The Detroit times., 1911-06-01
REPORT ON STEEL TRUSTS
SECRETS SUPPRESSED


first hand and summoned the officials
OF the corporation themselves In ad.
dition TO Gary, those on hand for to-
days hearing were Norman b. Reem.
Pefciyal Roberts. Jr., James Gayley
and w. d. Dickson.
When the committee convened. X.
v. Lindabery was granted permission
to appear as attorney for the United
States Steel corporation.
Gary, called as the first witness.
announced himself as the chairman
OF the board OF directors, chairman
OF the board OF finance and chief ex.
euctive ofhcer OF the United States
Steel corporation. Stanley ut once
questioned him with reference to the
steel situation prior to the organiza-
ton OF the United States Steel cor
poration. He took up each OF the sub
sidiary companies and asserted that
they were competing in the steel In
dustry before the amalgamation. The
capitalization OF the various COM
panies was also explained.
Outlines Domination Of Companies.
Gary outlined the complete DONNA
ton OF the subsidiary companies by
the steel corporation. In reply to a
VuCoNiOh Wy Otduicy IN W WhCepth
the Carnegie Steel Co.. once a Compel.
ing company. competed with other
subsidiary companies after the organ
izstion OF the steel trust. Gary said:
II should say Il does compete
putting my Interpretation on the word.
You may place a different construc-
ltion. Undoubtedly the subsidiary
companies OF the United States Steel
Incorporation are Influenced and ulti-
mstely controlled by the steel corpor-
alton because II 10 the owner OF the
stock of the various companies. The
subsidiary companies, having each
board Of directors and full line OF
.oficers. have the right and power 10
act Independently Of tho United States
Steel corporation. II may be assun-
ed. however, that IL the conduct OF
any subsidiary company was iaimical
or displeasing to the steel corpora
ton IL would be only matter OF time
before the active management over
the company would be changed.
THE steel corporation exercises a
scrt Of right OF recall over the officers
of the subsidiary companies" asked
Stanley. ,,
That's about Il, returned Gary.
The subsidiary companies have a
common interest, have they not?"
asked Rep. Martin Littleton, of New
York.
Absolutely common interest"
said Gary. The steel corporation
does absolutely no operating 1t man.
ufactures nothing II gets income from
the dividends declared by the subsi-
diary companies
cd Must Obey Trusts Orders.
Any subsidiary company endeavor.
Ing TO do anything inimical to the in.
terests of the corporation would be
summarfiy dealt with, Gary admitted.
He said that hint would be given
the oficers, and II they failed to halt
the Objectionable tactics, they would
be quickly voted out of ONCE.
Who would do that?' asked Stan
ley.
Il sm usually the one who does
that" said Gary.
Gary said he was a director in each
subsidiary company and he gave the
capitalization OF each.
In discussing the absorption of the
Carnegie Steel Co., Gary said the con.
Germ had a capital OF Size, zoo, 900
common and $16o,ooo,ooo preferred
!, stock.
sThe Is syndicate u, ii tSat organized the
United States Steel Corporation paid
to the Carnegie interests 1903 ,450, 900
In bonds, $9S.277.120 preferred stock.
and $90,279, 230 In common stock, OF
the United States Steel Corporation"
declared Gary.
The examination had turned to the
activities OF the American Iron and
Steel Institute. which Gary declared
was an association OF men interested
In iron and steel for the discussion
of Economic and ethical questions"
He offered to furnish the committee
the stenographic reports OF its meet
ings
II now show you a copy of a pub
lication called the Iron Monger and
Universal Engineer" said Stanley. 1T
Is an English trade paper. have
heard that the ultimate purpose OF
present negotiations by the Iron and
Steel Institute was to reach an AMIGA
BILE agreement in the steel industry
SO that there might be a steadying
Of steel prices
This issue Of Iron Monger OF May
19 states that such negotiations are
pending and It's contamination will
be due to the able efforts of the presI.
dent Of the Iron and Steel Institute
Ebert II. Gary.
- VIII Freely Explain Our Aims"
IT wish to say that / appreciate the
frank way the chairman has put this
Question" he said, "and will freely
tell all OF our aims In this connection.
] think II will set the minds OF the
committee at rest, as to any possible
DANGER"
During the examination, Gary was
questioned as TO the standing of the
Tennessee Coal and Iron Co.
Was the T. G. & /. Company an
independent competing company"
asked Stanley.
s"Oh, yes, IL was independent so
far as it's business was concerned"
sAid Gary. But Il was dependent 80
far as getting livelihood went"
sGary declared the T. c. & !. owes
the steel corporation s10,167 1850 Of
uncapitalized debt.
Gary will continue his testimony at
10 O'Clock Friday.