Perth Amboy evening news., 1911-06-03
GARY SUSTAINS
ROOSEVELT ACT
Says Ssls of Tennessee Com
pany 10 Steel Corporation
Prevented Big Disaster.
WAS NOT A SQUEEZE"
Gates Statement Is Denied
--Cemmittes Hears Other
Side of the Siery.

Washington, June 3.-The story Of
the absorption Of the Tennessee Coal
and Iron company by the United
States Steel corporation during the
panic of 1907 was told to the Stanley
Investigating committee by Judge e.
Fl. Gary, chairman of its board of dI-
rectors. His tale differs materially
from that told week ago by John w,
Gates.
Judge Gary laid before the commit
tee the inside facts of the all night
conferences that were held In }. P.
Morgan's library In the nerve rackina
days of the 1907 panic, described how
be and Henry @. Frick had rushed by
special train to Washington to confer
with President Roosevelt, how the
long distance phone from the White
House to New York had been held
open for q flash of the result While
the conference was on and how finally
widespread financial disaster was
averted by the purchase by the United
States Steel corporation of the Ten
nessee Coal and Iron company.
Judge Gary denied emphatically the
statements made by John W. Gates
before the committee that the taking
over Of the Tennessee company WIS a
squeeze" or forced sale. He de-
clared that the purchase was made a.
the solicitation of Grant B. Schley OF
the banking and brokerage firm of
Moore & Schley and his friends to
save that concern from going under to
prevent the financial calamity that
would certainly follow its downfall
The United States Steel corporation,
according to Judge Gary, after repeat
breach and paid 100 for stock which
they did not consider at the time 10
be worth more than 65. The differ
ence of thirty6ve points represented
what the corporation felt was its duty
to pay to avert the threatening panic.
In all 1t turned about $50, 0,0oo, 900 over
to the firm of Moore & 5chley and en-
abled them TO weather the storm.
AS to the charge that the steel coz
poration had taken advantage of -
desperate financial situation to force
the sale of the Tennessee Gcsss1 81 .aat-5 z,
Iron company and thu throttle an
important competitor, Judge Gary pre-
sented figures showing that the Ten
nessee company controlled only about
2 per cent of the steel business of the
country at the time of the purchase
as compared with Sc per cent by the
steel corporation.
OF almost as much interest We're
Judge Gary's general views Oh the
future of the big industrial corpora
tons in this country. He declared
that as matter Of self preservation
they must come to enforce publicity
and government control. The steel
corporation, he said, would welcome
such control. He agreed with the
suggestion that the Sherman antitrust
law is an archaic statute and declared
that the industrial progress of the fu-
ture demanded corporation in trade if
decentralization is to be avoided.
The steel corporation head denied
that there was any pool among -siie
steel rail producers, but impaired the
information that the price of steel
rails would have to be raised in the
near future.
Mr.. Gary again made very favor
able impression by his testimony and
bis apparent willingness TO give fbe
committee all the information In his
possession.
W B. Dickson, a director of the
United States Steel corporation, will
be a witness before the COMMITTEES
next Monday.