Evening star., 1911-06-07
VIEW OF CHAIRMAN GARY
Appears Again Before Steel Trust
Investigating Committee.
DENIES MONOPOLY Is SOUGHT
Commends Roosevelt's Course In
Tennessee Coal and Iron Com
pany's Case in 1907.

Ienneesee coal and iron case was real
constructive statesmanship,' declared
Judge Gary Of the United States Steel
Corporation before the steel trust inves-
ugating committee today.
Destructive as well as constructive7"
suggested Chairman Stanley.
"It was not destructive" insisted Judge
Of a competitor OF any consequence. We
did not want 1t to create a monopoly
OF the steel business.
THE United States Steel Company
knows that the worst thing that could
happen to 1t would be to establish a
monopoly Of the steel business Of this
country. That has been its policy
from the outset and now. controlling
less than so per cent Of the domestic
output, it is not monopoly"
These statements were brought out
in the course Of Questioning by Rep
resentative Littleton as to the now
famous acquisition Of the Tennessee
Coal and Iron Company by the steel
trust Judge Gary went over again
the details Of that transaction.
Financial Frenzy in New York.
you have no idea" he said earnest
ly. "of the financial frenzy which pos
sessed New York in that panic Of 1907.
1t would have been very easy to have
allowed that panic to get out Of
bounds and to have affected the entire
country. Every night forty or fifty Of
the leading bankers of New York
were gathered in Mr.. Morgan's library
discussing the situation. striving as
best they could to give support to the
weaker banks and prevent spread Of
panic. From day to day those men
did not know what bank would be
next attacked by a run OF depositors."
when was the pressure reIieved?"
When word was sent from Washington
that the Tennessee Coal and Iron deal
was going through" replied Judge Gary
leaning back in his chair with an involun-
tary sigh Of relief. as II he still echoed
the sentiment of that anxious hour.
acauisscence oS % the President side t ana md Attor. tor.
ney General had not been given to the
trapsaction he would have voted against
the purchase Of the Tennessee Coal and
Iron Company in the steel meeting. He
General later had filed an injunction
against the sale still greater financial
panic would have resulted.
Not Forced to Sell.
Instead of our forcing the stock
holders Of the T. c. and I. to sell their
holdings" declared Judge Cary. some
OF the T. c. and I. stockholders took ad-
vantage of the situation to compel us
to buy. We did not want to purchase
the property. as has frequently been
stated"
'"Then if you did not want to buy, and
the leading men Of the T. c. and 1. did
not want to sell. why could you not have
found other means to cure the situation?'
asked Mr. Littleton.
Schley five or six millions. but they de-
clined. l imagine that their situation
was such that the wishes of other stock
holders had to be consulted, and among
those We're the stockholders who wanted
to sell their holdings
Judge Gary was asked If it were true
that J. p Morgan & Co. dominate the
larger number of the banks and trust
companies in New York, to which he re-
Morgan personally is interested in
substantial number Of banks but he does
not control the situation. Discussing the
power exerted by Mr.. Morgan. Judge
wealth. character, courage and force
could be power for harm as we'll as for
good, but that Mr. Morgan's fairness
and his Willingness to risk his own money
gives the financial world confidence in
him.
Double Duty Imposed.
This country has come to the point"
declared Judge Gary, where there must
be cooperation between the government
and the individual But the government
must recognize the rights of the individ-
ual as well as control them. There is
just as much danger of the government
going too far as of the individual going
too far.
II do not believe in unbndied license
to the individual or to corporate or
financial power
Big Purchase Of Coal Lands.
Chairman Stanley led Off the examina-
ton of Judge Gary with a question as
to the truth Of the report published yes
terday of the purchase by the United
States Steel Company Of 1900 acres of
coal land in Pennsylvania for about $1s,-
1900. Judge Gary confirmed the re-
port. saying that the deal was made with
i'm the past two months.
1--WE are short of coking coal in that
district" he said and needed it."
Judge Gary said the company has about
10000 acres of Connellsville coal left, and
about $1,000 acres. all told. Of coal Of
that character. He. said there are mil
lions of acres of coking coal lands in
the United States still untouched. He
told of the acquisition by his company
of the Hostetter Coal Company in Penn
sylvania to the extent Of a controlling
interest.
Chairman Stanley then questioned him
about the transaction in which George L.
Whitney parted with his coal holdings
during the panic Of 1907 to the United
States Steel Company, and gave his YER
sion. which Judge Gary said was an ex-
aggerated account.
''The court passed upon that case" said
Judge Gary. land l would prefer to have
YOU take the courts ruling"
"Oh, WELL" said Mr.. Stanley. courts
sometimes
II hope" interrupted Judge Gary, that
YOU and I will never take the position
that the final decision of the courts is not
conclusive.
| "when the decision is not appealabie.
But in this matter I would like to hear
from you Also Judge Gary said he
could only speak from hearsay.
He said he had never heard that
Messrs. Frick and Mellon had q con-
| sroIlin1 interest in the MOnOnRahela Coal