The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-06-03
Believes Federal Regu..
lation Of Corporations
Must Come.
1T WILL EXTEND d.
EVEN 10 PRICES:
Calls Sherman Law Archaic, and
Declares It Never Can Pre-
vent Great Combinations Of II
Capital-Tells How Roose-
welt Approved Absorp-
ton of Tennessee Co.

Washington. D. c.. June hilbert
II. Gary. chairman of the United States
Steel Corporation directorate, told the 4
Stanley steel trust Investigating COM
mitteo to-day that his corporate stood K
behind J. Pierpont Morgan in avertins
disastrous fins ncial upheaval in 1907.
lie insisted, challenging the statements
Of John W. Gates before the con1ittee,
that the purchase By the Steel Corpo.
ration of the Tennessee Coal and Iron q
Company at that time was made at a
price more than 1t was worth for the
express purpose of preventing the
of Moore & Schley. 5
Mr.. Gary related a dramatic story OF
the momcntous events which preceded
the absorption of the Tennessee con- q
Germ. He described in detail how he y
and Henry C. Frick, at the instance of
Mr.. Morgan, had revealed the plan OF
buying the company at price greater
than It's value, to President Roosevelt =
and Mr.. Root. then Secretary Of State.
tle told how he had concluded afterE
their interview with Mr.. Roosevelt Z
mat any government prosecution or
their act would have been an "out-
rage" TIT l.5g A 3;st
Startling Prediction.
MT. Gary made many surprising
statements during his eight hours
eAan0ii nation ton, put none more startling 4
| than his declaration that government
control and publicity of corporations
| IN thiS country must come. He said
that. through the American Iron and
steel institute. the heads of the steel
industry were trying to steer a course
petween the Sherman antitrust law
which he characterized as .,archaic."I on !;
the one hand. and the old time meth Is
obs OF destructive competition, on jthe
otner, IN order to operate for the pub- s.
| lie welfare. ~ ]3i d l-i 'n,is'E2
! Mr. Gary announced 10 the commit.
tee that he wanted everything known
conserving the Steel Corpora ton. and.
more than all, he, pleaded for some rs . +
sponsiolc government source to which (
| such necessary great corporation
could appeal for guidance in the CON- K
duct of It's business. He agreed ~ /;
furnish the committee SO much that
~ wishes to know that he will be re- {,
called when 1t meets again next We'd
nesaay. Others who have been sum
moned to appear are w. b Dtclsson y
OF the Steel Corporation. and John &
lambert, of the Republic Iron and
Steel Company. y n. ~
Ar. Gary told the committee the en- ii
forced publicity and government con 4
Soi OF corporations must come even ).
as 70 prices. He said he believed the5
sherman antitrust law was too@iarNA
chaic to deal with modern situations
una never could fully. prevent great
K com oinations of capital What thai :,
United States Steel Corporation wants.
to which IT could so and say WIZ
we do?" ' iisl can can 5
Tells OF Acquisition.
Ieiilng In detail of the ACQUISITION,
OF me tennessee Coal and Iron Com
l. a 49,. cnl -
sell MAD been made BY people repre- &
senting that company prior to the fall 5
OF 9O7 and finally Mr.. Morgan fold B!
MIN MIN that Grant B, Schley. mana glne Il
director of the Tennessee Company.
was much In need of money, to use
.he pank. The firm of Moore & d
The business finally resulted con-
unued MI Gary.,"in my accommodate
lhS Ar. Schley with loan OF 81 200 .l1
ooo par value of United States Steel 3
second bonds. and taking from him an <.
agreement TO return those bonds and 4.
received as security for the fulflment
OF that :reement $4,000. 900 par value d
stock II the Tennessee Coal and Iron Y
company The agreement provided
mat If the loan was not returned 4
April 90, 1908. the ownership of the N
S2,oo0,ooo OF Tennessee Company stock
should remain IN he control OF the
N''''ttu >ttci
Later Mr.. Gary said. Schleyl told Il
Frick that he must sell the stock to
Keep him from bankruptcy. 81 have
heard SINCE" Mr. Gary went on to say, Il.
i that Schley has made statements that Y
ne conld have got through all right, II
but any one VITO heard him talk ut
that time would not have thought So
Therefore. began to talk to At
torney Ledyard, for the Tennessee
/ company. about the purchase of the
| stock at ninety. and we finally agreed IF
! 10 1t. subject to the objection that Il
| might possibly be made at washing II
| ton. re- ss-.i! ss
Mr. Gates says in his testimony
| that when he got home he made theml5
! raise the price in the transaction. re +
| he made that statement. 1t must have
been BY Marooni because 1.-THE whole
transaction was closed before his arr
! rival from Europe" SlS
Rooseyclt Didn't object. 3.5 "a
| OF his conference with Presidents &
Roosevelt said Mr.. Gary, IT remember
that Mr. Root said to the President q
that of course he had no right to- say
that we could buy this property. The u
President said he understood that, and B
| thai all we wished 10 know was what
! would be the attitude of the Depart;
! mentsfof Justice. The President said 81
/ that in case OF objection we would not B
! be permitted to buy. L remember the 1
i President saying also that he was glad !,
to know that the percentage Of steel
| production OF the United States Steal
Corpora ton had not increased but was B
less than at the time tho cor poration &
! was organized. sf4Ss KS
! II think he said: In view az IN IL
| fact that your percentage OF control
| OF the steel Industry has NOT inerea SEQ II
but, decrcased, and appreciatIng Ntfli NJ
L . -. Z. 20