Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-06-08
Bonds Paid for Tennessee Company
We're as Good as Cash.
DOES NOT WANT MONOPOLY
Has Always Consistently
Opposed Such Combination.
OLIVER RIVER STORY DENIED
Report that steel Company is Seeking
Control of the Ohio Through
Coal Companies, He says,
ta False.

II. Gary, executive head Of the United
states Steel corporation. again a witness
before the house steel trust investigating
committee. today declared that President
ROosevelts action in acquiescing in the deal
by which the steel corporation bought out
the Tennessee Coal and Iron company.
was a piece Of real constructive states
manship.'
Mr. Gary. cross-eKamined by Representa-
tive Littleton Of New York. elaborated his
views as TO government supervision OF
corporations and pleaded for greater CO.
operation between government officials and
the directing forces Of big business com
binations Mr.. Gary insisted that the gov
eminent was just as likely TO go too far
in one direction ss the corporations in an
other. Mr.. Gary denied charges, attributed
to Senator Oliver of Pennsylvania that
the steel corporation was endeavoring TO
gain control over Ohio river transporta-
tion lines. TO cut out water competi-
ton in the shipment Of coal
Mr. Gary declared the steel corporation
never wanted a monopoly Of the iron and
steel industry OF the country and had con-
sistently opposed such a combination as
the very worst thing that could happen to
the corporation
President Roosevelt. he thought had been
given to understand that the acquisition OF
the Tennessee Coal and Iron company
would bring the corporations property
above 80 per cent Of the country-s total.
The bonds paid for the Tennessee Coal
company came from the steel corporations
treasury. he said. and were as valuable as
cash. being amply secured This method
OF payment was adopted in order not 10
disturb the financial situation OF the
country.
Control of Ohio River.
Charges alleged to have been made by
Senator Oliver Of Pennsylvania that the
United States Steel corporation is endeavor-
ing to get control OF water transportation
on the Ohio river through absorption Of the
Pttsburg Coal and Coke company and the
MonongahelA river company were presented
TO the COMMITTEES today by Robert c. Hall.
OF F5ttsbnrg. Mr.. Gary. replying 20 ques-
tons BY Chairman Stanley, denied that the
steei corporation had any such plans in
mind
Statements have been made by a senator
Of the United States who has a personal
interest In the PlttsburE Coal and Coke
company" said Chairman Stanley, that
the Monongaheia River company is now
under the control Of the Pittsburg Coal and
Coke company and that there is now pend
ing propositions 20 change the securities
Of those two companies for the bonds Of
the United States Steel corporation. with
the inevitable result that the Ohio river
win cease TO be the medium Of traffic for
the carriage OF this tonnage OF coal
Members OF the committee and attorneys
for Mr. Gary asked Chairman Stanley TO
name the senator. Mr.. Stanley responded
by calling Mr.. Hall to the stand. The
witness said he was a former president OF
the Pittsburg Stock exchange. He related
the history Of the two companies and said
| the steel corporation has a twenty-five
year contract for coal at q price that
4 represented a loss to the mining com
4 panies- A deal is pending. he sEid, for the
transfer to the steel corporation Of a
large acreage OF coal. 10 be paid for in
bonds guaranteed by the steel corporation.
There is no doubt in nay mind" Mr.
/ Hall declared. that the deal means the
ultimate shipment OF all coal in our district
/ by ran and the eradication OF water com
petition. Senator Oliver agrees with this
view"
Contract Better Than Ownership.
'TIr. Hall has Offered no evidence that
we are getting control Of these companies. -
said Mr. Gary.
Your contract is better than ownership
would be. replied Mr. Han. 1T is cheaper
to get the coal at your price than TO own
1 the compsnies.'
Mr.. Hall testified that the PlttsSurg
Coal and Coke company. known as the
ran company in the Pittsourg coal fields.
controls the Monongahela River company,
which ships by r1ver.
We have no thought Of acquiring con-
troll or an interest IN either one Of these
companies" said Mr.. Gary. we have no
interest In them except this contract for
the purchase OF = certain amount OF steam
coal"
Judge Gary again today declared tina,
President Roosevelt and Secretary Of State
Root not only sanctioned the absorption Of
the Tennessee Coal and Iron company by
the steel corporation, but held II 70 be
necessary 20 avert widespread financial
disaster.
Mr.. Gary declared anew that ffnaDcizl
conditions in 1907 were such that somethinE
had 70 be done 10 prevent a panic The
conference at the White House, ne de-
ciared, was the final step in the cam
paign OF prevention and be added that Il
the administration had declined to permit
| the combination Of the two big steel prop
! critics he would have opposed IL In the
| steel corporation. He insisted that the i'm
preston made on his mind and the minds
OF those with him Was that both Mr.
Roosevelt and Mr.. Root fully recognized
the necessity for the merger and accepted
1 IL a. imperative il a financial eatAstrophs
was 10 be Hverted.
II President Roosevelt and Mr Root
then secretary Of state, had objected 70
! this transaction" suggested Representa-
tive Bartlett Of Georgia. would the United
/ states Steel corporation stnl have pur-
chased the Tennessee Coal and Iron COM
pGnyT"
/ Il think ! surely would have voted
| against the purchase Mr.. Gary replied
You were AZ the White House them
| M LAttletOn said, seeking the approval
Of the administration Of the proposed ac-
QUESTION by the steel company OF the Ten
| nessee Coal and Iron stock
That is not quite rightly put" answered
Mr, Gary II is hardly accurate. We
(Continued on Second PEEs)