The Birmingham age-herald., 1911-06-10
LAWYER OBJECTS IN 4STEEL TRUST"
 INVESTIGATION First Clash Occurs When Gayley Testifies Before
 the Committee
STANLEY HINTS AT
 MORGAN'S INFLUENCE
Financier May Be Called to Testify. Witnesses Agree Price Agree ments Were Made Before
 Corporation Formed

l Washington, June 9-The first clash be- 1 tween the House committee of inquiry into the United States Steel corporation affairs and counsel for that combination, R. V. Lindabury, occurred today. when | Percival Roberts, Jr., director, was | under examination. MT. Roberts and former Vice President James Gayley of the corporation were today's witnesses. both testfying that agreements as to par ceiling of output were made between steel manufacturers before the Steel cor poraton was formed.
 Representative Beal of Texas asked a faoetious question as to the philanthropy
 o motives" that actuated the Steel corporations acquisition of the Tennessee Coal, Iron and Railroad company. Alt torney Lindabury protested and on his demand the question was materially modi- fled
 The committee today sought to show that through the Gary dinners" the prices of steel products were maintained and competition curtailed as effectively | as they were prior to the Steel corpora tions formation. by gentemens agree nients made despite the Sherman anti | trust law. Much of the examination of 1 MT. Roberts dealt with a more or less academic discussion of J. Pierpont Nor gan's industrial potentiality, though MT. Morgan's name was largely avoided in the questioning, and with the system of in- | terlocking directorates of the Steel cor poration and other big industrial enter prises
 Was it the same spirit of philanthrophy that guided independent steel manufac- turers to make agreements before the organization of the United States Steel l corporation?'' Representative Beall asked Director Roberts 'as prompted the Steel corporation to save the nation in 1907 by taking over the Tennessee Coal. Iron and Railroad company7'
 MT. Roberts was replying that he did not believe philanthropy entered into busi- ness, when Attorney Lindabury protest ! ed against the question.
 ''I submit" said MT Llndabury, that arguments between the questioner and the witness are unseemly.
 The form of the question was finally changed and MT. Roberts answered that since the formation of the Steel corpor- l alton business men m l1lS country Hdu new ideals which governed them to avert destructive competition. T beleve, he said that through the Gary dinners men | in the steel business have accomplished great results for the benefit of all by the application of good common American sense Example has a great deal to do with the affairs of this world"
 Is Morgan the Leader?
 With J. Pierpont Morgan in mind. though not mentioning him by name. lCharman Stanley asked:
 'tIs there in the financial world today lman of infinite power and vast interests whose example is regarded in a way as the law by big business men?'
 ''No,f replied MT. Roberts. q think there are certain new ideals of cooper ation which govern us all, ideals that imay be personhed in certain individuals
 "Is there such an individual in Amer ica?" asked Mir. Stanley.
 Yes I think so.'
 ''Who is the example in the steel in- dustry?"
 q think no one man particularly" "Is there not one man." Mir. Stanley continued. whose example business men of the nation follow. on account of his Immense grasp of modern conditions. his touch which potentiates the railroads of The nation, the steel manufacturing busi-
 
 extends to all the multifarious ramifica- tions of business of the country and who cannot only frame business conditions, but change them by the mere pressing Of button?"
 q suppose I have fin mind who you imean." Mir. Roberts answered smilingiy. "Whatever he may accomplish for the good of the government and upholdins the business interests of the country he does by reason of his qualities and his ideeis. Tit is not because of his personality and name. It Is the ideal which he represents that makes the country what it is.''
 Mr. Roberts testified that he was d. rector of the United States Steel corpor- ation 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, Il Pennsylvania and United States Steel companies. He said Steel corporation di- rectors who were also directors of the railroad had nothing to do with determin- ing the prices for rails. The Pennsyi- vania railroad directors, he said. were also Steel corporation directors, H. C. Prick. Clement c. Griscom and himself, The price of rails never came before the directorate of either corporation when he was present he declared. They were fixed by purchasing and selling agents. Mir Roberts said before he became steel director he told President McCrea 1 of the Pennsylvania railroad prices quoted by the Steel corporation for rails based on new specifications were too high. At his instance Mir. McCrea saw Mfr. Gary ''and the Steel corporation satisfactorily modified it's prices.'
 Bylaws Cited MT. Roberts cited the bylaws of the Stes' corporation and the Pennsylvania : railro. i, which prohibited directors from voting O.. contracts between the two com panies.
 The committee will resume it's inquiry next Tuesday.
 Many inquiries are reaching the com mittee as to when Mir Morgan Is to bs . | summoned as a witness. Chairman Stanley and other members decline to commit themselves, but 1t is reported MT. Morgan will be subpoenaed , and asked many questions relating to his interests in the steel and railroad bus- ness, his banking connections and infiu- ences and his part in the organization of the United States Steel corporation and its absorption of the Tennessee Coal and Iron company during the 1907 panic. Denial that Andrew Carnegie, by