Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-06-03

u
Therefore ] began to talk to Ledyard
i abctft purchase OF the stock ut 90 and
we finally agreed to ii. subject to the
I6bjection that might possibly b. made
Ian washington.
1--WE were all clearly of the opinion. :"
said Mr.. Gary To Rep Littleton. that
| the attorney general might not have
| the right to endorse the transaction. :"
The Steel Corporation, he said, had
at that time about SIS 600 900 ON depos-
| it in banks; and could not have with
drawn more than ST. 600 900 without
creating great financial disturbance.
After the agreement had been made
To take the Tennessee stock at 80, =
said Mr. Gary, "Ledyard came to me
and said that Sehley had told him that
The price Of 90 cauid net let them out
of their difficulties / notice that Gates
SAYS in his testimony that when he got
| home frem Europe he made them raise
the price in the transaction II lie
made that statement it must have been
| by Marconi because the whole trans
action was closed before his arrival
| from Europe.
ION NOV. A. at a meeting of the fl
|
| the entire matter was again referred to
| the chairman and agreed with Led
yard 10 raise the price to 100 in order
to let Moore & Schey pun through
| NV bargain was entirely with Ledyard
Mr.. Morgan certainly did not pal'tci-
pated in any way to induce the buying,
or selling. / hold no brief for Mr.. Nor
gan hut | state this because of the
| sensational statements that have been
made
After the agreement 20 bug the
stock al 100, the finance committee Of
the steel Company met and discussed
Ella eing the transaction before Pres
| dcnt Roosevelt. Mr.. Gary said that
1t 10 O'Clock Spndas night Nov. 4.
he called up the secretary OF the
| President from New York .tc arrange
| Cor the conference. He and Mr.. Friclt
| left that night travelling ca spe-
| cisl train and hurried to the White
| House ahead of the appointed hour,
| because Mr. Morgan had told us the
| conditions We're so critical he would
| ike 10 hear the result of our confer
ence at the earliest possible moment. =
After hearing our story" continued
I VII '4dt Ai4t III GSthtilh SttAtl i+1
| would like to consult with the depart
ment of justice Mr. Bonaparte was
out of town and the President called
Secretary of State Root into his of
Gee. The President asked me again
To state the case. did ami the result
| OF that interview I Immediately wired
to New York
Did the President ask See. Roots
| opinion rs to the legality of the trans
action" asked Mr. Littleton.
He did" said Mr. Gary, and there
VAS no disagreement between any of
us
Mr. Gary then told the committee
taat he had record of what took
place or that occasion. On Novem-
Der = two days after the visit to tile
White House. he wrote to Sec. Root
reviewing the entire conference as he
remembered It anG asking Sec. Root
I If this agreed With his recollection.
This letter reviewed the facts pre-
scented to the President, namely:
That the United States Steel Cor
poratinn had the opportunity To pur-
chase more than one-half of the capt.
tai stock of the Tennessee Coal q
~ I'll - At a III ttt 1pIiitNlldl Ill tt&-
cess of its actual value. that the pur-
chase would greatly benefit threaten
ing financial conditions and aver the
failure Of AN important concern that
The purchase would not materially in
crease the amount of steel business
controlled by the United States Steel
Corporation.
Mr.. Gary said in his letter that he
understood the President to say that
While he would not make any promise
as to what the government would do.
he certainly would not stand in the
way. Mr.. Root wrote Mr.. Gary on
Nov. II, saying that the account of
the conference full agreed with his
recollection and that he had sent a
copy Of Mr. Garys letter and his an
swer to the President. recommending
that he transmit it to the department
on justice for it's permanent files. This
letter was followed by this acknnwl-
ledSement by President Roosevelt:
Mr. Gary states the facts as re-
member Them
4 remember" added Mr. Gary, that
Mr. Root said to the President, of
course he had no right to say that we
could buy this property. The Presi-
dent said he understood that and that
all he wished to know was what would
be the attitude of the department of
justice The President said that in
ease of objection we could not be per
mitted to buy. | remember the Presi-
dent saying also that he was glad to
know that the percentage of steel pro-
duction of the United States Steel
Corporation had not increased but was
less than at the time the corporation
was organized. l think he said IN
view of the fact that your percentage
of control of the steel industry has
not increased but decreased and APP
| preciating the financial distress. I
don't believe it is necessary for me to
say that don't feel like objecting un-
| der the circumstances "
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.. Lit
Teton.
We did reach the conclusion" ad-
| .