New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-27
Directors Issue Statement That
No Negotiations 10 This End
Ere in Progress.
"NOT RESTRAINING TRADE"
Declare Company Has Scrupu-
lousy Observed the Law and
Recognized Rights of Com
petitors and Consumers.

issued, by Mr. Gary late last night. set
at rest the rumors that the United States
Steel Corporation was contemplating
dissolution or disintegration. either vol
unfairly or at the demand OF the federal
government
1t is the belief Of the directors Of the
company that the organization is legal
and that its management is proper Ac-
cording 10 the statement the directors
are advised by it's counsel that its exist
ence is not in violation Of the Sherman
act as interpreted in the recent decision
Of the Supreme Court. The statement
follows:
Pursuant 20 the unanimous vote of the
board Of directors Of the United States
Steel Corporation, at meeting held this
| afternoon. at which there we're present
! J. Perpont Morgan, H. c. Frick. Norman
| 8. Ream, P. A. 3. Widener. Robert Win
cor, Ebert II. Gary, George w. Perkins,
| John 2. Dryden, Samuel Mather, Daniel
| G. Reid, Henry Walter, James A. Farrell
and James n. Reed, the following state
| n1ent is published:
! mo negotiations whatever have taken
/ place between the Steel Corporation and
/ the Department Of Justice locking 10 the
| dissolution or disinteqration Of the cor
| poraton. The corporation was organ
ized for business reasons, and purchased
/ its various plants 20 promote such busi.
| ness and not TO restrain trade or obtain
monopoly. In all it's operations ths
company has scrupulousy observed the
law and recognized the Just rights OF rs
| com petitors and the consumers OF is
products. So far as its directors are
| aware, no complaint has ever been made
! AGAINST il by either of these interests.
! The directors are advised by rs counsel
that It's existence is not in violation or
the Sherman act as interpreted IN tho
recent decisions OF the Supreme Court.
"ln view Of this record and this sd'
vice, the directors fee that their duty 70
their stockholders, their employees and
! the public requires that they should set
at rest all rur1ors 20 the effect that they
are contcn1 plating any voluntary disso-
| luton or cisinteerstlon OF the corpora
ton. or have any belief that Il is subject
10 such dissolution or disintegrston by
| leua action. We believe THAI the organ
ization is legal. that It's management is
! proper. Its properties are OF immense
| intrinsic value and the corporation is OF
berefit 70 the public interests.
"J PlERPONT MORGAN,
ElBEHI n. OHHfs
COMMITTEE of board Of directors
Against Voluntary Dissolution.
A steel man familiar with the affairs
Of the Steel Corporation said yesterday:
You may rest assured that the Steel
Corporation is not going into voluntary
dissolution. If the corporation were
forced TO dissolve il would mean revo-
luton in the steel trade In general.
More difficulty would be experienced in
competing in foreign markets. as costs
would certainly 90 higher. The Steel
Corporation. with its low cost Of prOduc-
ton. IS the only concern to-day that can
compete with the German and British
steel manufacturers The export bust
ness Of the company alone keeps close
TO $4,000 men employed, and. what is
more important. this business is heavier
in periods Of depression. In other words,
IL keeps men employed who would other
wise be idle"
He added that while the statement Of
Attorney General Wickersham on Mon
day would seem to indicate that he had
4 suit against the Steel Corporation in
mind. he believed that no hasty action
would be taken.
Yesterdays meeting Of the directors
was the first that Mr.. Morgan has at
tended since his return from Europe.
Among the other members Of the board
who were present We're George w. Per-
kins. John F Dryden. Robert Winsor.
Daniel c. Reid. p A. B. Widener. Henry
Walters, Robert Mather. James A. Far
reu and ex-Judge f. II. Gary.
The following statement which had
been read at the meeting Of the board
was given out by Judge Gary:
rv,s.,r, conditions are affecting business
! 70 tHe extent that instead Of being booked
/ for forward delivery, customers are SuylnS
only for immediate requirements. Never'
theless the volume Of prompt business,
| strange as II may appear. Is larger than
usual specifications running Upward OF
! O00O tons o day. or the tJNVV IONS on
! corpany business II may be said thdt from
the standpoint OF mill operations IS oet-
Ter business than an o.dtime contract oIuef
Of double the tonnage, inasmucn as II repre-
santa active business capable OF specifca-
tions in sufficient volume 70 require tne
operation OF our mills on the present basis
FOR some months 20 come.
The weekly meeting Of the finance
committee Of the United States Steel
CORPORATION was held yesterday also.
hut so far as could be learned only rou-
tine business was transacted.
Conference in late Afternoon.
shortly after the meeting OF the d.
rectors had adjourned there was con
ference held in Mr. Norgan's library
Those participating in the conferences
were Mr.. Morgan. Judge Gary and Mr
Stetson. The conference lasted until 6:3t
O'clock. and Judge Gary came out alone
He then stated definitely that state
ment would be given out by him az the
Waldorf Astoria at IL o'clock.
After Judge Gary had left Mr.. Morgan
came out OF the building and entered hi
automobile and went aboard the Corsair
which is az anchor in North River.
When Mr.. Morgan left the meeting q
the directors OF the Steel Corporation. Ia
the Empire Building. he appeared TO b'
in very bad humor and his manne
was not improved by failure on thl
mart OF the elevator man 10 stop fo
him as II passed the seventeenth hooi
: Mr. Morgan banged on the grating am
called "Down. Down" in thundrou
tones.
i -.