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Show PROTEST MADE LAWYER FOR THE STEEL MEN Member of House Committee Puts Pointed Question to Director of the Great Corporation. POWER OF MORGAN IS TOUCHED UPON "Gary Dinners" Again Figure Fig-ure in Hearing; Connection Connec-tion Between Railroads and Rail Makers. WASHINGTON", June 9. The first clash between the house committee on the inquiry into the United Slates Steel corporation and counsel for tho corporation, cor-poration, ft. V. Lindbury, occurred todaj', when Pereival .Roberts, Jr., a director, was under examination. Mr. Roberts and former Vice President Presi-dent James Gayley of the corporation were witnesses, both testifying that agreements as to parceling of out' put were made between steel manufacturers manufac-turers before the corporation was formed. The committoc sought to show that through the "Gary dinners" tho prices of steel products 'were maintained and competition curtailed as effectively as they were prior to the corporation's formation, by gentlemen's, agreements, made despite the Sherman anti-trust law. Much of the examination of Mr. Roberts dealt with an academic discussion discus-sion of J. P. Morman's industrial potentiality, po-tentiality, i hough Morgan -s name was largely avoided, and with the system of interlocking directorates of the corporation and other big industrial enterprises. Mr. Bear s Question. "Was it the same spirit, of philanthropy philan-thropy that guided independent steel manufacturers to make agreements before be-fore the organization ot the United States Steel corporation," Jieprcscnta-rivo Jieprcscnta-rivo Bcnl -asked '.Director Roberts, "as prompted the steel corporation to save the nation in .1907 by taking over the Tennossee Coal and Iron compan'?-"' Mr. Roberts was replying, that he, did not believe philanthropy entered into business, when Attorney Lindbury protested against the question. "I submit," said Mr, Lindbury, "that arguments between the questioner ques-tioner nnd the witness arc unseemly." The form of the question was changed, and Mr. Roberts answered that since the formation f the stool corporation business men in this country coun-try had new ideals, which governed them to avert destructive competition. "T believe," he said, "that through the Gary dinners men in the steel business busi-ness have accomplished great rosults for the benefit ot all by the application applica-tion of good common American sense.-Example sense.-Example lias a great, deal to do with the affairs of this world." Potential Influence of Morgan. With J. P. Morgan in mind, though not mentioning him by name, Chairman Chair-man Stanley asked: "Ts there in the fiuaucial world today to-day a man of infinite power and vast interests whose example is regarded in a way as the law by big business men)" "No," replied Mr. Roberts. "I think ther are certain ideals of cooperation co-operation which govern us all, ideals that may be personified in certain individuals." in-dividuals." "Is t hero such an individual in America?" asked Mr. Stanley. "Yes, J think so." "Where does he reside?" "f think his name is legion. At least that is the hope for the future of this country. If we destroy individuals indi-viduals we surely will get into trouble. " "Who is tho example iu the steel industry in-dustry ? ' ' "I think no one man particularly." "Is there not one man, " Stanley continued, con-tinued, "whoso example business men of tho nation follow, because of his immense grasp of modern conditions, his touch with potentates, the railroads of the nation, tho steel-making business, the establishment of ban Irs and who can not only frame business conditions, but; change them by the mere press ot a button?" "7 suppose I have iu mind whom you mean," Mr. Roberts answered smilingly. smiling-ly. "What he may accomplish for tho good of the government and upholding the business interests of the country, he does by reason of his qualities and his ideals. It is not because of his personality and nnmo. It, is tho ideal which he represents that, makes the country- what it is." Matter of Steel Rails. Mr. Roberts testified that he was a director of the United States Steel corporation and of tho Pennsylvania railroad, which ho en id owned stock in the Cambria aud Pennsylvania Steel companies and .gave orders for rails to the Cambria, Pennsylvania and United States Steel companies, fie said the steel corporation directors, who also were directors of the railroad, rail-road, had nothing to do with determining determin-ing prices for rails. Three Pennsylvania railroad directors, direc-tors, he said, also wore, steel corporation corpora-tion directors, II. C. Frick, Clement O. Griscom and himself. The price of rails never came before the directorate of either corporation when ho was present, pres-ent, he said. They were fixed by pur chiming ami selling agents. Mr. Roberts said that once, before he became a steel director, ho told Presi dent McCroa of the Pennsylvania railroad rail-road that prices quoted by the steel Continued on Pago Two. PROTEST I0E BY THE TRUST LAWYER Pointed Question Asked at . House Inquiry Into Steel Corporation Affairs. Continued From Pago One. corporation for rails based on new spec-ificalions spec-ificalions were too high. At his in-stance in-stance Mr. MeCroa iold llr. Gary, and the steel corporation satisfactorily modified its price. Mr. Roberts cited the by-laws of the steel corporation and the Pennsylvania railroad, which prohibited directors from voliner on contracts between the two companies. The committee will resume its inquiry next Tuesday. Many inquiries arc rcjichinjr the committee ns to when Mr. 'Morpnii is to be summoned as n witness. wit-ness. Chairman Stanley and other members mem-bers decline lo commit themselves, but it is reported Mv. Morgan will be subpoenaed sub-poenaed and nsked many questions relating re-lating to his interests in steel and railroads, rail-roads, his banking connections and influences in-fluences and his part in tho organization organiza-tion of the United States Steel corporation cor-poration and its absorption of tho Tennessee Ten-nessee Conl & Iron company during tho 1007 panic. |