The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1911-04-25
GARY NAL LEAVE
u. S. STEEL co.
Continued from Page ID


laws Of the company make the chair
man Of the board the supreme official
Judge Gary. as an intimate friend of
]. F. Morgan and a man trained in legal
procedure. was elected to that position
at the organiza ton Of the trust. Train
ing such as Judge Gary had was con-
sidered necessary because in the first
years of the trust it's problems were OF
legal rather than manufacturing ma
ture.
Now. however the controlling inter
ests Of the great corporation believe
that the organization and conduct of
the trust have been such as to make it
legally perfect The wonderful execu-
tive force developed by Andrew
Carnegie aud taken over at organiza-
ton has been scattered By death. resig-
nation and accumulation of supernuous
wealth.
Differences Regard Trade Policies.
Those of the Carnegie men who have
! left the trust lack incentive to do their
best work, and the supreme manage
ment, having legal rather than manu-
/ featuring trainin. has proved unable TO
restore the efficiency of the executive
staff. 1t has ben found that in spite of
the vast expenditures for improvements
the steel corporation is unable to get
the best results out of its plants.
Differences have also arisen regard /.
ing trade policies.
Although the Steel Corporation is
equipped to do practically all of the
steel business now offered it is not
really doing its proportion. Independ :
ents are getting proportionately more
of the new business than is the trust.
although the trust is supposed to be
able to turn out steel on an avera ge
81 a ton cheaper than the independents.
i 1t was Judge Gary wn.- originated
the idee of maintaining prices even
Though this policy did enable independ-
ents to get more than naturally belong
cd to them. The effect Of this policy Of
benevolent competition has been IL
cause the independent to make great
extensions which the trust has been
competed to equal.
Gary in Favor OF Maintaing Prices.
Il Because of these extensions all the
steel companies of the country have a
capacity far in excess of the normal
demand of the country and are now
running only about 20 per cent of that
apacity.
Judge Gary is committed to a con
tinuance of the-policy of maintaining
prices and it is understood that he will
retire rather than abandon It. 1t !.
understood also that j. p Morgan
! sympathizes with Judge Gary in this
mater. but recognizes the business
Il necessities of the situation.
Judge Gary is a wealthy man and il
abundantly able to retire and devote
his time to his personal interests. II
the last two years he had been elected
I to several new directorates and is now
director of forty-one corporations
among which are several railroads and
banks. II is understood that his name
| will Ibe added to the boards of severa
OF her important railroads and banks
as his judgment is considered remark
; able good on financial affairs and /.
much sought after
President James Farrell, who sue
] ceeded w r. Corey at the head of TIL,
: operating department of the trust re
: GENTLY Is a salesman by training ant
the change now contemplated will pu
in supreme command OF the great or
] lEanization nlanufartuTer, who, actins
in harmoney with the salesman presi
dent. IS expected to cause a revolution
, in the steel business.