New-York tribune., 1922-06-02
four Presidents Testify
:, lockwood Hearing;
say PrbIic viii Benefit
Through Lower Prices
Deny Morgan a Co.
Are Back of Action
Grace. Downs, Topping
and Dinkcy Admit L. ;.
STEEL Controls Industry

..a, ~ four of the steel com
..,oei.ted with the proposed
I..v,,,, ~" Bethlehem and siA-eom-
~,,s,rs. tho latter o' w'ieh vas
~ ,,',.,nnst,d ls'i night in q three
..-,,rv combine. were put on the W.T.
.-' - .,,,s before tho Lockwood com
y. ~. (, Civ Hall yesterday for cues
-. ri,s respect to the origin
w.. w.. and probable effect Of tho pro
,.,.sd eombine' ..u
:. -, eourss Of the examination con-
,..,,s bv Samuel Untermyer. the com.
go, chief counsel, It WAS alleged
a., y, indepsnden; steel companies
-. country we're able TO continue in
80. only through the grace OF the
,,.i,.s states sesl Corporation The
.....r,,ion. it was asserted, was en-
49, "a maintain TINS whiphand in the
.,su,,rv because 4 could supply steel
tmga ton cheaper than other con-
,,r,, through the ownership Of rail
-, coal and ore mines and its su-
~rior access 70 raw materials.
IN The bass Of this testimony
,,i,g shown that the corporation :
..,,,.st advantage lies in its lines OF
transportation Mr Untermyer askeo
n industries Of this kind should not DC
.,ioiped from owning railways as ran
,osSs are prohibited from owning MIN.
..y ersperties While one o. the steel
rsr no. thought IT would be helpful 20
is,sr competition others took another
new.
say Mergers Will Benefit Public
All the witnesses assured the com
ri,,se that the mergers were projected
,or TIE purposes Of economy and would
10 beneficial 20 the public but there
vas no indication Just how these saw
iry, we're to be effected except through
sss reduction Of sales forces. Nh I'm
tetnyer. however. held that the combi-
nations would cut out competition. He
made the strong intimation, also. that
they could not have proceeded except
viii the approval of J. P Morgan &
O., which. n vas declared. dominates
~ United Stfes Steel CoTpc . ia
fhe question Of court action tha,
rsht arise 10 forestall the mergers
". referred - b. the council when
efi Of the witnesses said he could not
vttuee the figures showing the basis
n ths proposed combinations.
We do not want 70 wait until the
vccsedings are concluded. protested
NJ Urtermyer. Neither the commit
's nor the officers OF justice will
ssht 10 lock The stable door after the
hotes have escaped This idea of en-
ish;nT mergers after they have taken
place is little too late Please do
rot understand me- as assuming that
nis is a transaction that should be
'nloirtd. ] have no opinion on the
lusjett a. yet, IN the absence Of the
iscts'
II, counsel drew special attention
ne grest activity in Lsckswanna
"'tks between March I and May 20.
sa'e the merger with the Bethlehem
t'npany was proceeding. shares hav-
70 Jumped from Sf7 10 Ss1 within that
rfod Mr. Untermyer sought % show
rs' this was due 70 the operations Of
hiiotrs. which was denied BY wit
ht's,t. who asserted that the merger
VS. made public on May s.
one other noteworthy fact disclosed
! me hearing was the withdrawal Of
m' Bethlehem Steel Company from
tssiy all the trade associations IN
ssNa u held membership. II was re-
oisd that u was this company's con-
asr'lpn with these organizations that
,a'sphsd in the grilling Of Eugene G..
Hies' its president. before the COM
nl'l'e last year Mr. Grace said yes
.lasT, however, that tho company's
s'ssr' seton was due 20 the Federal
'''slon IN tho hardwood lumber case.
sharp Tits Mark Questioning
ias Examination was marked BY
w sharp tits between counsel and
el'ssses' and, IN the case OF MT.
s.ee presented the situation Of the
r'.osnt Of tho Bethlehem steel Com
~! oeing quizzod By the man said TO
1osntlnos5 on pss, tour