Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-06-02
FLAT DENIAL BY JUDGE GARY
Head Of Steel Trust Says There is No
World Wide Combine.
WILL GIVE ALL THE FACTS
United states Corporation Controls
All It's Subsidiary Companies
and collects Their
Dividends.

United States Steel corporation today fatty
denied any knowledge OF the proposed
formation OF a combination to control the
steel trade Of the world. Mr.. Gary APP
peared before the house committee investl-
eating the steel trust" and declared that
he had come to Washington TO frankly tell
all ne knew OF the big corporation
The disclaimer to the worldwide com
bination as called out by a statement by
Chairman Stanley that Mr.. Gary was &C
credited with being the directing genius of
such trust Mr.. Stanley intimated that
these reports had had much to do with the
inquiry started by the house Of represent
tauves .a .t
The examination OF Mr.. Gary brought out
the fact that the Department OF Commerce
and Labor and its bureau OF corporations
are not cooperating with the Stanley COM
mittee. Mr.. Stanley asked the witness IL he
knew whether a report Of the bureau OF
corporations on Its investigation OF the
steel corporation had ever been submitted
TO President Taft OF former President
Roosevelt Mr. Gary said he did not.
Control of Subsidiaries.
There is not any doubt" Mr.. Gary told
the committee today that the United
States Steel corporation, as the owner of
most Of the stocks of the subsidiary com
panies ultimately controls those subsidiary
oompaniet including their management
and conduct" ..
Asked II the Carnegi Steel company now
competes with other subsidiary companies
In the steel corporation. Mr.. Gary said:
Il should say 1t does, putting my inter-
probation on the word. 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, II the con-
duct Of a subsidiary company was antag-
onistc in any way Il would only be
question OF time when the administration
of that subsidiary company would be
changed"
You mean the parent company would
control the policies of any subsidiary COM
panyT'
1T might not for the moment or the
month. but when the time to elect officers
arrived, It would"
ut would exercise the recall as 1t were?"
asked Representative Brantley.
"sYs, you might put It that way" Mr.
Gary answered.
OlAtrlnuNAGH OF DtVtdend4s
Are the profits of one subsidiary concern
measured as the profits of all? that is,
does the parent company distribute the
dividends Of all7" Chairman Stanley asked
THE earnings OF the subsidiary compan-
les" Mr.. Gary answered, whenever divi-
dends are declared, go into the treasury Of
the United States Steel corporation. That
corporation being the owner of the divi-
ndn ~ a
lit. The Subsidiary companies have no in
terest In the dividends after they are de-
ciared." ~
who chooses the officers of the sub
sldiary companies7"
"Of course their boards of directors
choose them but nevertheless a suggestion
from the parent company as you call 1t,
would be recognised"
Mr.. Gary said he was chairman of the
board Of directors Chairman of the finance
Committee and chief executive officer of
the steel corporation and a member Of the
board Of directors in the subsidiary com
panles. such as the American Bridge COM
pany, American Steel and Wire company,
Carnegie Steel company, American Sheet
and Tin Plate company.
Mr.. Gary declared he would furnish the
committee all the facts and figures that
the committee wanted.
"Ail that you need to do is to request
whatever you want" he said, land we
will furnish 1t. We will stand or fall on
our record" -
He declared the bureau of corporations,
the report OF which the committee has
been endeavoring to get from Secretary
Nagel. with the consent OF the president
had been investigating the steel corpora
ton for five or six years
''The governments Investigation through
that source has been most thorough and
exhaustive" said Mr. Gary. 1.-THE bureau
OF corporations must have a house full of
facts II has cost the steel corporation
hundreds Of thousands OF dollars to COM
ply with the requests OF tina. bureau for
information and statistics"
Iron and steel Institute.
Mr.. Stanley asked as to the nature of
the American Iron and Steel institute Mr..
Gary explained that II was an organization
OF iron and steel men which met 70 discuss
matters In which steel men were inter-
estsd.
MIR. Stanley asked about the Gary din
ners OF steel men in New York and
whether the press was admitted to them.
Mr.. Gary said the trade papers were rep
resented.
'Ia It not fact that the American Iron
and Steel institute is an international or
ganization, seeking to interest foreign steel
men in a combination OF business affairs?'
vas asked.
Mr. Gary started to reply, when Chair
man Stanley interrupted: II have heard,
- said, from time TO time and have read
In foreign journals and others that the ul-
Innate purpose OF the American Iron and
Steel institute was 20 reach an AMIGA BILE
agreement among steel men In this and
foreign countries. 30 that there might be
necessary steadying Of prices in the rest
Of the world, similar TO the steadying of
steel prices in this country.
zone OF the moving reasons why / intro
dueed the resolution providing for this in
quiry was the dread that within ninety
days this institute or some one would have
effected such an agreement l have heard
that such an agreement was regarded as
necessary on account OF the fact that the
federal government was active to prevent
such agreements ia this country and that
the federal congress was liable TO alter the
tariff schedules, both OF which could only
be met by an International organization
The chairman called attention to an
edfforfaI IN the apNa,, No.