New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-06-03

tine"
Mr.. Gary testified that the United
States Steel Corporation was capital
ired At $3.50. 0oo. 900. with $3.50 100000 IN
preferred stock and ss5O.0eo,ooo com
mon stock. he said that business N
1921. one Of the lean years. amounted
70 3sS5.t01 .5eS. and that the earnings
wert about S9i .0O0. 900. with net profits
Of ss5,g57.S o3. This he said was de-
crease Of 49, per cert IN the profts
% the year before The earnings IN
1890 we're Sl7e.6S6.seS. Mr. untsrmyeI
pointed out that with the plants OF
the company running only 45 per cent
capacity in 1921 the company made
greater percentage Of profit than the
year before, when the company did al
most twice a. much business.
Business conditions just now are
good he asserted. and improving
He said that the advantage his com
rany had over competitors was about
So n ton In the delivery Of steel 10
eustomers. and that this advantage
came IN large measure from the pos
session By the corporation Of about
500 miles Of railroad lines, OF which
they had four.
you think that with an industrial
corporation there IL any more justice IA
its owning transportation lines IN in
terstate commerce than trsnsporta-
tion company owning mining proper
tcs," asked Mr.. Untermeyer.
Il dislike % make comparisons,' re-
Piled Mr. Gary. Pressed FOR an answer
he said. u think they are justified IN
owning them
he expressed the opinion that he
would object 10 the divorce Of the
Inns from his company by any Fed
eral authority because the large bust
rc-s Of the corporation requires the
best services, which could not be ar
forAed By the lines revoted 20 the gen
eral public He thought the inde-
pendent companies got as good service
from the corporations lines as the cor
porStion did.
Cannot Squeeze Competitors
TIE output Of the steel company
was about p 600. 900 ingot tons a year
ont Of = total for the country Of about
10000 900. producing about IS per cent
Of the manufactured tonnage Of the
nation.
There are lines in which you have
. complete monopoly" asked the eoun-
sci.
aIf you call special lines a 1nonop-
oily" replied Mr.. Gary.
III you cared 20 indulge IN ruin
Gus campaign % competition" ques-
TONED the examiner. you could take
the business away from any Of the
other people with your diferentisl OF
g. TONI"
"No. we could not" replied the wit
ness. you must remember that there
il a comfy AZ least between the ma
nufacturing companies and the rail
roads and various other companies,
whereby. because 81 mutual advantages
and interests, they pstronize each
ether"
he thought the corporations surplus
~ss around $500 900 900. snd IT.
bank balance near sf25 100000. There
was about $1,000 900 in the firm OF J.
=. Morgan & Co.. for which the steel
firm got 26 percent interest.
What is the idea, Judge Gary ot
carrying vast sums Of money with pr
va.e bankers. who have TO deposit 10 In
otker banks? Don't you know you can
re; a better rate IN banker
The Judge replied that II was SUBJECT
to check
Power OF Morgan & Go.
Nr. Untermyer inquired II he didn't
think IL was o vicious practice for
grest corporation 70 place lis money
attn private bankers pointing out
t1af IL had been criticized at the time
OF the money trust investigation.
"Doesnt the Morgan firm virtually
name the directors OF the Stee Corpo-
ration" the counsel shot At the wit
ness
80. they certainly do not
NJ Untermyer, however, sought 20
.no,, In a variety Of ways that great
influence was welded IN the company
b. the banking house and that the di-
rectors were really chosen by hr. Gary
and J p. Morgan.
II think III have 70 admit, and per
hans claim, that I do more OF that than
ANYBODY else and always have, ssid
Az. Gary, las 20 who appoints the d
rectors' He later amplified this by
saving that the finance committee was
also consulted.
lie admitted that the Morgan inter
Its did control the company IN the
beginning and upon is 1fgan 1ation'
which was financed Nv the Morgan
house. but that after the Organization
the Morgan firm has never had the
influence" he declared, "or the attempt
70 influence. which you seem TO fear.
Thinks independents Safe
~ Nr. Morgan is not the dominating
factor in the United states steel Cor
poration. who Oh earth is" asked the
counsel.
sWell will say that the finance
committee IL and mas always been re
piled the witness.
He thought his company made SPOUT
ore-third Of the structural steel OF the
country
Having . diferential OF 81 ton IN
yonr favor" observed the examiner
athese independents are al your
\. mercy
u don't think So
"Supposc instead q this being
kind and eleemosynary despoiitm OF
rontrol IL we're a ruthless one, ana
.vnncss 70, chose 10 exterminate your
eomnetitors By foregoing this three or
four dollars ton dinerentlai. IL "ou'u
not take long 20 do sol
Il do not think that - prsctieAl
on.s,ior" observed Mr. Gary. III we
~utbiesslv drove the others out OF husi-
ress we would have been IN pTeciseiy
tne same position that some OF these
otber cofnpanies we're IN that were
Si,solved by the government lawsuits.
T,c,, have continued what they are
dnirs. said the witness, because 1T
vss right 10 do Il" and because '"e
had 90 DO it,
n was through the testimony 81
~ ToppinR that most Of the dis
eiosures respecting additional de-
tsils Of the three-compaDy MERGE
were brought 90 light. In pointing
out some Of the inconsistenclss pf-
tween the statement gwen olt loI
press consumption ana 1ns - "a