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

Il have .aiways- regretted thatethe
full Facts aas TO our conference With
the Presidsnf sdidsnot develop at that
Senate hearing. said Mr. Gary.
Questioned by Mr.. Littleton, Mr..
Gary said Moore & Schley could not
failed if the banks had not called their
loans.
Did any one try to find out the ex
act amount of these loans?' asked Mr..
Tittleton.
we tried to verify their statements
by sending two representatives to ex-
anime their books" said Mr.. Gary.
My only recollection is that they re-
ported the loans to be very large"
WAS it not easy for you to have
been deceived as to the necessity for
purchasing the company, unless YOU
actually knew the amount Moore &
.Schley owed%' asked Mr.. Littleton.
yes. said Mr. Gary. II think We
were deceived in this respect at least
believe Moore & Schley had a much
larger amount of this stock deposited as
collateral than they actually possessed.
Referring To the testimony given by
John w. Gates, last week. in which
he said that he regarded the taking
over of the Tennessee Co. as a forced
sale. Mr. Gary said:
Mr.. Gates says in his testimony that
the board of directors passed a resolu-
ton that the minority stockholders
should have the right to turn in their
stock at the same price. ] have no
recollection of that IL it is true. it
would look as though they were rather
forcing us To buy than that we were
trying to make them sell. LAS "A mat
ter of fact. the original memorandum
provided that We should take the mi
norty stock at the same price as the
other. This was contaminated before
Mr.. Gates returned from Europe. ]
think he is mistaken in his memory of
the facts"
Mr.. Gary was also questioned con-
corning the apparently phenomenal"
earnings of the railroads in the Lake
Superior ore region owned by the United
states Steel Corporation. Figures of the
earnings were read to him and he as
sumed they We're correct.
The Duluth and Iron Range Rail
road. of which Mr.. Gary is director,
has declared dividends from 40 To so
per cent. since its absorption by the
United States Steel Co. and has had
net earnings of more than $3,000,000
annually in late years. Mr.. Gary ex-
planned that this was largely because
of the advantage in the location of the
roads and because they were connect
ed with enormous interests which en-
abled the companies to keep the roads
in excellent condition, and furnish
transportation facilities at a minimum
cost.
Rep Gardner asked if there were
not men who We're also interested in
protecting the situation, who would
have shared with the Steel Corporation
the burden of relieving the situation
Mr.. Gary replied that there We're few
men who took the view of a financial
crisis that Mr.. Morgan does.
Mr. Morgan is one man." he said,
who, on such an occasion, rises and
puts his own money into other banks
or into the Stock Exchange To prevent
panic and trouble, and TO help people
who are in financial distress. He has
done it time and again. This time he
riaked his money and his name To save
the situation.
ttttA were several DllltF gentlemen
present at the conference and they all
were very much excited and believed as
Mr.. Morgan did. that Moore & SehleY
would fail if the stock was not pur-
chased and that If they failed with
these loans in the various banks. there
would be a very bad situation.
The bankers all hoped that the
United states Steel Corporation could
afford to buy this stock and 10 help out
the situation. / haven't said that the
United states Steel Corporation cX-
poets To suffer ultimate loss on the
transaction"
But why didn't some one else buy
it, asked Rep. Gardiner.
There wasn't any other customer for
it, said Mr.. Gary. IF it had been put
on the market it would have gone very
low and l believe the company would
have been thrown into bankruptcy"
Washington. June president Taft
was asked today by some callers
whether he thought the Sherman anti
trust law antiquated. No" replied
Mr. Taft, they are Just beginning To
make it useful"
WINTHROP CENTRE.
The Y. r $. c, E. recently elected