Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1913-05-29
STEEL MEN NEVER
PLANNED A TRUST
Judge Gary Exoneretcs Him.
self, Late J. P. Morgan
and Others.
DETAILS The CONSOLIDATION
Organizers Were Actasted by
Desire to Obtain Rounded.
Out, Self Contained
Proposition.
DETAILS The CONSOLIDATION


Gary. chairman Of the United States
Steel corporation. declared on the w.t.
ness stard to-day that neither he, the
late J. p. Morgan nor anybody else ever
concerned In tho course OF the negotta-
lions eor the organization OF the corpora
ton, had discussed the question of OBJ
taining monopoly in the steel industry
or OF suppressing competition. Judge
Gary was testifying In the government
suit to dissolve the corporation under the
sherman antitrust law.
The witness detailed the formation Of
the corporation and endeavored to show
that the sole purpose that actuated its
organizers was to obtain "a rounded
out" self-contained proposition, complete
in every phase of manufacture from the
mining of ore TO the production OF diver
sifed finished products IN the mills, with
the ability to reduce costs to the mos,
economical basis and particularly to de-
velop an export trade.
"Our effort" he said emphatically, has
been to extend trade and to fosteA COM
petition, and we have done that"
Judge Gary denied that the steel
corporation had been over-capitalizei.
The various properties acquired. he
said. were all worth the price paid
for them" while the ore properties Of
the Lake Superior consolidated iron
mines, John D. Rockefellers concern.
We're obtained "it has since been
proved, at a very low price"
FEDERAL NOT A MONOPOLY.
He denied that the Federal Steel
company. the nucleus around which
the corporation was formed, was
monopoly in itself. as alleged by the
government, and called attention to
the fact that when the Federal AMI
some of the other steel companies, now
subsidiaries of the corporation, were
investigated by the industrial commits
sion of Congress in 1899, no complaint
was entered against them by the de-
partment of justice or any other
branch of the government
IF all these subsidiaries were mo-
nopolies when taken over, as alleged,
were you aware of it?" asked r. "
Lindabury, the corporation attorney.
Il was not. l had personal knowledge
that the companies that went into the
American Steel and Wire company had
been in competition but did not regard It
as a monopoly. We did not take over any
OF these companies on the theory that they
were monoplies or that through their in
strumentality we could restrain trade.
The organization OF the corporation was
precipitated, Judge Gary said, by the de-
sire of the Federal Steel company, j
p Morgan fotation. to perfect round
ed-out' organization. This opportunity
came when Andrew Carnegie offered to
sell the Carnegie Steel company. Tho
Federal had previously refused several
proffers of the Carnegie Steel company
and had attempted to raise $4o.oo0o0o to
build new plants OF It's own. This attempt
was abandoned, he said, when Charles M
Sohwab outlined to Mr.. Morgan the ad-
vantages OF acquiring thsn existing prop
erty Mr.. Morgan was Impressed and
called in the directors Of the Federal
Steel company.
| DESCRIBES DIRECTORS MDETING.
the directors q: Mr Morgan's off,ce and
laid emphasis on the nnanciers desire
| 70 know whether II was g good business
proposition" and that nothing conoernins;
| the suppression OF competition was said.
At this meeting. the acquisition OF other
properties was proposed and adopted ana
Judge Gary described how each htted In
to the plan of "self-contained orsani-
zation" Mono OF them. he said. ware
natural competitors"
Was the alleged throat Of Andrew
Carne.fe to go into the steel tube bus,-
ness discussed or alluded TO by NJ. Nor
gan ur 1Nr one elso7'
! 1T said the wftnese-
Judp laid that he would not
dony I:peution eIiated to some
| extent Eceu the Carnegie company
and th, nois Steel company. sub
| sidlarS ~ the Federal Steel company
! THE Carnegie company did sell raila
in the Chicago district lower than the
Illinois," he testified, and could DO what
they came near doing at one umo. forc-
Ing the Illinois company Into the handc
OF receiver, and the Illinois could reSAl-
late But don't think that was the Kind
| OF competition mat Hhould be considered.
Each company had natural territory OF
it's own and they were not In competi-
tion ir the bulk OF their products. They
tapped over. but the competition was an
| cidpntal"