Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-06-08
GARY SAYS TEDDY
FAVORED MERGER
GAVE CONSENT TO BUYING TEN
NESSliE COAL AND IRON co.
saved new YORK failure
Committee Wishes 10 Know More of
How the Purchase "Avcrted" Wide
spread Panic.

by Associated Press
Washington, June Judge Gary
again took the stand before the stan
ley investigating committee to con-
tinue his recital of the details Of the
merger Of the Tennessee coal and
Iron company and the steel corpora
tlon,
Representative Llttleton Of New
York, famous as criminal lawyer to-
day took the place Of Chairman stan
ley in cross examining the steel mag
nate.
The committee was not quite sat
isfied with Judge Garys explanation
last Friday that the absorption of
the Tennessee company was necessary
to prevent ruinous panic. In this
connection Mr. Gary told of the mid
night conference at the home OF j.
Pierpont Morgan and the Journey by
special train Of Henry c. Frick and
himself 10 the White House, where the
consent Of President Roosevelt and
the then Secretary Of state Root was
gained for the merger.
The preliminary line Of questioning
today Indicated that the committee
wants more detailed explanation OF
how the merger ayerted a panic since
IT was testified that no cash changed
hands, but that the securities Of the
l fpit nI nj
merely exchanged for the bonds of the
Tennessee Coal and Iron company
Would you have purchased the
| Tennessee Coal and Iron company II
President Roosevelt had not given his
consent ?" Judge Gary was asked.
II don'tthink I would have" was
the answer.
The former president has said that
he was told that unless the merger
was allowed an important firm in
New York would fail. Who was that
firm ?"
Moore g. Schley," said Judge Gary
WAS the President told how much
the firm owed and the number OF
banks involved.
'T think not"
"Was the president furnished with
the statement OF this firm that YOU
say you and Mr.. Morgan and others
were trying to save?"
"I think not" said Judge Gary.
/ Judge Gary volunteered the infor-
nation that the Presidents consent
was a bit OF constructive policy"
ut was destructive Of the law, and
It was constructive OF the steel trust
company" said Mr.. Stanley
How the United States steel cor
poration happened to be projected wa.
told by Judge Gary.
The Federal Steel Company
Gary said, had been In existenc,
about two Years and a half wa,
its president This was some time II
1900, and Mr.. Frlck came to me ant
/ suggested tNat the FeGeral Steel Com,
pany could ne improved, and he be,
lleved the larnegie steel Interests
were for ~ le. That was the firs
suggestion, n my opinion, which led
to the Organization Of the UniteC
States steel corporation.
such matters as ! hear were tes
tiriod to b. Mr.. Gates before thi
committee Gary said - don't re
member tha' Mr.. Morgan ever men
/ toned the matter to me.
Mr. Gary said that when II came t.
the matter of discussing the charte
and form Of this organization of tn,
steel corpo' alton, Mr., Gates hat
nothing to 90 with that. His (Mr
GatesD connection he said, was e
look after the interests OF the Amer
lean steel and Wire Company In tn,
transaction
The committee today issued n sub
poena for tlic secretary OF the United
States steel corporation and for tn
production OF the minutes OF the cor
poration's finance committee meet
ings at wnith the purchase OF tn
Tennessee coal and Iron Compan.
was discussed
The committee then took Il recess.