The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-01-25
Former Head of Steel Trust
Declares Judge Knew All
About Pools
SPRINGS A SURPRISE
IN DISSOLUTION SUIT
Says He Tried to Conform to
Law But Was Overruled
by Gary and Frick
in Council

NEW YORK. Jan. 24.--An abrupt
reputation of the evidence of ex-
Judge Ebert FL. Gary, executive
head of the United States Steel cor
poration, before the Stanley commits
tee in 1911, that he was unaware o.
the existence of pools created by the
trust To control prices, was given to-
day by William Ellis Corey, in tes-
tifying before Referee Brown in the
governments suit to dissolve the
trust.
Under the fire of cross examination
by the steel trusts attorneys, Corey
calmly recalled conferences between
the steel trust executive and those or
competing concerns which Judge
Gary attended, where ironciad agree-
ments were formed as 10 charges that
! firmly bound the competing manufac-
turers Of the country. ,..
! Before the Stanley committee Judge
/ Gary insisted that he knew of no pool
fcreated by the steel makers until late
/ in 1904, and that on being acquainted
with the fact that one had been form
ed by the trust su hsidiaries. he i'm
mediate!y put a stop to it, with the
assurance that he would never COM
sent to any agreement in restraint OF
trade, and that he frowned upon the
existence of a pool. Judge Gary Sc
renely informed the Stanley inquisi-
!
always a strict observer of the law.
Gary in Conference.
AS against this Corey told Referee
i Brown that Judge Gary sat in con-
ferences with representatives of COM
peting steel concerns in 1903 and at
other times, long before Gary adj
mitted that he knew the steel pools
had been created.
Coreys bold evidence startled Mr.
( Severance, chief counsel for the steel
trust, who expected that the former
head of the trust would weaken un-
der cross-fire, and attempt to smooth
over the facts of the steel pools. and
Judge Gary's knowledge of them,
/ On top Of his disclosures as to
Judge Garys participation in the
pools, Corey. still under cross-exami-
nation spoke of the disagreements
+ between himself and Gary. prior to
1910. leading up to Coreys rcsigna-
ton from the steel corporation. Corey
wasted no words in making it plain
that ne and Gary were unable to
agree upon policies of the trusts con-
troll.
Opposed Tennessee Merger.
Mr. Severance refrained from go-
ing into the turmoil within the steel
trust that eliminated in Corey's with
drawaI, except TO bring out that Corey
Eopposed the taking over of the Ten
nessee Coal and Iron company, and
the acquisition of the Mesaha Iron
mines, owned by the Hill interests, in
the Northwest.
Asked after the hearing to tell what
crisis had finally brought about his
leaving the steel trust. Corey snapped:
It's ridiculous to ask me-
Corey confirmed the statement that
Henry c. Frick and Judge Gary had
opposed him in his idea of what the
= -t-eteeFPefatio e-~cag hit to- do. par
ticularly with reference to it's abb
! ~
and the Tennessee. Throughout his
evidence rang bitter resentment over
the strong wall of hostility put up
by Gary and Frick to Corey's attempt
to run the steel corporation along less
radical lines than they wanted.
/ Evidence Against Gary.
Mr. Severance started the outpour-
ing of evidence against Judge Gary
when he bravely tackled Corey as to
the pools
You testified here that conferences
were held at which prices were dis
cussed?" began Mr.. Severance.
THAT is true" assented Corey.
You were anxious, for yous own
part. not to do anything that could
be challenged as illegal?"
Yes, / always thought I was
rather careful"
What you did at those meetings
was to announce the price at which
you proposed to sell your products 20
Yes-,. ,@.
-..You' were advised Won hadca pes
feet right to do that 90
cur counsel SO advised u.s.
1.-The effect of the prices spoken
of at these meetings was to steady tho
trader
Yes"
Not Always Maintained.
las matter of fact the prices
were not always maintained?''
mo. we came to know at times
that competitors were selling at
lower prices"
Severance got down to the pools
on plates and structural steel.
Those pools were abandoned In
1904. or 1895. / believer" he asked.
That's my recollection responds
ed Corey.
firm in New York;"
Yes"
THE Instructions sent out by tho
Steel corporation were TO wipe out
everything that might be coftsidercd
illegai?"
letter. after we had talked 1t ever
in our executive council, that every
pool must be stopped"
What was subsequently done IN
the way of meetings of competitors
as to steel rails was what your coun~
sci advised was lawful"
Yes
Knew About Pools,
did you mean TO testify that Judg0s
Gary knew of these pools?" sag
Yes" replied Corey, raising ht0s
voice He knew OF all the pools Y
Are you sure?' fairly gasped Sew
erance. Ss
I Absolutely affirmed Corey, witt
emphasis.
Il why are you so sure2" demand4&E
the trusts lawyer, with a froWn. FsT
because MIR. Gary attended tt
meetings." was the unruffied reply. }$SS
- In his evidence the day bH60Sl&2