Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-06-10
TO QUIZ MORGAN
ABOUT STEEL
CORPORAL ION
INTERESTING SESSION OF
INQUIRY COMMITTEE
Congressman Anxious to Know
Just How Far One Mans In
fIuence Dominates Big BuSi-
ness Of Country,
Iny Morning journal Special Ieased wIrsi


WASHINGTON, June 9--The first
clash between the house committee of
inquiry into the United states steel
corporation and counsel for that COM
blnation. Il. V. Lindsbury. occurred
today when Percival Roberts. Jr, a
director was under examination.
Mr.. Roberts and former Vice Pres
ident James Gayley of the corpora
tion. We're witnesses, both testifylng
that agreements MS to parcelling Of
output We're made between steel man
ufacturers before the corporation was
formed
The committee sought to show that
through the Gary dinners the prices
OF steel products were maintained and
competition curtalled as effectively az
they We're prior to the corporations
formation, by gentlemen's agreements,
made despite the Sherman antitrust
law. Much of the examination OF
Roberts dealt with an academic dis
cussion of j. Pierpont Morgan's indus
trial potentiality, though Mr.. Nor
gans name was largely avoided, and
with the system of interlocking di-
rectorates Of the corporation and other
big Industrial enterprises.
Was it the same spirit OF philan-
thropy that guided Independent steel
manufacturers to make agreements
before the organization of the United
States Steel corporation Representa-
tive Beal asked Director Roberts, "as
prompted the steel corporation to save
the nation in 1907 by taking over the
Tennessee Coal and Iron company"
Mr.. Roberts was replying that he
did not believe philanthropy entered
into business when Attorney Linds-
bury protested against the question.
Il submit" said Mr.. Llndsbury,
that arguments between the ques-
toner and the witness are unseen
~
The form of the question was
changed and Mr. Roberts answered
that since the formation of the stee
corporation, business men in this
country had new ideals which gov
erned them to avert destructive cons
petition.
Il believe he said. that through
the Gary dinners men In the steel
business have accomplished great re-
suits for the benefit of all by the APP
plication Of good common American
sense. Example has u great deal to
do with the affairs of this world
With j. Pierpont Morgan in mind
though not mentioning him by name
Chairman Stanley asked
rs there in the financial world to-
day. a man of infinite power and vast
interests whose example is regarded
in way as the law by big business
menY''
NO." replied Mr. Roberts. II think
there are certain ideals of co-opera-
ton which govern us all, ideals that
may be personifled in certain in
dividuals.
rs there such an individual In
America p asked Mr.. stanley
Yes. | think So,
Where does he reside"
II think his name is legion. AT
least that is the hope for the future
of this country. If we destroy in
dIviduals, we surely Will get into
trouble
who is the example in the steel
Industry"
Il think no one man particularly
rs there not one man. Mr.. STAN
ley continued, whose example busi.
ness men of the nation follow, be-
pausa ne htp .f ,,,,1
ern conditions. his touch with poten-
tates. the railroads of the nation, the
steel making business. the establish
ment of banks and who cannot only
frame business conditions, but change
them by the mere press of button? p
II suppose | have in mind you
mean" Mr.. Roberts smilingly an
swered. whatever he may accomplish
for the good of the government and
upholding of the business interests oi
the country he does by reason of his
qualities and his ideals. II Is not be-
cause of his personality and name. II
Is the ideal which he represents that
makes the country what ii is"
Mr.. Roberts testified that he was
a director of the United States Steel
corporation and of the Pennsylvania
railroad which he said owned stock
In tho Cambria and Pennsylvania
steel companies and gave orders for
rails to the Cambria, Pennsylvania
and United States Steel. He said the
steel corporation directors who also
were directors of the railroad had
nothing to do with determining prices
for rails.
Three Pennsylvania railroad dl-
rectors. he said, also We're steel cor
poration directors. II. c. Frick, Gle
mcnt c. Griscom and himself. The
price of rails never came before the
directorate of either corporation when
he was present. he said. They were
fixed by purchasing and selling agents.
Mr. Roberts said That once before
he became n steel director he told
President McCrea of the Pennsylvania
railroad that prices quoted by the
steel corporation for rails based on
new specificatins were too high. At
his instance, Mr.. Mecrea told Mr..
Gary and the steel corporation satis-
fartorily modified its price.
Mr.. Roberts cited the bylaws of tho
steel corporation and the Pennsylvania
railroad which prohibited directors
from voting on contracts between the
two companies.