The daily banner. (Cambridge, Md.) 1897-2008, 1913-01-25
FORCED OUT BY
GARY,SAYS COREY
Former Steel President Tells
Why He Resigned.
FRICTION WAS TIE CAUSE
Reiterates Charge That Judge Gary
Knew of Pools Long Before They
Were Abolished.

"STS ApOitouSus
New York, Jan. 25.-That his resig-
lation as president of the United
States Steel corporation in 1910 was
the sequel of dispute between him
self and Judge e. H. Gary as to who
was chief in authority, and that the
finance committee of the corporation
had upheld Judge Gary, was the ad-
mission made by William E. Corey,
former president of the corporation,
on cross-examination in the govern
ment's suit to dissolve the combina-
ton under the Sherman antitrust law.
This came somewhat reluctantly
from Mr.. Corey after he had declared
that the participation of subsidiaries
of the steel corporation in pools organ
ICED for the purpose OF fixing prices
was known to Judge Gary, chairman
of the corporation, long before he gave
the orders that the pools should be
abolished.
This charge gave direct contradic-
ton to that of Chairman Gary before
tho Stanley steel investigating commit
tee that, with the exception of the
rail combination" which he said did
not fix prices, he had no knowledge OF
the existence Of pools and had ordered
them abolished as soon as they had
been brought to his attention. This
was in the latter part Of 1904.
Mr.. Corey swore that Judge Gary
knew all about the pools all the time,
because he attended some of the meet
ihgs." Although a meeting OF the
plate and structural pool 'fn 1902 or
1908" was the only one at which he
could distinctly remember that Judge
Gary was present, Mr.. Corey said he
was sure he was present at other meet
ings.
Are you sure that Judge Gary was
present at the structural melting" ask
ed c. A. Severance, attorney for the
corporation.
Absolutely" answered Mr.. Corey.
Unable to shake the testimony OF
the witness, Mr.. Severance held con-
ference with associate counsel.
. "You left the steel corporation with
some Ill feeling toward Judge Gary,
didn't you?" asked Mr.. Severance.
I'VE were not always in accord, but
don't think 1t was Ill feeling" re-
piled the witness.
There was some question as to who
nafs the chief executives there
"There was"
"And 1t was put up to the finance
committee and the committee support.
ed Judge Gary, did it not?"
That's about right" Mr.. Corey said
Mr.. Corey could not be induced to
alter his previous testimony that the
Tennessee Coal and Iron company was
q steel rail competitor of the stee'
corporation before it was taken over
by the corporation during the panic OF
1907. He said he had opposed its &C
QUESTION on the ground that the price
was too high. John w. Gates and 9TH
ers, who controlled 1t, had placed
nuisance value" on the properties, he
said, and it would have continued a
competitor of the corporation If 1t had
not been taken over.
Mr.. Corey also persisted in his opin-
ion that the price paid by the steel
corporation for the lease Of the Great
Northern ore lands was too high, al
though counsel for the Great Northern
ore trustees, defendants in the suit,
made every effort to confute his testi-
mony.
Mr.. Corey was asked concerning the
steel rail pool among American manu-
facturers, including the corporation.
He said that the pool has a hang
over" from a pool that existed before
the corporation was organized. 1t was
broken up. he said, in 1904 or 1905.
Thereafter, Mr.. Corey testified, some
other manufacturers wanted to raise
the price on several occasions, but the
steel corporation declined.