The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-01-30
Gary, Farrell and Other Big
Magnates Will Refute
Corey's Testimony
COUNSEL OUTLINES
PLAN OF DEFENSE
History of Organization VIII
Prove 1t Helped Build Up
Trade, Is Argument
of Attorneys

NEW YORK. Jan. ga sweeping
denial of the governments allegation
that the United States Steel corpora
ton crushed competition is to he made
by ex-Judge f. IL. Gary. James Far
rell. and other steel magnates. when
they take the stand in the corpora
TONS defense early in March.
An outline Of Judge Garys evidence
was given today by attorneys of the
Steel corporation, at the conclusion OF
the days hearing before Referee
Browne,-the special government in
vestigator in the steel inquiry. The
governments case was rested late in
the day, with reservation on the part
or Counsel Coulton, for the govern
ment, to call one more witness to-
morrow If he is able to find him.
Mr.. Severance. OF counsel TO the
steel trust, told the governments In
quisitors that ii will take him Ave
weeks at least TO whip into shape the
mass Of evidence the steel corporation
wants TO spread on the records in
REPUTATION of the charge that 1t main
tained "A combination to control trade
The steel trust will put on twenty or
more witnesses. including all the
heads of the corporation.
Gary to Tell History
Ex-Judge Gary chairman OF the
steel trusts finance committee. who
was accused hy former President VIII
liam Ellis Corey with intimate knowl-
edge ~ the pools organized by the
trust TO regulate prices. intends to go
into an exhaustive history Of the steel
Err
Gary, for one thing. will reiierate his
denial before the Stanley committee
year ago. that any pool to regulate
prices existed with his knowledge. Be-
fore the Stanley committee ne swore
that. when he learned In 1905. that
a steel rail pool had ben formed he
instantly caused IL to be broken up
This Mr.. Corey fatty challenged.
The fierce competition that reigned
in the steel trade before 1901 when
the Steel corporation was organized
will be recited by MIR. Gary, together
with the facts leading up to the alb
sorption OF the Carnegie Steel COM
pany. It's hitterest rival The acquisi-
ton OF the Carnegie company Mr.
Gary will maintain. worked to the ad-
vantage Of the Carnegie concern, and
did not In the least hurt competing
firms
Steel Trade Stimulated.
Later on. Mr.. Gary will insist other
firms showed their eagerness To come
into the corporation. so as to get the
benefit OF concentrated finances. and
the consequent upbuilding of their
plants. Mr. Gary will argue that
prices in the steel trade were stiynu-
lated. rather than depressed. after the
steel corporation was formed. and
that all steel companies made more
money than they ever did before.
In an EFFORT To back up THIS con-
tention. the steel trust heads will re-
vert to figures put in today by the
government, which shows that the
steel corporation controlled only
slightly more OF the entire output
of the country after the acquisition
of competing firms than before the
corporation was launched.
Output of Steel.
The governments efforts today
showed that in 1901 the United States
Steel corporation had an output of
approximately 100000 tons OF pig
iron, the raw rnaterial--as against g.
o00,00 for the independent. giving
the trust 43.2 of the entire output.
and the independents 56.s In the
succeeding year the percentage of
output, as between the steel trust and
the Independents. varied but little,
until last year the trusts average was
1873. as against 56.7 for the independ-
ents
While the steel corporation main,
tatns that this is an argument that
competition wr7 NOT destroyed. the
government tn,,es the ground that a
total OF nearly so per cent of the en-
tire output of the steel industry---or
any other--is enough to give the dom
inant factor the advantage, The gov
eminent attorneys insist they have
shown by witnesses that the. trust was
able. through It's powerful resources,
to fix prices and compel competitors
to live up to them, or be swallowed
up.