New Britain herald., 1927-08-15

director of the Illinois Steel com. pany. he was called upon to takt charge of the organization of the Federal Steel company. a merger ol the Illinois and other companies It was he who first suggested the amalgamation and 1t was here for the first time he was brought in Morgan, whose financial assistance was being sought in the formation of the new company. Gary's busi- ness ability so impressed Mir. Nor gan and his associates that they insisted upon MT. Gary being made president of the Federal Steel con- pany.
 As directing head of the Federal Steel company. Mir. Gary saw the larger possibilities of the industry and had often expressed his views to MT. Morgan. The latter at first did not take to the idea advanced by Mir. Gary for great steel cor poration. However, there came a time when 1t became known that Andrew Carnegie. then the foremost man in the steel industry, was de- sirous of retiring so that he could devote the rest of his life to phil anthrophy, education and world peace.
 In Contest With Europe
 Gary wanted 10 have a steel com pany that could compete with Ger many and Great Britain which were dominating the international market. Mr. Morgan finally decided 10 give his backing to the forma- tion of a giant steel merger along the lines Gary had proposed. With the organization of the United States Steel corporation the busi- ness created by Mir. Carnegie was purchased in 1901 for 92.006.16o and in all 10 large companies were bined capital Of sS67,55o,394. T. was the biggest undertaking in the industrial world and the financial world gasped when the corpora ton announced it's plans for an author ized capital of s11oo,o00,oOo ill stock and s3O4,o0O,0oO in bonds Charles M. Schwab became presi dent and Mir. Gary chairman of the executive committee.
 The great corporation under Mir Gary's direction grew apace until il became dominant factor in the steel trade of the world with 3S for eign offices and 136 distributors in A foreign countries. Its ships sailed the seven seas. Everything about the rporation-property holdings output, money invested. dividends grew to such an extent that the United States Steel Corporation came to be regarded as greater than anything that had even been i'm agined in the industrial world At a hearing before a congressional committee in Washington Mir. Gary was quoted as saying that the assets of the corporation could not be du- plcated for $2,200,Oo0,000.
 Gary Not Surprised
 Perhaps the one man 10 whom the growth of the corporation was no surprise was Gary. It was such a great concern at it's organization that he foresaw that 1t would be subject to attack It was this fore sight that impelled him to insist upon the policy that the corporation at all times conduct itself in all dealings with competitors and with the public in such a manner that it could at any time show clean hands.
 This policy in later years enabled the corporation to emerge triumph ant in two events-the governments suit for dissolution and the steel strike-defeat in either of which, blasted the foundation upon which the corporation was built and grew The governments suit. instituted in 1912, resulted from series of congressional investigations that be- gan two or three years before. It charged the corporation with being a combination in restraint of trade and asked for it's dissolution. The litigation continued through nine years and threw threatening shadow over the steel industry in America as well as American busi- ness generally. The governments petition was denied by the United States District court in 1905, and an appeal was taken to the supreme year. It was not until March 1, 1920 that the court or last resort finally acquitted the corporation of the governments charge.
 Steel Strike Begun
 The steel strike had its inception in a resolution introduced by Will liam 7. Foster al he annual conven- ton of the American Federation of Labor at St. Paul in 1918. providing for the organization Of the steel in dustry. After that convention Sam uel Gompers sent q letter to Mir. Gary asking him to meet a commit tee to discuss questions affecting the welfare of the workers of the United States Steel Corporation. Mir Gary did not answer the letter and sub sequent attempts to have him meet committees were in vain. Threats of strike continued until the 1919 con vention of the American Federation Of Labor, when September 22 of thai year was fixed as the date for the walk out. The strike order went into effect and while the industry was hampered it was not entirely crippled. The strike was officially called off in January 1920. without one of the demands having been compiled with.
 Known as HarmOnizcr
 MT. Gary was known as d har- monizer in the steel industry. When he became a leading figure in the work there was bitter warfare among competitors and between em- ployers and employees, but he work cd constantly to bring them closer together. In all his efforts, no mat ter how great the task, he was guided by a framed motto that hung in his office; Tt can be done"