Evening star., 1911-06-08
Gary Tells Committee of Steel
Corporation Methods.
PUBLICITY EVER DESIRED
Denies Arrangement for Dividing
the World Trade.
TREATMENT OF employees
Contends That Wages Have Been
Maintained Despite Cuts
by Competitors.

ny competitors.
Judge Gary, chairman Of the finance
committee OF the United States Steel
Corporation. resumed his testimony today
before the Stanley investigating commit
tee, and found the questions propounded
| to him OF character to enable him to
give answers highly favorable to the
| methods and policies OF his corporation.
The witness was by no means back
ward in availing himself Of these open
ings, and added some statements on his
own account calculated to place the Steel
Corporation in a favorable light.
He earnestly disclaimed intention or
! act on the part Of the steel corporation
to create monopoly in its own hands Of
the steel business of this country. de-
tended its policy OF publicity and its
treatment of employees, and claimed
credit for expanding the export trade of
the United States In steel products.
rs the steel corporation receiving re-
bates from any railroads in this coun-
try?' he was asked by Mr.. Young of the
| committee.
Il answer In the negative most en-
phatically." replied Judge Gary More
| over, In 1905 wrote letter to the presi-
| dents of the leading railroads saying we
would not accept rebates or discriminate
ing terminal favors. and sent a copy of
| the letters to officials of our own sub
sidiary companies as guidance for them"
Judge Gary also claimed that there is
no international arrangement nor gen
tlemen's agreement, for division of the
world trade in steel. and that If such
were proposed he would not consent to
participate.
Former Competition.
At the outset Of the committees ses-
sion today Representative Young of
Pennsylvania asked Judge Gary to de-
scribe the competition among the original
units Of the present United States Steel
Corporation. Judge Gary said that the
principal competition was between the
Illinois Steel Company and the Carnegie
Steel Company. The other companies
were not in substantial competition be-
cause OF difference in products. The
market of the Illinois Steel Company
was west OF Chicago and to some extent
supplied rails to eastern roads. The
Carnegie company supplied rails to roads
centering In Pittsburg. So, while there
was not general competition, on account
of geographical reasons. the Carnegie
company Ola at times go into the west
ern territory.
Il believe that If unrestricted competi-
ton had gone on. the Carnegie Steel
Company would have driven out OF busi-
ness every steel company in the United
States" said Judge Gary. He said that
the cost Of rails to the Illinois Steel Com
pany in 1S95-6-1 was higher than to the
Carnegie company, although wages were
not much more than half what they are
today.
Output Of the Steel Company.
Judge Gary said that in 1901 the United
States Steel Company produced 432 per
cent of the pig iron of the country, and in
1910 43.4 per cent. of steel ingots and
castings the United States produced in
1901 65 per cent. and in 1910 54.3 per cent.
OF rails in 1901 it produced 59.S and in
1910 5s.s per cent: of structural shapes
OF wire rods in 1901 77.7 per cent, and in
1910 N.3 per cent. OF wire nails, in 1901
iS.1 per cent. and in 1910. $50 per cent.
He said these figures include the ex
port business. and II this were eliminated
the United States Steel Corporation pro-
duced a little under 80 per cent Of the
products for domestic use.
Judge Gary said that when the United
States Steel Corporation was organized
the export business was less than 10000
tons year, while now 1t amounts to
1,IO,OOO tons year. OF course, the
United States Steel Corporation cannot
sell In the producing foreign countries.
and these sales are made in what are
known as the neutral ports of the
world.
In European countries where the gov
ernments own the railroads the export
trade of the manufacturers is facilitated
by favorable freight rates.
Gentlemen's Agreement Denied.
He denied there is any "gentIemen's
agreement" for a world division Of the
! steel trade and declared he would not
countenance such an agreement.
II I should hear of any such agree
| ment to which the United States Steel
Corporation were a party 1 would make 1t
| my business to cancel it," he said.
Referring to the printed charge of q
violation Of law by dock company at
Cleveland. Judge Gary said that if there
has been such case 1t was in direct
violation of instructions.
Recurring again to the export business,
he said that the United States Steel Cor
poration does 40 per cent of the export
business in steel.
Plants Not Bought to Be Closed.
I'VE have never bought any plants for
the purpose Of dismantling them and
putting them out of business" said Judge
Gary. "If we have dismantled any, 1t
has been for the purpose of rebuilding
| and building better. At McKeesport we
| have substituted entirely new and
better plant for the old one.'''
Have you ever made it part of the
| contract that the owners you bought out
should not re-enter business at the same
placer
| Never" declared Judge Gary.
He said that for ten years prior to the
organization Of the United States Steel
Corporation, excepting the years 1897 and
| 1898 the average price Of steel rails was
| about $2S. the acreage price now prevail
ing.
| of rails was so low. the cost OF iron ore
was also low. The Illinois Steel Com
pany bought ore for 81 y a ton, delivered
| at the furnaces in Chicago.
That was the souphouse year, sug-
xested Mr. Lindabury.
| THAT was the year of the poor mans
| panic and 1907 was the rich mans panic"
| put in Judge Bartlett of Georgia.
Railway Rates.
Judge Gary said that under existing law
and practice the railroads owned by the
United States Steel Corporation cannot
discriminate against independent ship
pers.
| "yos, couIA eharSA nvavhitsrt r.ta. -