The Birmingham age-herald., 1922-06-07

Morgan,
 c. And as vacancies occur in the board you designate the directors, in consultation with Mir, Morgan. do you not2 4. Not any more than the other members of the finance committee.
 e. Now. don't you know, Judge Gary, in point of fact. that these di- rectors are really named by you and Mir Morgan, or by MT. Morgan after consulting you? A. l do not. That is not fact.
 e. Have you ever named director without the assent of J. P. Morgan & Go, and if so, give us his name2 A. do not think 1 have-or without the assent of every other member of the finance committee.
 The members of the finance com mittee of the Steel Corporation are: Judge Gary. J. P. Morgan, George r. Baker, Richard V. Lindabury, Per cival Roberts, Jr, J. A. Farrell and William J. Hilbert. MT. Untermyer pursued his inquiry into the Morgan influence in the corporation.
 c. And you consult these other gem tlemen on the finance committed? A. Yes.
 Gary and Morgan Disagreed
 c. But you pick them out, and then you consult them? A. Now, may l add something else? I want to add this; During the last year Mir. Morgan and I did not agree with respect to filling vacancies in the directors.
 Judge Gary at this point sought to explain that in the early days of the Steel Corporation he and the late |. Pierpont Morgan frequently dis agreed on matters of policy and ap- pointments and that the elder Nor gan frequently yielded.
 But if you had not been able to convince him his judgement would have had to prevail?" Mir. Untermyer suggested
 T am not willing to admit that said Judge Gary.
 Q. You have not had such a case. have you2 A. have attempted to make the statement that MT. Morgan and Mir. Morgans firm, from a very early period of our history, had never been nor attempted to be, the domi- hating factor in the control and man agement of the corporation.
 Gary Offers to Illustrate
 c. That is very general state ment, and 1t depends a good deal upon what has been done, Judge Gary. A. could give you a good many Illus trations.
 o. Could you give me any iilustra- tion in which anything has ever been finally done against the judgment and wishes of that firm? A. can. against the judgment. but not against the wishes. because MT. Morgan and his firm have always agreed with whatever has been done.
 Q. If Mir Morgan is not the domi hating factor in that United States Steel Corporation, who on earth is? A. Well. I will say the finance com mittee. and it has always been-the finance committee.
 Q. Never mind about the finance committee. A. Well, that anwers your question.
 C. 1t does in way, but that is the way in which those questions are all ways answered. A. Excuse me, I did not mean to do that I did not 'mean to evade.
 c. You know perfectly we'll to say that the board does this and the board does that when corporation has to be dominated by some overpowering individuality A. I have never known any board nor any finance committee that thought was like our finance committee in respect to the manage ment of the affairs of the corpora tion.
 Q. How often does 1t meet7 4. Every week.
 Q. One of your men is from Phila- delphia. you say? A. Yes.
 Q. MT. Roberts Is Philadelphia man? 4. MT. Roberts is a Philadel- phia man.
 Q. Are the finance committee mem- bers salaried men? A. No; they are not.
 Q. They get salaries In some other direction. don't they? A. No.
 .. In some capacity? A. No. MT. Filbert-
 Q. You are salaried. the comptroller is salaried, MT. Lindabury Is salaried :, A. Four of us.
 Q. Four out of seven7 A. Yes. all but MT. Morgan, MT. Baker and MT. Roberts
 Q. understand. I was asking you about this question of structural steel, what proportion of the structural steel or the country does your com pany make? A. I cannot give you these figures, but I think about a third.
 c. Do you know who your com petftors are in structural steel. all the companies make 1t more or less7 A. More or less. l think others have testified to that. don't know. If seems to me l saw something of if fin the newspapers. For a good many years We have not known so very much ofthe business of independents.
 Gentlemen's Agreement In
 .. You mean since the gentlemen's agreement diners separatedo That whole question has been gone over Tn the courts, you know.
 e., l say since those luncheons ar oinhers ended you say you have not known so much. Is that the period you refer to? A. I vii sayi that if you referred to the dinners.
 z. Since then you haven't substi- tuted luncheons or breakfasts? A. There has been nothing substituted as far as l know.
 2. Having. as you say differen- tiai in your favor of s3 a ton these Independents are at your mercy. aren't they? A. 1 don't think so.
 V. NOW. isn't it a fact-suppose instead or this being a kind of els- mosynary despotism. if you please. or control, 1t were a ruthless one and suppose you chose to exterminate your competitors by foregoing this sS or so ton differential, 1t would not take long to do so, would ite A. do not think that is practical question.
 .. You don't think 1t proper ques- tlon! A. Practical question because
 2, But that is a logical question. If you have sS a ton or s5 a ton in costs over your competitors and vou the capacity to supply the market why then he is living by your grace and favor isn't he? A. No. l don't think so.
 e. You don't think so? A. No. I do not.
 Q. Then you do not believe in arithmetic? A. I think l do.
 Q. Take for instance, the time when you had only 45 per cent of your capacity employed, in which vou