Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-02-02
FRICK AND GARY
WILL TELL STORY
REPRESENTATIVES, OF CONIPAN-
les WHO LAID PLANS FOR A
COMBINATION. TO DE CALLED
BEFORE THE SENATE. 81,

WASHINGTON. Jan. 5o.-Incidental TO
the testimony before the senate commit
tee on judiciary relative to the Tennessee
Coal and Iron company absorption, Com
missioner Herbert Knox Smith. OF the bu-
resu OF corporations. told something OF in
vestigatiOns which are proceeding under
his direction in the affairs OF several great
corporations and alleged trusts
Concerning the United States Steel cor
poration. Commissioner Smith said that
The inquiry thus far was confined to an
Investigation OF prices. profits and cost OF
production. This Information is being
gathered. he said. not with view TO
prosecution. I'VE do not consider that
our duty is that in any way OF a prosecut-
ing agent" said Mr.. Smith.
Probed Standard Oil
Responding to questions by Senator Gull
berson Mr.. smith said that he had inves-
tigated the creation OF the Standard Oh
company and that all of the facts obtain
ed BY him had been published by orders OF
the president.
The sugar trust has not been prooed'
according TO Mr.. Smith. except that TINS
concern has been considered orieiy IN
connection with other work. As 10 the
tobacco trust. he, said:
I'VE are working on that now-not
from the standpoint OF the legality OF the
corporation. but Of facts connected Win
its conduct OF business.
Numerous investigations are proceed
Ing at the request Of congress Among
these Mr.. Smith mentioned the oil indus
try. lumber industry. international Har-
vestsr trust and cotton exchanges.
Many Witnesses
When the committee investigating the
Absorption OF the Tennessee Coal and
Iron company resumes its inquiry Wed
nesday. IL is expected there viii De a
number OF important witnesses examln-
ed Among these may be Judge E H
Gary and Henry c. Frick. the represen-
tatfve OF the steel corporations. who iald
the question Of merging the two concerns
before President Roosevelt. and Lewis
Cass Ledyard, who Is said to have origi-
mated the merger idea In order 70 take
Tennessee Coal and Iron stock out OF
number OF loans which were being press
ed for payment by New York banking in
situations which held them
According to testimony Of George w
Perkins. OF the firm OF ]. p Morgan &
Co. given to the committee late yes
terday and made public today, Mr.. Led
yard appears 10 have been the first to
suggest that steel corporations take over
the Tennessee concern.
Mr.. Ledyard Is described as the lawyer
Of the partnership which was In diff
Guilty over loans IL had secured on Ten
Essee Coal and Iron stock.
Thus far in the hearing before the spc-
cIal committee on judiciary this partner
ship remains nameless. but it is under
stood members OF the committee are con-
fdent they know the concern meant and
will be able to subpoena members
Perkins Hard Pressed
At the late afternoon session OF the ju-
dietary committee yesterday. Mr.. Perkins
was pressed very hard for an explanation
OF the value Of exchanging United States
Steel Corporation bonds for Tennessee
Coal and Iron stock when both were quot
ed at about the same price on the mar
. ket. He was asked TO tell the difference
Between the two securities and how the
mere Substitution OF one security for an
other relieved the situation He said:
There was very great difference. No
one dared press any security on the mar
ket at that time that there was any
question about being able to sell. We were
/. IN a panic and the worst panic that any
city or country has ever known It was
not q question whether anything was
intrinsically worth something or not. IL
was what you could do with it-what
people believed. They did not believe in
that security CTennessee Coal and Iron
stock. and they did believe in the steel
bonds Whether this belief was well
founded or whether Il was not, had moth
ing at all 20 do with peoples minds at
that moment"