New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-30
GARY GIVES REASONS
FOR STEEL CORPORATION
Economic Need to Prevent
SIashing Of Prices, He Says,
Was the Main Condition.
COMPETITION SIDE ISSUE
Whole Thought of Morgan and
Other Capitalists Was for
the Aggrandizement of
United States.

The story Of Judge Ebert II. Gary and
the formation of the United States Steel
Corporation was continued yesterday ar
the hearing OF the suit for the dissolution
OF the corporation. Although the greater
portion Of his testimony was designed IN
show the organizations policy as regards
unfair competition, rebates and the nx
ing of prices. Judge Gary also bore Wit
ness to the gradual assumption OF control
BY the finance committee. OF which he 4,
chairman as well as being, in his own
words, executive officer OF the corpora.
ton"
The question OF competition, which the
corporation is accused by the government
of sitting. was again inquired into in de-
tail in the direct examination OF the wit
ness conducted by Richard V. Lindabury.
counsel fer the defence Judge Gary in.
sisted that the organizers OF the CORPORA
ton did not select the companies which
arc now it's subsidiaries because they we're
competitors. but tried instead 10 select
those needed to round out a scheme OF
general effectiveness IN production.
"Of course there was some competi.
ton" Judge Gary said. for II was not
possible TO select plants which did not
compete in some ways. But It was accl-
dental and slight"
The part which the firm Of J. p Nor
gan G. Co. played in the organization OF
the combine was an important one, the
witness said; in fact. the plan OF the Fed
eral Steel Company for an amalgamstion
OF interests would rot have succeeded
otherwise
The Morgan interests were allowed 10
advertise that they would finance the
project" Judge Gary said. They had
the right 10 determine who should be d.
rectors. but consulted constantly with the
officers of the Federal Steel over details.
The Federal Steel needed the financial
strength Of TIE firm 10 accomplish what
was accomplished, and could not have
succeeded otherwise That is we'll under
STOOD
After detailing the gradual change
which took place in the operation Of the
| corporation from board ot directors OF
twenty four members who did not always
agree on essential points until the direc-
ton Of the policies Of the corporation was
placed in the hands OF the finance COM
mittee. with himself as chairman, Judge
Gary declared himself on some u those
policies.
The corporation has always favored
stability OF business "a opposed to de-
moralization. as far as 10 legiumstely
could do so. Its effort has been to re-
duce its prices. If and when II could. to
point where II believed they were req
sonable. and so reasonable 70 rs CUSTOM
ers n has endeavored so far as i couh
10 prevent an unreasonable increase IN
| prices. and from time to time IL has been
decided factor in keeping prices down
TO fair and Just level"
The policies Of the corporation have
tended TO develop trade, 10 extend trade.
20 increase trade 10 foster competition
70 prevent monopoly. 10 prevent wrong
and imposition OF any kind. I want 10
say with emphasis that the policy OF THIS
corporation has been 10 manage Its al
fairs so as 70 make II certain It did NJ
wrong or injury to any person or any
other interest
one OF the ways in which the nlsh
standards OF business were msintainea'
according 20 Judge Gary, vas by pFese''
ing the schedule OF wages for us en-
ployes even during the panic Of 1874 max
ing only one reduction. and that for
short time. in 1901. Another was by issu-
ing d decree against all acceptance o. ~
bates on freight rates.
All customers and competitors nave
been fairly treated he sad, and the gov
ernment's contention that plants had oesn
bought and dismanted as one me'no'
Of sitting competition was another una"
accusation. he said.
Judge Gary's testimony will De con-
tinued Monday morning