The Birmingham age-herald., 1911-10-27
CORPORATION IS READY TOFIGHT
 FOR EXISTENCE
Governments Action Took Officials Completely By
 Surprise
E. H. GARY REFUSES
 TO DISCUSS SUIT

Other Officials of the Steel Corpora
 tion Are Equally Reticent-Just
 What Effect Suit Will
 Have Not Known
 New York. October 26.-The United States Steel corporation is prepared 10 fight for it's existence. The men at the helm of the great corporation were sl-
 lent when the news came to them that the biow which has been awaited so long mad fallen. Although it was expected soon CT or later that the billion dollar com pine" would be put to test under the sherman law, even the highest officials of the corporation had no inlSling that the suit would be filed at this time.
 The announcement took the steel men completely by surprise, and they declined to make any comment. The attitude of the corporation is set forth clearly, how ever. in a statement issued one month age today. 1t proclaimed then its be- lief that it was within the law, and de- clared over the signature of ]. P. Mor- gan that it would not dissolve volun- tarily.
 'A ' Gary Won't Talk
 Judge E. H. Gary, chairman of the board of directors and active head of the corporation, said today he could not dis ouss the matter in the absence of definite details Francis Lynnde Stetson, general counsel to the Steel corporation, said 1t was perhaps better that dissolution pro- oeedings had been instituted.
 'It is better to know where we stand, he added, than to have all this uncer- tainty, all these rumors and reports nov ing through the air"
 Representatives of the banking house of J. P. Morgan & Co. shared in the sur prise exhibited by steel officials, but would not talk.
 Other officials or directors of the Steel corporation were equally reticent It was 1 said that any statement must come from Judge Gary or MT Stetson. Charles M Schwab, former president of the cor poratlon, is abroad and William E. Corey also a former president, is not il New York.
 The statement defining the attitude of the Steel corporation was issued to put at rest reports that negotiations were lalnder way with the department of jus- tice looking to voluntary dissolution. By unanimous voice the directors au- thorized publication of the statement which was signed by Judge Gary and MT Morgan. The action of MT Morgan in attaching his signature was almost unprecedented and was accepted as dem onstrating the importance given the mat ter.
 After denying that negotiations with the department of justice were pending, the statement proceeded The corpora ton was organized for business reasons and purchased its various plants to pro- mote such business and not to restrain trade or obtain a monopoly. In it's oper ation the -company has scrpulously ob- served the law and recognized the Just rights of it's competitors and the conSum- CTS of it's products So far as it's di- rectors are aware no complaint has ever been made against 1t by either of these interests The directors are advised by it's counsel that it's existence was not in violation of the Sherman act as in terpreted in the recent decisions of the supreme court.
 Tn view of this record and this advice the directors feel their duty to their stockholders their employees and the pub lie that it should set at rest all rumors to the effect that they are contemplating any voluntary dissolution or dsentegra- ton of the corporation or have any be- lief that it is subject to such dissolution or. dlsintegration by legal action. We believe that the organization is legal and that it's management is proper. It's prop critics are of immense intrinsic value and the corporation is of benefit to the pub lie interest"
 Lease Cancelled By strange coincidence the filing of the suit came on the same day that the corporation took steps which many per- sons thought might place it in better position under the Sherman law. The directors at a meeting only few hours before the filing of the suit, sanctioned a proposal to terminate the corporations lease of the Great Northern ore lands It also was decided to reduce the freight charges on ore over railroads controlled by the corporation.
 Some of the most severe criticisms against the corporation have been on the ground that it was in a position to monopolize trade by reason of it's great holdings of ore land and by it's control of means of transportation of ore. The was the position taken by the commits soner of corporations in his recent re- port. and it was thought today's action by the Steel corporation would thus meet some of the most severe strictures. Off cials of the corporation refused, how ever to say this action was expected to have any effect upon the relation of the corporation with the department of justice.
 Because of fear that the corporation would be dissolved, holders of steel stocks and bonds recently sold their securities in enormous amounts. Liquidation became so heavy last month that for time the stock market was demoralized. It was on account of this situation that the di- ractors issued their statements, in 'an ef- fort to stay the storm. They succeeded lions which were thought to be under in vestigation by the government also were sold heavily and market values shrank by millions or dollars a day during the turbulent sessions. The common stock Of the Steel corporation was one of the principal speculative medium, now is sell ing almost 25 points below it's high price of the year.
 Word of the dissolution suit did not reach Wall street until almost an hour after the close of the stock market, so It's effect upon securities has not yet been registered. Steel shares had been heavy all day. The pressure against the s1ock was attributed to many rumors of pend ing unfavorable developments following the directors meeting. Brokers tonight made preparations to place orders in the London market. which opens before the beginning of trading on the New York exchange tomorrow morning To Preach in Opelika