The daily banner. (Cambridge, Md.) 1897-2008, 1911-06-02

chairman of United States Steel Cor
s poration Declares Re Knows of No
| Proposed Combination to Control
Steel Output of All Countries.
! Washington, June ?. = Ebert H.
lGary, chairman of the United states
Steel corporation directors, told the
house investigating committee what
Re saAlrew Carnegie interests got for
4heir propertIts ~ -tsi0 s'f'
great merger.
"The syndicate" said Judge Gary,
delivered to the Carnegie interests
s3O3. 3.45O 900 in bonds, s9S,277,12O pre-,
ferred stock and $90,279,040 common
stock.
This makes s492,0O6,160 face value
of steel corporation securities for
which Andrew Carnegie and his fellow
stockholders sold out.
Judge Gary fatty denied knowledge
of a proposal to form combination to
control the steel trade of the world.
The disclaimer as to the worldwide
combination was called out by state
ment by Mr.. Stanley, chairman OF the
committee, that Mr. Gary was accred-
| tied with being the directing genlous
| of such a world trust" Mr.. Stanley
! intimated that these reports had much
| to do with the inquiry started by the
| house of representatives.
| There isn't any doubt" Mr.. Gary
told the committee, that the United
| States Steel corporation, as the owner
| of most of the stocks of the subsidiary
! companies, ultimately controls those
subsidiary companies, including their
| management and conduct
| Asked whether the Carnegie Steel
| company now competes with other
subsidiary companies in the steel cor
poration, Mr.. Gary said: Il should say
it does, putting my Interpretation on
the word 7 came to be frank and TO
give YOU the exact facts-that you
may put your own construction on
them.
"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 subsl
diary company was antagonistic in
any way, it would only be a question
of time when the administration OF
that subsidiary company would be
changed"
You mean the parent company
would control the policies Of any sub
sidiary company" was asked. 1T
might not for the moment or the
month. but when the time to elect Off
GERS arrived, it would" was the reply
"It would exercise the recall, as II
were?" asked Representative Brantley
of Georgia. "Yes, you might put il
that way" Mr.. Gary answered.
Are the profits Of one subsidiary
company measured as the profits o
au?" Mr. Stanley asked. THAT Is
does the parent company distribute
tho dividends of all?" The earnings
of the subsidiary companies Mr. Gary
answered, whenever dividends are
declared. go into the treasury of the
limited States Steel corporation. Tina
cornoration being the owner OF th'
dividends. OF course distributes then
as it sees fit The subsidiary com
naries have no interest in the div
1eode after they are declared.
Mr. Gary said he was chairman o
tho hoard Of directors chairman o
the f.uaDle committee and chief eN
-cyljyf. o..leI OF tie STEEL corporation
md a men ,:er of tie board OF diref
,nrs IN tie subsidiary comnanies. sucl
ss thc Am merican Bridge company. tn
Amc1!ran steel and Wire company
Car1.ssic G.oel com2anW America
Sheet and Tn Plate cnrnnany.
Mr.. Gary said ;he Carnegie Stee
con,rany wes = ccwCcting "0mpan
before the organization Of the stee
| .;,, no ,fIdod tHat I've CATnf