The New York herald., 1922-06-03

q regular year: and 1922 promises TO bt
a regular year. does it? A. Business
conditions just now are very good anc
improving. I would not like to present
any opinion as to the whole year, Mr.
Untermyer. You can tell as well as |.
Argument over DiRerentiaI.
Q. Judge Gary, It has been stated here
that the United States Steel Corporation
| by reason of certain factors growing
out of this consolidation, and it's grea,
strength, and the position OF it's plants
its transportation facilities, and other
matters. has a differential in it's favor
estimated at from SO to $5 a ton over
its competitors A. You mean because
of its material as compared with others:
/ don't think we have that much advan-
| tage.
!. Q. What, in your Judgment, is the ad-
vantage? / am taking all advantages
now. including cost OF delivery. A. In
my opinion SO would be the maximum.
Q. Have you ever made any figures
on 1t? A. No, we have not, so far as |
know.
| O. So that would be simply rough
estimate of IS per ton advantage over
your competitors by reason Of your
situation? A. or course there are a
good many elements in advantage, and
great variety of products
Advantage in shipping.
@. Would that include your advan-
tages in the way of transportation? A.
Yes, II would such as they are.
@. How many miles OF road have you
A. Main lines. think about fifteen hun
dred. just over Fifteen hundred miles.
O. Is not there a manifest advantage
over your competitors in your ownership
Of Interstate transportation? A. IL you
refer to the mining properties. | would
say no, Mr.. Untermyer. and ] will tell
YOU why, il you care to have It.
O. Now referring to the manufac-
tured product, there is a distinct adj
vantage? A. ] don't think so, Mr. IN
termyer
O. Then if there is no advantage
whatever in the ownership OF the trans
portation companies. there will be no OBJ
lection. would there. to divorcing them!
A. 1 think there would.
O. There would be objection? A.
think there would.
@. You think your company would OBJ
ject? A. think so.
q. In times Of great pressure you
quite realize that the control OF these
Transportation companies gives the Steel
Company the opportunity OF more
prompt deliveries and preference in all
"A. l.
O. Well, do not you understand that
that is the theory on which the mining
companies have been divorced from the
TRANSFORMATION companies that owned
them? A. I cannot answer thai at all.
OF course I have reason for my
answers
@. If there Is no advantage in the
ownership OF these transportation com
panies why are not you willing that
they should be divorced and give your
competitors whatever advantage there Is
In the equal access to these properties?
A. If you will allow me will try to tell
you briefly why. In the conduct of such
large mining and transportation busi-
ness as we do in the Northwest 1t is
essential that the very best service BE-
rendered by the railroads, and If it had
to depend upon the will and disposition
Of an independent railroad whose SER
vices were largely devoted to the gen.
eral public it is probable that the SER
vice would not be so good. Now IL that
applied with equal force to the inde-
pendent mining and manufacturing COM
panies in practice of course 1 might
have a different opinion. 1t does not,
and / do not think 1t would be allowed
il it was attempted. BY that I mean
to say / think the independent mining
panies in the Northwest have just as
good service from our railroads as we
get for our manufacture. do not think
there has ever been any discrimination
or any claim of discrimination by any
one.
@. But your competitors have to rely
upon Just the kind of outside service
that you say you fear would not be so
effective as your own service and that
you are seeking to avoid? A. In prac-
tice. no perhaps in theory.
How They Manage Railroads.
@. In practice you have to rely upon
the general service of the railroads OF
the company in transporting most of
your manufactured products. do you
not? A. We do. but. Mr.. Untermyer.
there is this difference. that our rail-
roads i'm the Northwest are all the time
sufficiently equipped and so managed
that they have capacity 20 take care
fully and promptly of all the business
that is offered. That isn't true OF the
railroads In the country generally, as
very materially. the losses have been
very heavy, because of the lack of
opportunity to transport promptly and
deliver our commodities.
Q. Then YOU are of the opinion that
your ownership of this means of trans
portation is a substantial advantage to
the steel company? A. Yes, l think
II is.
o. or which you do not care 70 de-
prive yourself--and that is so because
they are better managed and better
equipped? A. Yes. that Ia probable.
Q. Then You have a poor opinion OF
the management OF the roads OF the
country generally. have you. as COM
pared with the management of your
transportation lines? A. 7 presume my
opinion is the same as yours.
Dinkey and Topping GriIled.
Renewed investigation of the merger
OF the Midvale Steel Company with tho
Republic and the Inland followed tha
publication yesterday OF some details OF
the deal. consummated late on Thursday
afternoon. That same day both NJ.
Topping Of the Republic and Mr.. Dinkey
of the Midvale testified that no final
figures had been arrived at and that
the merger involving capital of more
than $500. 100000 was only in a tenta-
tive stage.
Mr.. Untermyer charged that while
that testimony was being given the de-
tails of tho merger verc being prepared
for the press and that Nfr. Topping and
Mr.. Dinkey were trying to trifle with
the committee. Their testimony might
be characterized more strongly" he
added
With Mr. Toppine nm the witness stand