Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-06-08

fore the Stanley investigating commit
tee today, continued his testimony con-
corning the steel business. He named
companies that were competitors when
the corporation was formed in 1901.
The principal competition. he said. was
between the Illinois Steel and the Car
negie Steel companies, but freight rates
were such that the markets were fairly
well defined.
NEAR RECEIvERSHIP.
Despite that, however. the Carnegie
| did come in active competition, and
! once when Carnegie sold rails at $16
the Illinois company came near going
| into the hands of receivers. He be-
| lieved that had there been unrestrained
competition the Illinois company would
have been driven out Of business, and,
! If the Illinois company's former man.
agemert continued, Carnegie would
| have controlled the steel business OF
| the United States.
Conditions improved after the Fed
eral Steel company was formed, he
said. In 1901 the United States Steel
corporation practically controlled the ;
steel industry, he continued. Gary sub
mitted figures, however, calculated TO
prove that this control had been declin-
ing rather than increasing.
NOW GOVERNS BUT HALF.
Judge Gary told the investigating
committee the steel corporation, which
| In 1901 controlled 80 par cant OF the
business in the United States, not con-
haff
the corporation controls the EXPORT
business, but denied there was any in
tention whatever Of organizing an In
ternational trust"
CONTRADICTED GATES.
Judge Gary told the house committee
OF inquiry yesterday a version of the
formation Of that enterprise which
contradicted the testimony Of John w.
Gates that the threats of Andrew Car
negte to build rival railroads and tube
works had induced J. Pierpont Nor
gan 10 institute negotiations culmiDat-
ing in the gigantic steel combination.
Mr.. Gary also declared that II former
President Roosevelt had not approved
of the absorption OF the Tennesssee
Coal and Iron company by the Unitei
States Steel corporation he, Mr.. Gary,
never would have voted to conSum
mate that deal.
DISCUSSED PANIC.
Mr.. Gary discussed the financial
panic of 1907, when the Tennessee
company was taken over in a claimed
effort to avert the failure of the New
York brokerage firm of Moore &
Schley and consequent disastrous Is.
suits In the banking world.
You have no idea" be said, "of the
financial frenzy which possessed New
York in that panic. 1t would have
been very easy for that panic 70 have
gone beyond all bounds and affected
the entire country. Every night dur
ing that time forty or fifty leading
bankers of New York were gathered III
J. Pierpont Morgans library discu5s-
ing the grievous situation, striving as
best they could to give support TO the
weaker banks and prevent spread OF
the panic. From day To day these men
did not know what bank would nexth
be attacked by a run OF depositors. '
WOULD BE SUICIDAL.
ANY man interested in the banks
of New York at that time would 10
more think of doing anything TO injure
any other bank than one of us would
think Of throwing a lighted match into
a powder magazine. He could not In
jure another bank without injuring
himself-and any decent man, witn
sense enough 10 protect his own inter
ests. would not Intentionally do any-
thing to injure another"
ROOSEVELT is PRAISED.
This declaration was made after Mr.
Gary had been asked for more details
relating to his conference with Mr.
Roosevelt regarding the Tennessee
deal and his declaration that he re-
garded Mr. Rooseyelt's refusal TO Ia
terfere in the transaction as an act oil
great Constructive gtatesmausbip
Chairman Stanley interjected de
structiye as well as constructive"