The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1913-05-31
MONOP0[Y WAS NOT
SOUGHT, SAYS GARY
DENIES EFFORT TO EFFECT
STEEL COMBINE By EITHER
HIMSELF OR MORGAN,
GIVES ORGANIZATION REASONS
States In Detail That Purpose Wa,
for Economy only-Fostering Of
Competition Was Another
Aim

New York. May 29.-Elbert H.
Gary, chairman of the United States
Steel corporation and the man who
conducted many Of the negotiations
which led to it's organization. declared
on cle witness stand that neither he
nor the late j. p. Morgan, nor any
body else concerned. had. during these
negotiations, discussed the question of
obtaining monopoly in the steel in.
dustry or of suppressing competition.
Mr. Gary was testifying as a witness
for the defense in the suit to dissolve
the corporation under the Sherman
antitrust law.
A Detailed Recital.
The witness spent the day in de.
tailed recital Of the circumstances
which led to the foundation of the
corporation and endeavored to show
that the sole purpose that actnated it's
organizers was to obey "a rounded.
out, self-contained proposition, com.
plete in every phase Of manufacture,
from the mining of ore to the produc.
ton of diversified finished products
III the mills, with the ability to reduce
costs to the most economical basis,
and particularly to develop an export
trade.
"Our effort" he said, emphatical.
ly, "has been to extend trade and to
foster competition, and we have done
that"
With equal emphasis Mr.. Gary de-.
MED that the steel corporation had
been overcapitalized. as alleged by the
government. The various properties
acquired were all worth the price
that was paid for them" He declar.
ed that the ore properties of the Lake
Superior consolidated iron mines. John
D. Rockefeller's concern, were OBJ
tanned, ut has since been proved, at
a very low figure"
No Monopoly. He Says.
| He denied that the Federal Steel
company, the nucleus around which
the corporation formed, was monop
oily in itself, as alleged by the gov.
| eminent, and recalled that when the
Federal and some Of the other steel
companies, now subsidiaries Of the
corporation, were investigated by the
industrial commission of congress In
1899, no complaint was entered
against them by the department OF
justice or any other branch of the
government.
The organization Of the corporation
was precipitated. Mr.. Gary said, by
the desire of the Federal Steel com
pany, j. P. Morgan flotation, to per
feet a roundabout organization
This opportunity came when Andrew
Carnegie offered to sell the Carnegie
Steel company. The Federal had
previously refused several proffers OF
the Carnegie Steel company and had
attempted to raise $40,000,OOO to build
new plants of its own. This attempt
was abandoned, he said when Charles
NJ. Schwab outlined to Mr.. Morgan the
advantages Of acquiring then exist
Ing property. Mr.. Morgan was "im
pressed" and called in the directors
Of the Federal Steel company.
Mr.. Gary described the meeting OF
the directors at Mr.. Morgan's office
and laid emphasis upon the financier's
desire to ascertain whether it was
a good business proposition" and
that nothing concerning the suppress
sion of competition was said. AT
this meeting the acquisition of other
properties was proposed and adopted
md Mr.. Gary described how each fit
,ed into the plan of a "self-contained
organization"