OF the domestic
business In 1901. the corporation at the
present time Is able TO direct only 20
per cent. Of domestic output. OF ex-
port business. however. Mr. Gary said
u w ''ilvf eNlVu tptthi Olltu hbout
70 per cent.
while on the subject OF export busl-
ness Mr.. Gary referred again 10 the pro-
posed formation OF an international steel
institute az Brussels.
Il nope" he said. that through an
interchange of ideas there can h
brought about q condition OF equilibrium
In tss- worlds steel trade.
Il do not want any one TO got the ides
that any one considers securing AZ
agreement. II you will look into the
minutes of our meetings you will see the
matter outlined and ! think you will see
hat there is now some disposition on
the part Of Germany TO recognize our
rights from . nelghboriy standpoint.
The Germans and Beixians are the most
aggressive and largest foreign manu-
facturers."
NO INTERNATIONAL TRUST 10
CONTEMPLATED.
Mr.. Gary insisted that there was not
"a scint.lla Of truth 10 the idea that
an international trust was contenn-
plated. lie said that In arranging for
the meetings he had entertained DO
thought of going beyond the rules OF
proprlety or the law"
Mr. Gary on resumins tine stand to-
day had asked the comm.ftss for an
opportunity to tell the eAsct percent
age OF the steel business Of the coun-
try which the corporation controlled
nj the time Of It's organization. and
how hat percentage had been reduced
since that time.
Mr.. Gary also desired 10 tell the com.
mittes what companies. taken over
when the Steel Corporation wss formed.
we're competitors Of each other and
whaI companies ware o
When the United States Steel Cor
poratiOn was formed IN 1901. ssid Judge
| Gary. the companies actually Ia com
petition we're the Carnegie Steel
Company. a subsidiary Of the Federal
Steel Company; the American Steel
| Hoop Company and the National Steel
Company. The American Steel and
! Wire Company. the National Tube
Company. the American Tin Plate
! Company. the American Sheet Steel
! Company. the American Bridge Com
pany and the Lake Superior Consoii.
dated Irpn Mines Company were not ID
competition with each other. nor with
the companies hrst named.
The principal competition was be
tween the Illinois Steel Company an
the Carnegie Steel Company" said Mr.
Gary. in the sense that they Mer'
making the Same articles, principal!
rails. But freight rates from Pittsburl
to Chicago were 20 large. nearly s
per ton. that the markets were fairl,
well defined.
RAPs CARNEGIE FOR HIS sUsI
NESS METHODS.
1T is a fact. though. that the Cal
negie Company did At times compel
with the Illinois Steel Company outsid
It's natural market. Once I remembe
that the Carnegie sold rstis at SIG whsI
the Illinois Steel Company was con
sldering going into the hands Of re
celvers. and when It DID actually CON
near doing that.