New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-03

cash taking the Tennessee Coal and Iron
Comnsnv securities as collateral IL that
offer failed to supply Mr.. Schleys wants II
was proposed then 10 buy the stock on ,he
basis of 90, payable In Steel Corporation
stock.
MFR. Ledyard said that would not DO at
ALL that several people offered 10 ioa"
s., 900, 900 each to Mr.. Schley so tnat his
total resources would amount 10 ss'""v"
or S9o00,00Q but that he couldn't possio's
get through with that. Mr.. FLICK anu
myself then conferred with Mr. schiey ana
tried 10 get him to take the loans. we
didn't want the stock.
Mr. Gary SAID Schley told Frick ne must
sell the stock to keep him from BANK
ruptcy; that unless he was mistaken an
assignment already had been drawn up
for Moore & schley for their creditors, and
that Schley's attorney, Thomas Thacher,
might be able to tell Of such an assign
ment.
Il have heard since" said Mr.. Gary,
that Schley has made statements that he
could have got through all right, but any
one who heard him at that time would
not have thought so. Therefore I began
to talk 10 Lcdyard about the purchase OF
the stock at 20. and we finally agreed
to H. subject TO the objection that might
possibly be made in Washington.
I'VE were all clearly Of the opinion"
said Mr.. Gary 10 Representative Littleton.
that the Attorney General might not
have the right TO indorse the transaction"
The Steel Corporation, he said, had at
that time about s750oocOo on deposit in
banks. and could not have withdrawn more
than 100000 without creating great finan-
cal disturbance
After the agreement had been made to
take the Tennessee stock at 90" said Mr..
Gary, "Ledyard came 10 me and said that
Schley had told him that the price Of 90
could not let them out Of their difficulties.
notice that Gates says in his testimony
that when he got home from Europe he
made them raise the price In the transac-
ton. If he made that statement II must
have been by Marconi because the whole
transaction was closed before his arrival
from Europe.
Morgan Not an Active Factor.
ION November 4. at a meeting OF the
finance committee of the corporation. the
entire matter was again referred to the
IMAM man. anu ds4ccu Win LttS ara u
raise the price 10 100 I'm order 20 let Moore
& Schley pull through. My bargain was
entirely with Ledyard Mr. Morgan GER
tainly did not participate in any way to
induce the buying or selling l hold no
brief for Mr.. Morgan, but I state this be-
cause Of the sensational statements that
have been made"
After the agreement TO buy the stock at
100, the finance committee Of the steel COM
pany met and discussed putting the deal
up TO President Roosevelt Mr.. Gary said
that at 10 o'clock on Sunday night. No
vember I. he called up the secretary to the
President from New York to arrange for
the conference. lie and Mr.. Prick left
that night. travelling on special train.
and hurried 10 the White House ahead OF
the appointed hour, as Mr. Morgan had
told US that the conditions were so critical
he would like TO hear the result Of our
conference at the earliest possible mo-
ment'
After hearing our story" continued Mr..
Gary, the President sale he would like to
consult with the Department Of Justice.
Mr.. Bonaparte was out of town and the
President called Secretary of State Root
again to state the case did, and the
result of that interview I Immediately
wired to New York
Roosevelt Consulted Root
did the President ask Secretary Roots
opinion as to the legality OF the transac-
TOM asked Mr.. Littleton.
He did" said Mr. Gary, land there was
hot
Mr.. Gary then told the committee that
he had record of what took place on that
occa sion On November Z, two days after
the visit 10 the White House, he had writ
ten to Secretary Root reviewing the entire
conference, as he remembered it, and ask
ing Secretary Root if this agreed with his
recollection.
This letter reviewed the facts presented
TO the President namely That the United
States Steel Corporation had the oppor-
tunity 10 purchase more than one-half of
the capital stock of the Tennessee Coal
and Iron Company al price somewhat in
excess OF its actual value; that the pur-
chase would greatly benefit threatening
financial conditions and avert the failure
Of an important concern; that the purchase
would not materially increase the amount
OF steel business controlled by the United
States Steel Corporation.
Mr., Gary stated in his letter that he un-
dcrstood the President to say that while
he would not make any promise as to
what the government would do. he GER
tainiy would not stand in the way.
MI Root wrote Mr.. Gary on November
Il, stating that the account OF the confer
ence fully agreed with his recollection and
that he had sent a copy of Mr.. Gary's let
ter and his answer 10 the President
recommending that lie transmit IT to the
Department of Justice for its permanent
files This letter was followed by this ac-
knowl ed cement from President Roosevelt:
Mr.. Gary states the facts as | remember
them"
Il remember" added Mr. Gary, that
Mr.. Root said TO the President that Of
course lie had no right TO say that we could
buy this property. The President said he
understood that, and that all We wished
to know was what would he the attitude Of
the Department of Justice. the President
said that in case Of objection We could not
be permitted 10 buy. ] remember the Presi-
dent saying also that he was glad to know
that the percentage of steel production Of
the United states Steel Corporation had
not increased but was less than at the
time the corporation was organized 1
think he said:
"In view of the fact that your percent
age OF control OF the steel industry has not
increased. but decreased, and approaching
the inancia! distress. don't believe il is
necessary for me TO say that ! don't feel
IKE directing under the circumstances"
When you went TO the President did ii
amount TO your obtaining an opinion as TO
whether the deal was a violation Of the
law" asked Mr. Lttleton.
"NNe did reach the conclusion" said Mr..