The Birmingham age-herald., 1913-06-25
Tells Primary Objects in
Formation of Giant Cor
pOratiOn
PERSONAL VIEWS OF
PRESENT HEARINGS
How Morgan Made Gigantic Trades
Without Getting Single Scratch
of Pen in Writing-Saving
Men From Bankruptcy
BY HOLLAND

New YORK, June Z1.-lSpeCldlj uu6e
James S. Reed of Pittsburg testified in a
hearing before the special examiner III
proceedings now under way for the dis
solution of the United States Steel cor
poration that the primary purpose which
was behind the creation of this organiza-
ton was the formation Of a company
large enough and strong enough to build
up an export trade all over the world and
10 conduct its operation on such scale
as would make possible the minimum of
cost and the greatest economy of pro-
duction. In this respect the purpose has
been accomplished. The statistics of the
Reeds view, prove that.
Judge Reed testified as a competent wit
ness. AS lawyer he and his firm have
for years served as counsel for various
steel companies, and were for long time
counsel for the Carnegie Steel company.
Had it not been for other very impor-
tant occurrences that made timely news
in the past week the testimony taken be-
fore the special examiner in this case
would inevitably have attracted a great
deal of attention. Some of it goes to the
ernment and the corporation. Moreover.
the testimony, aside from it's legal aspect,
lSindles sdelights revealing the person
atty the intellectual and temperamental
qualities of many of those who were in
strumental in organizing the corporation
and who have directed its affairs since
the organization.
The hearings themselves would to a
81 knowing in
progress, stepped by chance into the large
room set apart for the hearings by the
corporation from its offices, appear to be
no more than quiet conferences or pos
sibly an examination of experts qualified
to testify upon some business matter. The
governments counsel at the head of
whom is Judge Dickinson, formerly a
cabinet officer and the counsel who have
charge of the interests of the corporation
appear to be in friendly personal rela
tions; for not at any time has there been
friction or any acrimonious outbreaks
which skillful lawyers sometimes indulge
i'll for personal or dramatic purposes. The
great intellectual force who has with con-
sunmate ability directed the Steel cor
ptration, Judge Gary, would be regarded
by stranger as an Interested chance Wis
itor at these hearings, not at any time
taking part in the proceedings excepting
when he underwent the remarkable exam
ed for the greater part of the week.
Some Interesting Testimony
AT the sessions, which lasted all through
the week which has Just ended, some very
important or at least interesting testi-
nicny was produced. The magnitude of
the operations of the corporation in the Il
Years since it's organization was set forth,
in part at least, by the comptroller of the
corporation, W. j. Filbert. Hc demon
strated that his mind is of the quality
which comprehends magnificent figures.
His memory for statistics FULLY matches
the extraordinary gift of that kind which
was possessed by the late Judge Kelley
of Pennsylvania, at one time Chairman of
the ways and means committee at Wash
ington and widely known as Pig Iron
Kelly" 1t was esteemed marvellous in
Judge Keley's day that he was able to
quote accurate statistics without referring
to the records although some of the fig
ures ran high mp into the hundreds of
thousands William Mckinley owed no
small part of his authority upon tariff
teLestions when he was a member of the
House at Washington TO an extraordinary
Inemorizing ability which made it posi-
bic to have at instant command tariff
ssatistics of all kinds. Comptroller Fill
Lert was able to inform the special eX-
aminer that the Steel corporation was
Justly entitled to its name of "a billion
Collar corporation" by reason of the fact
t,1s. 1t had already paid to its employees
approximately $1,000 900 in wages. The
magnitude of the dividends in gross was
at his tongues end and he quoted the fig
ures.
OF course, figures of this kind do not of
themselves go to the issue between the
government and the corporation, the gov
efbment claiming that the corporation Is
orear lied and operated in violation of the
Sherman law and should be dissolved. But
Comptroller Filbert's statistics and the
cheerfulness with which he narrated them
wien questioned served greatly to i'm
PRESS those who were present with the
lrarvelous efficiency which this corpora
ton has secured
Judge Reeds Testimony
Judge Reeus testimony, or some of it at
least, did go directly to the issue. He
Stated emphatically that there was no I'M
tention when the corporation was organ
ized to crush competition. lie intimated
strongly that competition naa not been
crushed nor had any attempt been made
to do that He fortified the testimony of
Judge Gary, who had stated earlier, when
occupying the witness stand, that he had
attempted gradually to bring his asso-
cates to his way of thinking. which was
that the eXpedient, the wise method, even
though purely from the business point of
view. was to recognize the healthfulness
ct honorable and fair competition. Judge
Reed went further than Judge Gary would
have permitted himself to go when he tes-
tified that the personal influence tactfully.
hut constantly, eXerted by Judge Gary
had at last brought the sntire board of
management into full agreement with
Judge Gary's view, that in the long run
the attempt to crush competition by force
and might or by indirect methods was
sure to react unfavoraby upon the men
and the corporation by whom thefattempt
was made.
One statement incidental TO the testi-
lrony given by Mr.. Reed furnished pc
c,iliar sidelignt revealing Mr.. Morgan in
an unexpected way. Andrew Carnegie