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Show STEEb TRUST CONTROLS ALL SUBSIDIARIES ' T v So Sjrs E. H. Gary. Head of That Giant Corpora- tion. i PROFITS dS ALL - GO TO GREAT TRUST aaaaaaaaajaaaaaaaaaaaa The Subsidiary Companies Have No Interest in Dirl-' dends After Declared. WASHINGTON, Jon 1. Elbrt R. Gary, chairman of tha board of director direct-or of tha United Stat Steal corporation, corpora-tion, today flatly denied any knowledge of tha ptopoaad formation of a comM-natton comM-natton to control tha itaal trad of tha wosld. Mr. Oary appeared before th bona commltba lnTeatl gating tha "atael trnat" and declared that ho had com to Washington, to tU frankly all bo know of th big cot potation. Th disclaimer a to tha world wide combination wa called out by a state- IT ' " ! i i Jill annannnaananananaaam -,-- i .rXrceB X. K. XSJVR.V. r MaSf s a- eaeviw .1 ment by Chairman Stanley that Mr. Gary waa accredited with being the directing di-recting gnniua at sue a m Xaraat.'- -Mr. rjtanley intimated that these reports had had much to do with tha inquiry started) by thq house of repreeentatives. Tbe examination of Mr. Gary "brought out tha fact tbst the department of commerce aad labor and ita bureau of eorporationo are not co-operating ith the Stanley committee. Mr. Stanley aslyad the witness if be knew whether a representative of the bureau of cor-poratioag cor-poratioag oa ita investigation of the sieel corporation had ever been submit ted to President Taft or former Preei dent Boosevclt. . Mr. Gary said be did not. ' . Whea Chairman Stanley called the committee to order there were alao present in response to officinl summon Normsn B. Ream, Perrival Roberts, Jamea-Daly and W. B. Dickson of the directorate of thai ateel corporation. Whether all would be examined today, Chairman Stanler would not say. Mr. Gary and hia businesa associates arrived ar-rived ia Washington early, prepared to remain until the seommittee could con-elude con-elude ita business with them. The committee of Inquiry had ita full membership present todav, Martin W. Littleton of New York, who was absent when John W. Galea returned laat week. ' . w Control Is Complete. ' "There is not any doubt, Mr Gary told tha committee today, '"that the United State corporation, as the owner of most of tbe stock of the; subaidiary companies ultimately controls thoas subsidiary sub-sidiary companies, including their management man-agement and conduct. " Asked if the Carnegie Steel company com-pany now compete, with other aubsidi-ary aubsidi-ary companies ia the steel corporation. Mr. 0ary continued: "I should say it doea, putting my in terpretation a, tbe word. 1 came to be frank and give yon the exact facta that you may put your own construction on them. "The subsidiary companiee have their owa directors and officers and have the right. to act independently, but as the steel corporation owns the seeun tie, if the conduct of a slfbsidary com pany waa antagoniatie in any way it would be a question of time when the adminiatartion of that subsidiary com panv would be changed." " You mean the parent company would control the policies of any sub-sidarv sub-sidarv company t ' ' "It might not for tha moment, or the month, hut when the time to elect officer, arrived, it would." Would Exercise Recall. "It would exercise the recall, as it were!" asked Representative Brantley of Georgia. "Yea, yon might put.it that way," Mr. Garv answered. "Are the profits of on subsidiary concern measured aa the profits of all f That ia, doea tb parent company com-pany distribute tba dividend of all!" Cbairmaa Stanley asked. "Th earning of tb subsidary companies." Mr, Gary answered, "whenever dividends are declared. 5o into the treasury of the I'aitad Kates Steel corporation. That corporation, cor-poration, being the owner of tba divi deads, of course distribute them aa it aaea it. Tha aubidiry eampaniea hav ao interest in tha dividends after af-ter they are declared.'1 "Who ehooeee th officers of th subsidiary sub-sidiary companies!" "Of course their boards of directors choose them, but aeverthelesa a sug geetioa from the parcel company as you call it. would b recognized. I Mr. Gary aaid ka waa chairman of tba board of directors, chairman of the finance eownitteja and chief ex ecu tiva officer of the steel eorporstioa abd 7 T (Continued oa page 10.) STEEL TRUST (fontinued from page 1.) a member of the board of director in the subsidiary companies, surh aa the American Bridjre company, American Steel company, American Sheet and Tin plate company and others. Ready UT Turniau Tnronnatlon. Mr. Oary declared he would furnish all the farts and figures the committee wanted concerning fhe affairs if the I'nlted Htatea Hteei corporation and Ms subsidiary companies. "AH that vou need to do Is to request re-quest what vou want," he said, "and e will furnish' In We will stand or fall on our record." He declared the bureau or corporations, the report of which the committee has been endeavoring to get from Kocretary Xagel. with the consent of the president, presi-dent, baa been Invstlgatlng the steel ; corporation for flte-or six years. "The government' Investigation through that so-rr'-e haa been most thorough thor-ough and exhaustive." ssid Mr., Oary. "The bureau of corporations muat have a house full of facts. It has cost the steel corporation hundreds of thousands of dollars to comply with the requests of that bureau for Information and sta-llsth sta-llsth s." VI. a. !... A.trewl Ia ths tiattil of the American Iron and steel msmuie. Mr. larv explained that It waa an organisation or-ganisation of Iron and steel men which met to discuss matters in which steel men were Interested. Papers Represented. Mr. Stanley asked about the Oary dinners din-ners to steel men in New York and whether the prss was admitted to them. Mr. Oary 'said the trade papers were re pre sen led. "Is It not a fact that the AmeHcan Iron and ateel Institute la an Interna- tlonal organisation seeking to Interest foreign steel men in combination of business busi-ness affairs?" was asked. Mr. Oary started to reply, when Chairman Chair-man Stanley Interrupted: "I have heard," he aald. "from tim to time and have read In foreign journals snd othess that the ultimate purpose of th American Iron and steel Institute was to reach an amicable agreement among steeL men In thla and foreign countries, so that there might . be a necessary steadying of prices m the rest of tlie word similar to the steadying of steel prlcea In thla country. One of the moving cauaes whv. 1 introduced the resolutions providing for thla Inquiry was th dread that within ninety days thla Inatltute or some similar one would have effected such an aarreement. Inters atlonai Agreement Broached. "I have heard that euch an agreement was regarded aa necessary on account of the fact that the federal government was active to prevent auch agreements In this country, and that the federal congreas was liable to change the tariff schedules, both of which could only be met by an International organisation." The chairman called attention to an editorial In the London Ironmonger which said the pending International agreement was due to the "active and able management man-agement of the chairman of the board of directors of the I'nited States Steel corpora tlorf.'V He asked Mr. Gary to prepare an answer an-swer for the committee tomorrow. "Th'e statement of the chairman." said Mr. Oarv. "Is Immensely frank, and the question Is met In the same spirit. I will cive voii'all the facta In connection with that matter, and only wish you had come to my -offlc before. Had you done ao I think I could have satisfied you that you have been laboring under a misapprehension misapprehen-sion with regard to th object pf the American Iron and steel Institute and ajeo as to your fears of danger." Mr. Gary was asked about the siih-sldiary siih-sldiary com pan lea of the United Htatea Steel corporation and whether they had been conapetlng and Independent companies com-panies before the organisation of the steel corporation and afterward. Aeked About Federal SteeL ' He was. asked particularly concerning the Federal Steel company, a holding company, which waa taken over by the I'nlted State Steel corporation, ne said : he had been th president of th Federal Steel company and was now a director of It, as a subsidiary company. "Was "not that company a holding concern con-cern much the same aa th United States Steel corporation afterward became?" he waa asked. Was, it ' Ur flmrv renlied with a smile. "The I'nited States tSteel corporation corpor-ation was fashioned after tJ,e Federal Steel company." "Are you a director of the Tennessee , Coal and : Iron company?'' aked the chairman. . , "Yets air. ' "Waa It sn Independent concern prior to Ita absorption by the ateel corporation? corpora-tion? ' "It was Independent of all other companies." com-panies." Mr. Gary replied, "but It was quite dependent so far as getting a livelihood live-lihood ta concerned." . "The committee has been very much Impressed with the truth of that statement," state-ment," Mr. Stanley said. |