The Washington herald., 1911-06-02
STEEL TRUST HEAD
FRANK ON STAND
Gary Denies Plan to Control
the Trade.
OFFERS TO FURNISH BOOKS
Witness Before House Committee
Tells OF Huge Sum Paid Carnegie
and Also Denies Knowledge of
World Trust in steel Trade-Sub-
sidiaries Independent in Measure.


lucky, chairman of the House Com
mittee which is investigating the United
States Steel Corporation, declared at a
hearing Of the committee yesterday that
he had moved against the steel corpo-
ration because he had heard that there
was a plan on foot to nullify any pos
sible tariff legislation by bringing about
worldwide fixing Of steel prices.
This statement was made while Judge
E. H. Gary. chairman Of the executive
committee OF the steel corporation. was
on the stand. Judge Gary promptly de-
MED that there was any justification
for such a statement. He readily offered
to furnish TO the committee all the min
utes and records of the Iron and Steel
Institute, which Chairman Stanley ap-
parently regarded as possible instru-
mentality in this international under
standing.
Judge Gary was one OF several United
States Steel officials who were at the
hearing. The others were Vice Presi-
dent w. b. Dixon, James Gayley. w. ].
Filbert. ASSISTANT to Judge Gary. and
Norman B. Ream, Richard V. Linda-
bury appeared. as the counsel of the
corporation. Judge Gary was on the
stand only an hour and he will be
called as a witness again to-day
All Work in Harmony.
In beginning. Chairman Stanley
asked Judge Gary many questions In
regard to the subsidiary companies of
the United States Steel Corporation.
Judge Gary said that the subsidiary
companies were independent In a meas
toff In
to the policy OF the steel corporation
the corporation would. OF course. exer-
else its authority.
In other words. you have the right
of recall" observed Chairman Stanley.
Judge Gary said that the officers OF
the subsidiary companies also were
named by their stockholders. but that
a suggestion made by the parent COM
pany would be respected.
In reply to q question IN regard to the
purchase by the United States Steel Cor
poration Of the Carnegie company, Judge
Gary said that the corporation deliv-
cred to the Carnegie interests So3. $4,000
in bonds, SOS, 2IIrl20 in preferred stock. and
$50. .2T9. .0+0 in common stock
The Tennessee Coal and Iron Company
was mentioned only once in the course
Of the days hearings. when Chairman
Stanley asked II II was an independent
concern before the steel corporation took
it over Chairman Gary replied that 1t
was. and added:
1T was very much dependent so far
as its means OF gaining livelihood was
concerned
Judge Gary declared that he was ready
and willing to tell all the details in re-
gard TO the taking over OF the Tennessee
Coal and Iron Company by the steel cor
poration. but Chairman Stanley suggest
ed that the committee would call for that
later.
Glad to Give Data
Judge Gary took occasion to make this
statement:
Mr.. Chairman. at any time during your
investigation we will send you informa-
ton concerning any subject in which the
committee IS interested. We will give you
all the facts and figures pertaining to our
corporation, or any of the subsidiary
companies OF our business"
II can assure you, Judge" returned
Chairman Stanley, that the committee
appreciates your willingness and prompt
ness in this case. The committee Is
hungry for facts"
I'VE will stand or fall on our record,
whatever It may be-" continued Judge
Gary.
Judge Gary went on to say that the
United States Steel Corporation had moth
ing to conceal. THE Bureau of Corpora
tions has been delving into our affairs for
years." he said.
Chairman Stanley called Mr. Gary's at
tention to a statement attributed to him
In g newspaper that the Attorney General
had investigated the United States Steel
Corporation and given 1t clean bill
of health
II never made such a statement and
It isn't true" declared the witness. The
committee then took up the Iron and
Steel Institute Mr.. Gary said he was
president Of the institute.
What is the character Of the orgeniza-
ton? What concerns belong to ft?'
asked Chairman Stanley.
No concern mas anything to do with
it, replied Mr.. Gary. Its members are
individuals. I shall be glad, Mr.. Chair
man, to send you the charter. bylaws.
the names of the members. and the min
utes of the proceedings Of this institute"
No Effort to FIX Prices.
Chairman Stanley was undoubtedly
seeking light on what he thought might
be a medium Of fixing prices for the
steel trade.
What are the purposes OF the insti-
tute?" he asked again.
THE purpose" said Mr.. Gary. rs to
collect and disseminate information con-
cerning economic and ethical questions
applicable to and in which all iron and
steel manufacturers are interested. If
you read the minutes of the last annual
meeting in October you will get an idea
of the objects"
Chairman Stanley said that he had seen
il stated in an editorial article in an
English trade journal that an interna-
tional agreement was being sought be-
cause the Federal government was active
against the steel corporation and Con-
eress was threatening a tariff reduction.
and both of these conditions could be
met by such an agreement Mr.. Stanley
wanted Judge Gary to tell the commit
tee at it's next meeting all he knew about
this.