The Washington times., 1911-10-27

taken by Andrew Carnegie In the Car
negie Steel Company ls elucidated. John
ID. Rockefeller and John n. Rockefeller.
jr., are said both to have been promi-
rent in the consolidation.
Merely Holding Company.
II IL pointed out the United States
Steel Corporation is purely a holding
company. Its capitalization when form
ed was the vast sum OF r,4o2.846,si7.
That J. p. Morgan & Co. got In round
numbers s1so. 900 In stocks for organ-
king the combination 10 asserted. The
petition describes this as an "enor-
introduced into the language as the re-
sult Of the fling or the suit
In detail, the bill describes the infia-
ton resulting from the combination. In
Of 'i the Stock, or NI5. .coo.ooo in rouni
numbers, was water. -
Later Acquisitions.
Then follows In the bill a detailed
description of the later acquisitions oi
the combination. These included many
properties, among them the American
Bridge Company, the Lake superio,
Consolidated Iron Mines, the Bessemer
Coal Mines, the Pittsburgh Steel Conf
pany. the Union Steel Company, the
Troy steel Products Company, the grea,
Northern Ore lease. and the Tennessee
II is Clear that utmost Importance IL
attached to the taking over OF the Ten
nessee Coal and Iron property. The
story of how this was obtained, about
~ 5nss 5na Sary and q, n .s
called at the White House to convince
President Roosevelt the requirement of
the Tennessee Coal and Iron Company
- rl 80 .xIx
misled. is succinctly and graphically set
forth. The charge Is made that the
men who engineered this were guilty OF
deliberately misleading the President.
Story Of the Panic.
The story Of the panic OF 1907. the
troubles of Moore & Schley and other
phases Of the financial situation In New
York leading up to the 7 c and I deal
is given and then the petition proceeds:
There was fear upon the part of the
corporation that when the movement
became publicly known the Governmen,
might take steps to prevent Its consum.
nation. In view Of this, Z. H. Gary
the chairman Of the executive commit.
! tee Of the corporation, and II. c. Frick,
director. went to Washington, reach.
ing there Sunday morning, November
4, to see the President. having previ-
Oubly dH appointment.
| fully disclosing all the facts in regard
| to the Tennessee stock. Its ownership
the amount of money estimated as nee.
essary to relieve Moore & Schley, and
| the arrangements that had already beer
! made to relieve the Trust Company OF
! America, they represented to the Presi.
dent that the only thing that would pr
| vent a vicious spread Of the panic was
for the corporation to acquire the STOCK
| Of the Tennessee company.
THE President recor led, In a letter
to the Attorney General. written IL
! their presence. their representations. II,
| stated that said Gary and Frick tolC
| him that there was a Certain business
firm which would fai, II help shou!e
not be given, and that among It's assets
were a majority Of the securities o.
| the Tennessee Coal Company. The firm
referred to was undoub' rdly Moore q
Schley, but 1t WAS not true that among
| the assets of the firm were a ma jorit
Of said securities. Nor was It true tina
said Schley had among his assets a ma
Jority or anything approximating 1t
The President further said In his let
ter: Judge Gary and Mr.. Frick in
formed. me that but little benefit will
come to the steel corporation from th'
purchase
a misleading one. TIE property wa,