Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-02-28
Ensrmsus Prslit secured Fer Organ.
,sins csrperssio. certrels % PEI
Cent 81 Output and Al orr Lands
Gary Diedsrs. at Which asntls-
nsn's Agreement 10 Rssehsd.

kAhSeIAoChAnS UlIoCSOIS IN V0I1OuS COIL.
fpanies. It also tends to contradict
lsome Of the testimony given by steel
rrust officials
4! Some Startling. Figures.
Some Of the figures dealt with In the
IL p. Morgan & CO., received approxi-
Organising the big steel combine, and
the first nine years Of its existence
!were more than billion dollars.
Steel corporation officials objected
Ito producing their books before the
scommittee in this city. but consented to
iplace them freely at the disposal Of an
iexpert to pc named. by the committee.
sAfr. McRae made a thorough study Of
1.-THE books and minutes. and in his re-
.port to the committee he pointed out
these salient features:
That ]. p. Morgan & Co.. heading the
Syndicate which organized the steel
corporation. received a cash profit of
$4,000 900, OF which $62, 500. 600 was for
promotion. with an additional commis-
sion OF Sc. 500, 600 for q bond conversion
scheme
That the net earnings Of the corpo-
ration 10 IA period Of nine years were
S1.Oa96S5,s s9, or an equivalent Of APP
sproximately SIS . ton on finished prod
uct. instead of $SS0,000,311 ~ claimed
sby the corporation in its report.
Controls 90 Per Gent.
That the steel corporation. contrary
to the statement made by Judge Gary
! and H. C. Frick to President Roose-
Welt In 1907 that It did not control more
than, 80, per cent Of steel properties In
: the country. controls about so per cent
OF the steel holdings.
The section OF the report dealing
with the Gary dinners" where indie
pendent as well rs corporation steel
men assembled to discuss conditions
I. in the trade. contains an analysis Of the
legal effect OF the golden rule" policy
! prepared by Anthony J. Ernest. New
York lawyer. in. which It 10 declared
that the Conventions agreed to and en-
forced would be Objectionable as re-
CARDS their enec. upon competition"
Tire 0ary Dinners.
''The Cary DINNER arrangement
saws the report. "wllereat- the so-called
independents are Influenced to reduce
their production conformably to their
estimate Of the reduction. In the de-
mand existing, and to maintain prices.
Is objectionable AZ far - 1t operates
to exclude free competition. The ar
rangement Is. designed and intended to
operate and has operated admittedly.
as to standard steel rails. altho 1t ID
claimed that the so-called independ-
ent participants can cut prices with
out fear Of penalty. except the dis
honor Of declaring In favor OF q named
price and then selling at some other
price.
ut can be no justification Of the co..
operation Of the participants IN the
Gary dinners that no penalty attaches
ito a violation Of the declarations mn-
tually exchanged. because perforce the
antitrust oct would prevent the en-
forcemsnt OF any penalty for reducing
prices or exceeding ones share OF the
business Previous pool agreements
NAV have been broken and penalties
Anfiicted by the members themselves.
4 altlo this was soon discontinued It
viii lie assumed, even II . fund had not
been deposited, that the men In the
did pool asould have paid their hnes
/ 1f this ~ assumed, It can also be IS
aimed thAt the word Of the partic-
lapants IN the Gary dinners Is ample
security for tho professions Of co-oper-
( alton In the policy almost unanimous
~ subscrfbed,sto at the dinners.
BID profits In 9Aeel.
sDnrinx the nine years from Jan. !,
1902. 70 Dec. 81, lslo." the report says.
..thA productions 3of thesccrporation IN
rnlled and 4 other finished steel
.monnted tori, s67. 1868 tons and the adj
I1ustsd net earnings fox the, same Pc
10, amountins to j1,021 ,sss.3ss or an
en,,ivaIent of Il approximately $13 per