New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-27
REVEALED STEEL HISTORY
Secrets OF Corporation Brought
Out at Stanley Inquiry.
GATES STARTED THE FIGHT
Absorption of Tennessee Coal
and Iron Company Beginning
of Big Exposures.

The STANLEY committee that investigated
.he United States Steel Corporation Tor
,br House OF REPRESENTATIVES was author
,zed ~ the House on NAV N last after
long fight for such an inquiry by Augustus
n STANLEY. who was made chairman or
,hs committee n was tho third invesu-
rs,ins committee authorized hy the last
Congress the others being tho sugar Trus'
emo the Postofice Department committees
Besides NJ Stanley. the members o. inc
Steel Trust committee we're charles H
bartlett. o. Georgia. Jack Besh. ~ texas.
Martin Idrtleion. ~ New York. ana pah'el
NfcCUlicuddy Of Maine Democrats an"
~ r. olmstead. Of Peunsylvania' onn
N-o,,,r II Michigan. John a. Sterling. OF
Illinois. and Henry 6. Dsnforth. Of Ne"
York. Republicans
Hearings were held both I'm Washington
ard this CITY. and the committee went az
one. after the biz men who had 10 d. win
che fo,r,s+iou 81 the steel Corporation ana
Ds .uhsaousrt history Among the wit
,A.s.s called We're John ". Gates, George
" Perkins Charles NJ Schwab. Grant
soblev Judge Carr. Osklsieh Thorne,
lewis cass IAdvsrd and Theodore RooSe-
welt The absorption 81 the tennessee
Cosl ann Iron Company by the steel Cor
rorflor during the manic - 1907 was SUD
.sct ~ great interest," N the investigators.
and p large part # the TESTIMONY taken
was concerned with that deal
The tastinrory n tho different witnesses
varied greatly ON this - on other points
,,vsstirated NJ Gates. who was ono ~
-he FIRST witnesses said that not dollar
of money changed hands I'm the Tennessee"
C'oel and Iron deal md that the assets Of
Va hank we're Increased thereby. EN-Presi-
dor, Roosevelt who appeared before the
cor,mirfee without "a subpoena being issued
Cor him said that no gave his consent 10
Tho deal to save tha situation ~ inc ui'e
NJ rho manic and prevent tho failure OF TWO
trust companies He said; II acted enurey
on ms own initiative. and 7 accent tho en-
tlre responsibility
oaxleieh Thorue. president or the TRUST
Couusrv of America, said tho tennessee
Goal and Iron deal was made to squeeze
his COMPANY. and said that the 1907 panic
vas bankers panic He accused George
" Perkins Of issuing a statement intended
90 cause a run ON the Trust COMPANY OF
A,,s~icg MI Perkins said in reply that
there never vas more infamous he start
81 Judge gary testified that the Steel
co-roratior did not want 70 buy the Ten
ressae coal and Iron. but thar - did u
~ save the situation among the banks ~
>eu- York Grant 2. SChley. NJ Moore q
eoblsv said that the deal was mad" u
save his f~r, and enable b. 70 take M us
leans with banks and So make the banks
safe
Andrew Carnegie was m England a. tn'
time the investigation was I'm progress
Among other things John w. Gates tesune'
that Mr.. Carnegie had sold 70 the steel CO..
rc-atiou for 500 OOo. ono in securities what h'
could not get $3.50. coo I'm cash for. Wher
NJ Carnegie was asked about this and abou
the Tennessee Coal and Iron deal. he SAID
u don't see why 7 should notice snythin'
Mr. Gates NAV say Whatever he think
or saws does not interest me IN any wa
whatever have had nothing az all 70 d'
with them and know nothing az all or thes
dirty scandals"
There were almost a. many variations y
,rs formation Of the Steel Corporation al
+here we're of the Tennessee Coal and Iror
deal Mr. Gates said that ne and j. T
Morgan and Charles NJ S~hwah engineereC
e. Nrr -Srhwah said that mo- FIRST sus
sested the idea i7 speech 90 dinner
some time afterwsrd no was asked TO NEE
NIr Gates and AR Morgan and get fo'
them q price on Andrew Carnegie sree
rlants He sot the price and that was al
hs had 90 do with Tho formation of fine
trust he said
Judge Ga-v testified that The idea was
FIST formed ir rho mind ~ b. g. FricE
PM that 81 was SOLELY to Sct together
VOL rounded steel plant. without an
tfrurht or preventing Andrew CsrneSi
from extending his steel interests. as ha'
been testified to ry John vs.. Gstes. Ac
ccrdfrs 20 Judge Gary. Mr. Morgan for
long timc fought shy Of the plan.
4, r. Huston. president Of the Luson
Iron and steel 'ompanr. gave testmou
Indicating tEat prices were discussed am
settled urcn at tho famous Gary dinner
while VS. g. Temple for several wears com
ri-si0ne~ ~ ths old steel pools testine
tn@t Tudoe Gary had stop0ed the pools
Birth Judge Gary and ,ieorga ". Perkin
oppressed fhsWSeiver a- boo favor oI GOV