New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-02

\ Germ measured as tns rronts OF an man
man Stanley asked. THAT is. does the
parent company distribute the DIVIDENDS OF
| ail?"
THE earnings of the subsidiary COM
psnies, Mr.. Gary answered. whenever
dividends are declared 60 into the treas
ury Of the United States Steel corpora
ton. That corporation. being the owner
% the dividends, Of course distributes them
as 4, sees fit. The subsidiary companies
have no interest in the dividends AFTER
they are declared
who chooses the officers of the sub
sidiary companies"
"Of course their boards Of directors
choose them. but nevertheless sugges-
ton from the parent company, as you call
H. would he recognized
Mr. Gary said he was chairman Of the
board of directors. chairman Of the finance
committee and chief executive officer Of the
Steel Corporation and a member of the
board Of directors in the subsidiary COM
ranies. such as the American Bridge Com
pany. the American Steel and Wire Com
rany. the Carnegie Steel Company and the
American Sheet and Tin Tlate Company
viii Give All Facts and Figures.
Mr.. Gary said he would furnish to the
committee all The facts and figures that
the committee wanted concerning the af-
fairs Of the United States Steel Corporation
ard IT'S subsidiary companies.
"All that you need to DO is to request
what you want" he said, "and we will fur
nish It. We win stand or fall on our rec
ord"
tie said The Bureau of Corporations, the
report Of which the committee has been
cndeavoring TO get from Secretary Nagel,
with the consent Of the President had been
Investigating the Steel Corporation for five
or SIX years
The governments investigation through
that source has been most thorough and
exhaustive" he added. 1.-THE Bureau OF
Corporations must have a house full Of
facts 1t has cost the Steel Corporation
hundreds Of thousands Of dollars 10 comply
with the requests of that bureau for infor-
nation and statistics"
Mr. Stanley askel as 10 the nature of
tho American Iron and steel Institute. NJ.
Gary explained that IT was an organization
Of iron and steel men. which met TO discuss
affairs in which steel men were interested
Mr. Stanley also asked about the Gary
dinners Of steel men I'm New York. and
whether the press was admitted 10 them
Mr.. Cary said the trade papers were repre-
scented.
us II not a fact that the American Iron
and Steel Institute is an international or
ganization. seeking 10 interest foreign steel
men in a combination Of business afairs?"
was asked
Mr. Gary started 10 reply when Chair
man Stanley Interrupted
81 have heard" he said from time 10
time and have read in foreign Journals and
others. that the ultimate purpose OF the
American Iron and Steel Institute was 10
reach an amicable agreement among steel
men in this and foreign countries. so that
there might be a necessary Steadying Of
prices in the rest Of the world similar TO
the steadying OF steel prices in this coun-
try. One OF the moving causes why intro
duced the resolution providing for this in
quirY was the dread that within ninety
days this institute or some similar one
would have effected such an agreement. ]
have heard that such an agreement was
regarded as necessary on account of the
fact that the federal government was ac-
tive to prevent such agreements in this
country, and that the federal Congress was
liable 10 alter the tariff schedules, both OF
which could only be met by an international
organization"
The chairman called attention to an edi-
torial in The London Ironmoneer" which
said that the pending international agree
ment was due TO the active and able man
agement of the chairman Of the board OF
directors OF the United States Steel Cor
poration." He asked Mr.. Gary to prepare
an answer for the committee tomorrow.
The statement of the chairman" said
Ny Gary. is immensely frank and the
question will he met in the same spirit.
will give you all the facts in connection
with that matter. and only wish you had
come TO my office before. Had you done
50. / think could have satisfied you that
YOU have been laborng under a misappre-
hension with regard to the object OF the
American Iron and steel institute and also
as TO your fears of danger"
Mr. Gary said the Carnegie Steel Com
pany vas competing company before the
organization of the Steel Corporation. He
added that the Carnegie company now held
$50 600 900 Of stocks and $3.50 o10 Of bonds
of the United States Steel Corporation.
When Mr. Gary was asked about the sub
eidiary companies Cf the United States
Steel Corporation. and whether or not they
had been competing and Independent com
panies before the organization Of the Steel
Corporation and afterward. he gave the
history Of each company and its capital
stock. and in most instances described IN
what manner they had been competing
companies
Are you a director Of the Tennessee Coal
and Iron Company" asked the chairman
yes, sir
Was it an independent concern prior 10
its absorption by the Steel Corporation
1T was independent of all other corn
panles, Mr. Gary replied, but it was quite
dependent. so far as getting livelihood
was concerned"
The committee has been very much i'm
pressed by the truth Of that statement"
said Mr.. Stanley.
Mr. Gary desired TO recall his answer to
the question.
THAT answer Of mine has no business in
the record" he said. Il had no right 70
make 1t. J would like TO have it recalled"
Mr. Stanley said the answer could be
stricken out. and announced that to-mor-
row he would ask Mr.. Gary about the TAX
ing over of the Tennessee Coal and Iron
Company. The committee will endeavor TO
examine Messrs Gary. Ream. Roberts.
Dickson and Gayley tomorrow.
-----%------------