The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-06-01
STEEL PR0DERs AsT0UNO-
Ed BY GARY's EVIDENCE
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CONTINUED from First Page.)
Steel Institute, which Cary declared
was an association of men Interested
In iron and steel for the discussion
of economic and ethical questions.
Gary offered to furnish the commit
tee the stenographic reports Of the
meetings Of the institute and the ia
nous Gary dinner-at which most OF
the Institutes business Is transacted.
Il now snow you Il copy of pub
lication called the Iron Monger and
Universal Engineer" said Stanley. 1t
is an English trade paper. ! have
heard for some time and have learned
from reading these trade journals
that the ultimate purpose of present
negotta tons by the iron and steel in
stitute was to reach an anffcabIe
agreement among the eminent men in
the steel industry here and abroad.
so that there might be a steadylng of
prices throughout the world similar
to the steadying OF prices that results
from the organization of the present
conditions in the steel industry here.
Dread of Worldwide Trust
"One of the moving causes that
made me introduce the resolution I'M
Quoted was the dread that within
ninety days this institute or some sim
liar body would have come TO such an
agreement.
This issue of the Iron Monger of
May / 3 sets forth that such an agree
ment is pending and that its consum
nation will be due to the active and
able efforts of the president OF the
iron and steel institute-Elbert H.
Gary"
Mr.. Stanley then tried to adjourn
the meeting after instructing Judge
Gary to prepare an explanation of
this charge for the next hearing, but
the steel magnate rose. and waving
his arms about his head, demanded
that he he heard.
Il wish TO say that / appreciate the
frank way the chairman has put this
question" he said, "and 1 wish to
say that / will freely and fully tell
all of our aims and objects In this
connection. and, / think, will set the
minds OF the committee at rest as
to any possible danger"
Willing to Tell 1t All.
Gary took the attitude throughout
the hearing that he was willing to
give the committee any Information
II might desire. His lawyer and three
assistants were loaded down with
documents and papers.
During the examination, Gary was
questioned as to the standing of the
Tennessee Coal and Iron Company,
which. according to John W. Gates,
was forced into the combination
Was the T. c, & 1. Company an
Independent competing company -
asked Mr.. Stanley.
oh, yes. it was independent
enough 30 far as It's business was
concerned" said Gary. with a quiz
ztcai smile. But IL was quite de-
pendent SO far as getting livelihood
was concerned"
Gary declared the T. c. & l. now
owes the steel corporation $1o,l6T.-
1880 of uncapitalized debt
Gary viii continue his testimony at
10 O'Clock tomorrow.
Get First Hand Evidence.
A probe Of the steel trust from the
inside began to-day when the Stan
ley investigating committee of the
House met with Judge Ebert III
Gary. chairman OF the board of d.
rectors. Of the steel corporation, and
TOUR others directors on hand for
examination. Following the sensa-
tionai testimony OF John w. Gates
ON saturday, the committee decided
10 so at the trust first hand. and
TOT that reason summoned the OFF,
Gals Of the big corporation them
selves In addition to Gary, those
on hand for to-dayts hearing were
Norman Is, Ream. Percieal Roberts,
Jr. James Gayley and W. t. Dick
son,
When the committee convened r.
'. Lsnaabery was granted permissi on
10 appear before the committee as
attorney Tor the United States Steel
Corporation.
Judge Gary on stand
After Stanley had introduced the
members OF the committee TO Gary
Ream and the other steel trust re-
personalities, Gary was called as the
nrsf witness lie announced himself
as the chairman OF the board OF direc-
tors, chairman of the finance com
'nliffcs nffa chtef executive officer OF
the United States Steel Corporation
Stanley Immediately questioned
Gary with reference to the steel sit
uation prior To the organization OF
the United States Steel CORPORATION
lie took UP each Of the subsidiary
companies of the big combination
and ascertained that they were com.
peting in the steel industry before
the arnaigamation, The capitalization
or the various companies was also
explained.
Gary then outlined the complete
domination of the subsidiary compa-
MES by the steel corporation In re.
ply to question by Stanley as tc
whether the Carnegie Steel Com
pany. one competing company. com
pefed with other subsidiary comma.
MES after the organization of the
steel trust, Gary said
i should say II does compete
putting my Interpretation on the
word. You may place dtffereu,
construction. Undoubtedly the sub.
sfdiary companies of the United State,
Steel Corporation are influenced and
ultimately controlled by the steel
corporation because II is the owner
OF the stock OF the various compa.
mics. The subsidiary companie. hay,
ing each board of directors and
a fun line OF officers. have the rish,
and power 10 act independently O,
the United States Steel Corporation
1t may he assumed, however. tha,
II the conduct OF any subsidiary com.
pany was inimical or displeasinr II
the steel corporation, it would h
only a matter Of time before the ar.
tive management over the compan,
would be changed
THE steel corporation exercises 8
sort or right of recall over the officers
OF the subsidiary companies?' asked
Stanley
That's about IT," returned Gary.
The subsidiary companies OF tbs
steel corporation have a common in.
49,,