The Bridgeport evening farmer., 1911-06-01
STEEL TRUST PROBE
 BRINGS OUT STARTLING
 STATEMENT FROM GARY

have the right and power to act inde- pendently of the United States Stee' Corporation. It may be assumed, how ever, that if the conduct of any subsi- diary company was inimical or dis pleasing to the steel corporation ii would be only a matter of time before the active management over the com pany would be changed.''
 The steel corporation exercises Q sort of right of recall over the of ficers of the subsidiary companies? asked Stanley. That's about it, re- turned Gary
 'The subsidiary companies of the steel corporation have common in- terest, have they not?" asked Repre- sentative Littleton, of New York, Absolutely a common interest," said Gary. 'The steel corporation does ab- solutely no operating. It manufae- lures nothing. It gets it's income from the dividends declared by the subsidiary companies
 Any subsidiary company endeavor- ing to do anything inimical to the corporation would be summarily dealt with Gary admitted. He said if the officers failed to halt the objectionable tactics they would be quickly voted out of office.
 "Who would do that?' asked stan- ley. 'I am usually the one who does that said Gary.
 Gary said he was a director in each subsidiary company and gave the cap italization of each.
 In discussing the affairs of the Carnegie company, Gary said the com- pany had a capital of $160 000, 900 com- mon and s6O, ,00O, ,O00 preferred stock.
 "The syndicate that organized the United States Steel Corporation paid to the Carnegie interests $303, ,450, 900 in bonds. $9S,277, ,12O preferred stock and $90, ,279, ,230 in common stock, of the United States steel Corporation" de- clared Gary.
 Stanley showed copy of the Iron Monger and Universal Engineer, an English trade paper, in which he said that he learned that the ultimate pur- pose of negotiations by the American Iron & Steel Institute of which Gary was president, was to report an ami cable agreement among the eminent men in the steel industry here and abroad so that there might be a steadyMg of prices throughout the world similar to the steadying of prices that results from the present organization in the steel industry here. Stanley then moved to adjourn the meeting, after instructing Gary to prepare an explanation of this charge for the next meeting but the steel magnate demanded that he be heard this afternoon.
 "I wish to say that I appreciate the frank way the chairman has put this question:" he said, "and I wish to say that I will freely and rully tell all of our aims and objects in this connec- tion and I think it will set the minds of the committee at rest as to any possible danger"
 Gary was also questioned as to the standing of the Tennessee Coal & Iron Co.,, which, according to John w., Gates, was forced into the combina- tion.
 "Was the T. C. & l. Company an in- dependent competing company" ask ed Stanley. "Oh, yes, it was inde- pendent enough so far as it's business was concerned said Gary. "But it was quite dependent so far as live lihood was concerned.
 Gary declared the T. c. 6 I. conn., pany owes the corporation $10,167, 15S.50 of uncapitalized debt.
 Gary will continue his testimony, tomorrow.