Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-06-14
Says Steel Rails
Price Was AGREED
FORMER CORPORATION MAN
TELLS OF "GENTLEMAN'S
AGREEMENT"

Washington, June 13.-James Gay
ley, former wee president of the Uni
ted states Steel corporation admitted
today before the congressional com
mittee investigating the steel trust
that there was a "gentleman's agree
ment" between manufacturers in this
country to keep the price Of steel rails
at $2S a ton.
The witness was closely questioned
by Chairman Stanley to ascertain
whether that price was not regarded
as excessive even in the steel trade
He was unable to get a definite an
swer ON this point and then attempt
ed to get light on the "gentleman's
agreement"
Can you tell me how It happens
that our steel manufacturers are
agreed that the price Of s2S is a
correct one for steel rails?" he asked.
"I don't know whether there is any
agreement between the railroads and
the s,eel manufacturers as prices OF
steel rails, replied the witness.
There has, however. always been
Il feeling Of fraternity between rail-
roads and steel workers" t-.''
Did the railroads ever haggle over
the price after this fraternity became
evident?" asked NJ. Stanley. @ 20
81 do not know" wa sthe reply
81 only know that the price Of s2S
was regarded as reasonable by steel
men and railroads, I don't know how
the agreement was reached" ta,d
Mr., Gayley
Kellogg referred to a letter he had
sent to this committee in which he
explained H. and his firms affairs
kelog and Severance had for years
represented subsidiary companies OF
the Steel Trust since 1901.
Denying ttat while acting as spe-
cial counse tor the government that
he had performed any service for the
steel corporation, Mr. Kellog frankly
stated that a fee of $4,000 for ser
vices previously performed had been
approved by the officials Of the steel
corporation and payed to him in Oc-
iober. 1907. after he had undertaken
the trust prosecution for the govern
ment.
There has been a good deal said"
Mr.. Kellogg told the committee,
about my connection with the gov
ernment and with the steel corpora
tion. To beSin with, l have no apol-
USy to make | have explained my
serN ices vita those companies, to the
steel corporations. They were purely
local. They had no concern with the
steel corporation as an organization
Since | have given my time to the
government In the Standard OH and
4. few other cases until they were con.
cluded, and lave done little II any
other husin tss. | have no apology to
make to the American people for ap-
pearing for any corporation or indl-
vidual under the Sherman law.
wish TO make this statement as broad
as possible"
Frank Kellog, special counsel for
the Department of Justice In the
prosecution OF the Standard OH Com
pany, and known os the trust bust
er," told the Stanley steel trust in
vestigating committee today thai for
years he had been special counsel
of subsidiary companies OF the steel
trust in Minnesota and that he had no
apologies to make for Il,
Chairman Stanley declared the
committee would summon anyone, be
he president Of the United States, or
j. Pierpont Morgan In order to as
certain how certain railroads owned
by tho steel trust, were able to de-
clare enormous dividends on small
capitalization. Il Is probable Former
President Roosevelt and Mr.. Morgan
will be asked to appear before the
committee when It holds Its sessions
/ I'm New York