The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-06-08
BY Associated Press.

washington, June Judge Ebert
r Gary, executive head of the United
States Steel Corporation, told the house
committee of inquiry today his version
of the formation of that enterprise
which contradicted the testimony of
! Jno. w. Gates that threats of Andrew
Carnegie to build rival railroads and
tube works had induced Pierpont Nor
gan to institute negotiations culminat-
ing in the gigantic steel combination.
Gary declared If Roosevelt had not
approved the absorption of the Ten
nessee Coal & Iron Co. by the United
States Steel Corporation he would not
have voted to consummate that deal.
Gary discussed the financial panic of
1907 when the Tennessee company was
taken over in what he claimed was an
effort to avert the failure of the New
York brokerage company of Moore &
Schley and the consequent disastrous
results in the banking world, and de-
clared that at that time no person in
terested in New York bank would do
anything to injure another for fear of
injuring himself on account of the fl
nancial frenzy then prevailing.
NO COMMENT TO MAKE.
Before the committee met, Mr.. Gary
was asked If he had any comment to
make on the report that the govern
ment had determined to review the
findings Of the bureau Of corporations,
with regard to the steel trust upon
which it was to determine whether
court proceedings should be instituted.
II have read several reports" said
Mr. Gary, which are reported to re-
fleet administration views, but l have
absolutely nothing to say concerning
them"
Testimony OF great interest to the
cities Of the Ohio and Mississippi val
- ~ 81
when it was declared that efforts were
being made to destroy water transpor-
tation for coal down the Ohio and Mis-
sissippi rivers now of great benefit to
the industries in cities along these
rivers.
Statements have been made by a
senator OF the United States who has
a personal interest in the Pittsburg
Coal & Coke Company" said Chairman
Stanley, that the Monongahela River
Company is now under the control of
the Pittsburg Coal q Coke Company;
and that there is now pending prop
osition to exchange the securities of
the United States Steel Corporation
with the inevitable result that the
Ohio river will cease to be the medium
of traffic for the carriage of this ton
mage of COAL"
Members of the committee and at
torneys for Mr.. Gary asked Chairman
Stanley to name the senator and Mr..
Stanley responded by calling to the
stand Mr.. Hall, former president of the
Pittsburg Stock Exchange.
Mr.. Hall related the history of the
two companies and said the steel cor
poration has a 25-year contract for
coal at a price that represented a loss
to the mining companies. A deal is
pending, he said, for the transfer to
a 1Nn - l..
of coal to be paid for in bonds guaran-
teed by the steel corporation.
There is no doubt in my mind" Mr..
Hall declared, that the deal means the
ultimate shipment of all coal in our
district by rail and the eradication of
water competition. Senator Oliver
agrees with this view"
Mr. Hall has offered no evidence
that we are getting control of these
companies" said Mr.. Gary.
Your contract is better than own
ership would be-" replied Mr.. Hall. TT
Is cheaper to get the coal at your price
than TO own the companies"
Mr.. Hall testified that the Pittsburg
Coal q Coke Company, known as the
ran company" in the Pittsburg coal
Held, controls the Monongahela River
Company which ships by river.
We have no thought OF acquiring
SOhNAOA VI dn interest IN elIner or these
companies" said Mr.. Gary. 1--WE have
no interest in them except this con-
tract for the purchase of a certain
amount of steam coal"
Judge Gary again today declared that
President Roosevelt and Secretary OF
State Root not only sanctioned the alb
sorption OF the Tennessee Coal & Iron
company by the steel corporation. but
heid II TO be necessary to avert wide
spread financial disaster.
Continued on Page Seven.