Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-10-27

to him.
There was fear upon the part of
the corporation that when the move
ment came publicly known the govern
ment might take steps to prevent its
consummation. In view of this. +. II.
Garry, the chairman of the executive
committee of the corporation, and II.
c Prick. a director. went To Wash
ipgtou, reaching there, Sunday morn
ling, November 4, to see the President
having previously made an appoint
lmcnt. Without fully disclosing all the
facts in regard to the Tennessee
stocks. it's ownership, the amount OF
lmoney estimated as needed TO relieve
Moore and Schley and the arrange
lments that had already been made 10
relieve the Trust Co. of America, they
represented to the President that the
only thing that would prevent a vie
ious spread of the ranic was for the
corporation to acquire the stock of
the Tennessee Go. The President re-
lcorded in a letter to the attorney gen
eral written in their presence, their
Representations. He states that said
Gary and Ericl teld him that there
was a certain business firm which
would fail if help should not be given
and that among its assets werc a
majority of the securities of the Zen
nessee 60. The firm referred to was
Undoubtedly Moore and Schley. but
lit was not true that among the as
sets of the firm were a majority of
said securities. Nor was it true that
said Sehley had among his assets 4
majority or anything approximating
it. The President further said in his
letter:
/ Nudge Gary and Mr.. Frick in
formed me that but little benefit will
come to the Steel Corporation from the
purchase
This statement to the President
was a misleading one The property
was very valuable. Next to the cor
poration the Tennessee Co. has the
largest concern. 4 competitor was
removed The corporation, i'll its re-
port to its stockholders of this pur-
lchase, said that the terms of purchase
We're satisfactory both as to price and
manner of payment; that the pur-
chase Of the property promised bene-
fit to the corporation, and that the
Tennessee property was very valuable.
THE President was not made fully
acquainted with the state of affairs
in New York relative to the trahsac-
ton, as they existed II he had been
fully advised ne would have known
that desire to stop the panic vas
not the sole moving cause but that
there was also the desire and purpose
to acquire the control Of company
tnat had recently assumed a position
of potential competition of great sig
Iiffcanee. The President, taken as he
was partially into confidence and
moved by his appreciation of the
gravity of the situation and the ucces-
sity for applying what was represent
ed to him to be the only known rem
edy stated that he did not feel it to
be his duty to prevent the transae-
ton.
THE matter then moved rapidly 10
F ,onsummation. The corporation and
it's powerful banking allies did net
advance the money or lend the bonds
If the corporation upon the Tennessee
3 stock which would have relieved
! Moore and Schley, so far as the Ten
j nessee collateral was concerned, and
which would not have exceeded S.
4
sition that nothing would relieve the
situation but the corporation taking
, over absolutely the majority of the
Tennessee stock. fhis was done, and
it acquired, also under the same
agreement additional stock. The cor
, poration exchanged for the stock its
. own bonds Ell a basis which paid pa
in cash, for stock which Mr.. Gary >
more than so cents on the dollar
while as to much OF the situation
the facts are in doubt it is certain
, that the corporation awaited itself q
: the embarrassment OF Moore ant
Schlcy at a most critical period, an,
the hammering of the Tennessee st0el
and the threatening of d general fnan
clal calamity to acquire the contro
, of a competitor. The corporation thu
greatly strengthened it's control OF thu
, iron ore supply of the country, III
predominating position in the iron ant
, steel trade of the South eliminated
, competitor and unlawfully acquired
power which is q menace to the vel
fare of the country and should be dc
q stroved."
The bill goes on To allege the formation
of Illegal pools known as the Steel PLATE
: Association. the Structural steel Assocd
ton, the Steel Rail Combination, the w Ir'
Rope Combination, the Rubber Covered
Wire Combination, the Horseshoe ManH
!. facturers' Association, the Underground
Power Gable Combination, the Weather
proof and Magnet Wire Combination The
Lead Encased Rubber Gable Combination
and the Bare Copper Wire Combination
These are alleged to have been agree
ments TO suppress competition and fiX'
prices in the commodities indicated BY
their names
Combinations other than written pools
and agreements the government charges
were entered into at various meetings
one in New York City, on Jan. II, 1911
is specified. The governments petition
says:
Under the auspices of the corporation
these interests, naturally competitive, uu
harmonized by this network of co-rea
tons and overshadowed and dominated
by the power of the corporation arisins
from its prc-eminencc in the business ant