New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-08

|
OF Corporations with regard to the steer
corporation. on which 1t was to determine
whether or not prosecution should be III
stItuted.
| 1 have read several reports. 'said MI
GARY. which are said to reflect administ'a-
''on views, but have absolutely noth'"e
10 say concerning them
Inc connection OF j. Pierpont Morsa"
win the Tennessee transaction was par
,'cuiarly referred to by Mr.. l.ittleton. ana
Drought about an elaboration OF Mr.. cary
opinion Of Mr.. Morgan and Of his former
declaration that government control OIL
corporations must come.
III has been said" Mr.. Littleton asHeo'
That Mr.. Morgan owns or controls most
oil the banks in New York city. DO you
Know whether that is true?'
Il don't believe that is true" Mr.. Gary
replied. Certainly Morgan owns severai
banks in New York"
Did he control the banks in which the
Tennessee Coal and Iron stock was de-
posted during the panic to such an extent
that If he desired he could have forced the
sale Of the stock by calling all loans upon
it,"
| can answer that question.
with a potential control Of the banks In
which the stock WIS held as collateral and
with the contention that the Tennessee
Coal and Iron must be Withdrawn as
basis for loans, with knowledge OF the
basic value Of the Tennessee company.
would it have been possible for him to
have forced the sale?" Mr.. Littleton asked.
Can Do Harm as Well as Good.
why" said Mr.. Gary. ANY man OF
Morgan's wealth and strength and courage
and character can do a great deal OF harm
as well as a great deal of good in banking
circles But believe that with power and
privilege there is involved a certain re-
sponsibiity and obligation. That is one
reason why I say that this country must
come to the point. II it is to keep its place
among the progressive nations. where there
Is cooperation between the government and
the individual, where the government
while recognizing the rights Of the indivd-
ual. must exercise strict control
THE Sherman antitrust law is made
quate. and We should have additional regu-
ative legislation. Just what kind IT should
be. the committee may have a different
opinion to mine
Mr.. Littleton, returning again to concen-
tration Of wealth, asked: The government
has come more and more to the regulation
OF industry. The railroads are now almost
completely under government control. Is
| there not a danger greater than that OF
any industrial combination in the combina-
ton of bankers and trust companies which,
through controlling the money power. could
restrain ALL trade and commerce.
Il don't believe in unbridled license TO use
wealth." Mr.. Gary responded. The danger
in such situation can easily be seen"
| Mr. Gary referred to his former decla-
rations in favor of strict government super
vision. saying: Il believe It just and i'm
portant that the government should make
it certain that property and business should
be protected There is just as much dan
ger of the government going too far as OF
the individual going too far"
Would you indorse law which provided
that when a combination secured control
OF ~ per cent Of an industry the govern
ment should take over its business?" Mr..
Litteton asked
II don't believe In government ownership
or actual management under any circum-
| stances" replied Mr.. Gary
Returning to the absorption of the Ten
nessee Coal and Iron Company. Mr.. Little
] ton asked Just when that transaction re-
lieved the financial situation.
Real Constructive Statesmanship.
Just as soon as we sent back word from
Washington that President Roosevelt would
allow the deal to be made" Mr.. Gary said.
| II don't know what the committee thinks
about IL. but | myself believe that the ac-
ton OF the President In this connection was
a piece OF real constructive craftsmanship"
Destructive as well as constructive"
suggested Chairman Stanley.
1T was not destructive" Judge Gary IN
sisted I'VE did not acquire the property
Of a competitor of any consequence. We
did not want to create a monopoly OF the
steel business"
| Mr. Gary further said that the United
| States Steel Corporation never wanted a
| monopoly OF the iron and steel business of
| the country.
I'VE consistently have opposed securing
a monopoly" he said. we know that
the very worst thing that could hap
pen to the United States Steel Corporation
is 10 secure a monopoly"
How long have you been afraid 10 try
the full control of the trader Chairman
Stanley asked.
Ever since the corporation was organ
led" replied Mr. Gary. Il can show you
articles written by me as far back as 1900
I'm which / maintained that neither l nor
the Steel Corporation favored a monopoly
or a restraint Of trade. ! always have felt
that a monopoly OF the steel business was
not in the interest Of the country or the
Steel corporation"
! The witness was asked many more cues
! tons relating 10 the White House confer
ence in 1907. particularly TO the exact in
formation given him Of the condition Of the
brokerage firm of Moore & Schley. to save
whom from financial failure the Steel drec-
tor represented to the President that the
| absorption of the Tennessee Coal and Iron
| was necessary.
| Did the President understand" Mr. Lit
| Teton asked. that the failure you predict
ed but did not describe by name would
be a large or small collapse?'
Il am sure that he understood that the
firm had many millions OF obligations in
banks. and that Mr.. Morgan ana other
| leading bankers OF New York had declared
It was necessary for the Steel Corporation
TO acquire the Tennessee company in order
| 10 relieve the situation"
Asked II he or Mr.. Frick knew the char
acter OF the loans Of Moore e. Schley. Mr..
Gary said that they were understood 10
be loans on Tennessee stock.
Mr.. Littleton asked the witness about the
statement of President Roosevelt in his
letter to Attorney General Bonapart, that
Mr Gary had told him that the Steel Cor