The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1913-05-31
JUDGE CARY IS
ON STAND FOR
STEEL TRUST
Chairman Of Great Corporation Says
Question Of Obtaining Monopoly
Was Never Discussed

New York, May 2S.-Judge Ebert
II. Gary, chairman of the United
States Steel corporation ana the man
who conducted many Of the negotia-
tions which led to its organization,
declared on the witness stand today
that neither he nor the late j. p.
Morgan nor anybody else concerned
had everdiscussed during these nego-
tiations the question Of obtaining a
monopoly in the steel industry or OF
suppressing competition. Judge Gary
was testifying rs a witness for the
defense in a suit to dissolve the cor
poration under the Sherman antitrust
law.
The witness spent the entire day
in a recital of the circumstances which
led to the formation Of the corpora.
ton and endeavored to show that the
sole purpose that actuated Its organ
i2ers was to obtain "a rounded out,
self contained proposition, complete
in every phase Of manufacture, from
the mining of ore to the production
of diversified finished products in the
mills, with the ability to reduce costs
to the most economical basis"
"Our AIM" he said emphatically,
has been to extend trade ana to fos-
ter competition and We have done
that"
With equal emphasis Judge Gary
denied that the steel corporations had
been over capitalized as aneged by
the government. The various proper
ties acquired were all worth the
price that was paid for them" ne de
clared, while the ore properties Of
the Lake Superior consolidated iror
mines, John d. Rockefeller's con
Germ, were obtained, "it has since
been proved, at very low price.
AZ To Organization
He denied that the Federal Stee
company, the nucleus around which
the corporation was formed, was
monopoly in itself, as alleged by tn
government. The organization of tn
corporation was precipitated, Judg
Gary said, by the desire of the Fec
eral Steel company to perfect "roui
ded out" organization. This oppo
tunity came when Andrew Carneg
offered to sell the Carnegie Ste
company. Charles NJ. Schwab,
said, outlined to Mr.. Morgan the a
vantages of acquiring the Carneg
property. Mr.. Morgan was "impres
ed" and called in the directors OF Il
: Federal Steel company.
Judge Gary described the meetil
Of the directors at Mr.. Morgsn's {
fee and laid emphasis on the fina
: cier's desire to know whether 1t wv
: a good business proposition al
that nothing concerning the suppr'
l. sion of competition was said.
The acquisition of other properti
was proposed and adopted, and Jud
l. Gary testified how each fitted in
: the plan of a self contained orgt
= ization."
d Threat Not Mentioned
q WAS the alleged threat Of Andr
. Carnegie to go into the steel tn
" business discussed or alluded to
W Mr.. Morgan or anyone else?"
d TT was not" said the witness.
Judge Gary said that he would /
TO deny that competition existed
>. some extent between the Carne
~ company and the Illinois Steel &C
pany, a subsidiary Of the Fede
Steel company"
THE Carnegie company did
rails in the Chicago district 10y
" than the Illinois," he testified, e,
could do what they came near do
at one time-forcing the Illinois c.
pany into the hands of a receive
80 and the Illinois could retaliate.
90 But I don't think that was
!, kind Of competition that should
:. considered. Each company had
- natural territory of its own and {
a. were not in competition IN the |
~, of their products. They Tapped ,