Evening star., 1911-06-03

tho amount Of steel business controlled
by the United States Steel Corporation:
Mr.. Gary stated in his letter that he
| understood the President to say that
while he would not make any promise as
to what tho government would d. he
certainly would not stand in the way.
Statement Approved.
Mr.. Root wrote Mr.. Gary November
IL. stating that the account Of the con-
ference fully agreed with his recollection
and that he had sent . copy Of Mr..
Gary's letter and his answer to the Presi-
dent. recommending that he transmit 1t
to the Department Of Justice for its per-
manent files. This letter was followed
by this acknowledgment from President
Roosevelt: Mr.. Gary states the facts as
remember them
| II remember" said Mr.. Gary. that
Mr.. Root said to the President that OF
course. he had no right to say that
we could buy this property The Presi.
all we wished to know was what would
be the attitude OF the Department of
Justice. The President said that In
case Of objection we could not be per-
mitted to buy.
II remember the President saying
also that he was glad to know that
the percentage OF steel production OF the
| United States Steel Corporation had
| not increased. out was less Cudu III tuc
time the corporation was organised.
| think he said: In view Of the fact that
your percentage Of control Of the steel
| industry has not increased, but de-
creased. and appreciating the financial
distress. I don't believe 1T is necessary
for me to say that don't feel like OBJ
jecting under the circumstances'
Question Of Law Raised.
when you went to the President did
it amount to your obtaining an opinion
as to whether the deal was a violation
Of the law" asked Mr.. Lttleton.
I'VE did reach the conclusion" admit
| ted Mr.. Gary. that II we acquired the
securities and afterward there should
| be a proceeding by the government
against us to prevent confirmation of
the DEAL 1t would amount to great
| outrage"
And II such proceeding were taken
the company thought 1t would have
strong defense. did it?' asked Mr.. Lit
well. I should think we would have.
| II Mr.. Martin Lttleton were defending
the case" said Mr.. Gary.
Mr.. Gary said he regretted that Chair
that Mr.. Frick and misrepresented the
facts to President Roosevelt" and he
| wanted to satisfy the committee by facts
| and figures that there was no misrepre-
N.
II believe every one connected with the
United States Steel Company cares more
for his conduct. reputation and character
| than he does for the making or losing
OF csa,rvn few dsilars:n sisI,:, he declared lar
| lon. whatever 1t was. had been formed
after careful study of the facts pre-
sented before the Senate committee. and
the judicial Interpretation Of its men,
bers.
Chairman Stanley Astonished.
IT regarded the absorption Of the Ten
nessee Coal and Iron Company, by the
tacit consent Of the President, with pro-
found astonishment." said Mr.. Stanley
Il have always regretted that the full
facts as to our conference with the
President did not develop at that Senate
! hearing" said Mr.. Gary.
Questioned by Mr.. Lttleton. Mr.. Gary
said Moore & Schley could not have
failed II the banks had not called their
loans.
Did any one try to find out the exact
tleton.
I'VE tried to verify their statements
by sending two representatives to ex-
anime their books" said Mr.: Gary. MY
the loans to be very large"
Was 1t not easy for you to have been
deceived as to the necessity for pur-
ths Mco1s ssey
| owned" asked Mr.. Littleton.
Yes. said Mr.. Gary. Il think we
We're deceived in this respect. at least.
| larger amount Of this stock deposited
sessed"
Referring to the testimony given by
John W. Gates last week, In which he
said that he regarded the taking over
OF the Tennessee company as q forced
sale. Mr.: Gary said:
the board Of directors passed a resoiu-
ton that the minority stockholders
should have the right to turn in their
stock at the same price. have no recoi-
look as though they were rather forcing
us to buy than that we were trying to
make them sell.
Minority Stock Included.
LAS a matter Of fact. the original men,
orandum provided that we should take
the minority stock at the same price as
the other. This was cOnsummated be-
fore Mr.. Gates returned from Europe.
think he Is mistaken in his memory OF
the facts
Mr.. Gary was also questioned concern
Ing the apparently "phenomenar' earn
ings OF the railroads in the Lake su-
perior ore region owned by the United
States Steel Corporation. Figures OF the
| earnings were read to him and he as
sumed they were correct
| The Duluth and Iron Range railroad.
Of which Mr. Gary Is director. declared
a dividend OF from 40. to 80 per cent
since It's absorption by the United States
Steel Company. and had net earnings Of
more than 100000 annually In late
years. Mr.. Gary explained that this was
largely because OF the advantage in To-
cation OF the roads and because they
were connected with enormous interests
which enabled the companies to keep the
roads in perfect condition and furnish
transportation facilities at a minimum
cost.