New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-03
With Henry G. Frick He Rushed
to Washington to Secure Pres.
ident Rooseveit's Consent to
Purchase of the Stock.
ROOT APPROVED PURCHASE
Gary Says His Company Would Wei.
come Government Regulation Of
Prices for Steel - Favors
Publicity and Co.
operation.
fFrom The Tribune Bureau. !


OF high finance. Of the panicky days ot
1907. and of a morning in November
when men Of millions stood az the New
York end OF an open telephone wire
waiting "to hear from Gary and Frick
at the White House"-where the fate ~
the Tennessee Coal and Iron Company
hung in the balance-was told 10 the
House committee investigating the
United States Steel Corporation by Ell
bert II Gary its executive head. to-
day.
The narrative. gripping in its closeness
10 detail came AT the end Of six hours
testimony so frank that it was sensa-
tional II was a first hand account o,
now famous conference at which Pres
ident Roosevelt had said go ahead
and the United States Steel Corporation
attempting 10 check an already ruinous
panic. gave the word that the Tennessee
Coal and Iron Company should be ab-
sorbed. Ex-Judge Gary told why. ana
how. and when the deal Of millions had
been consummated.
The committee seemed loath 10 inter-
rupt the fascinating tale Mr.. Gary vol
unteered 10 tell all Earlier in the day.
speaking with a freedom that no one
had anticipated the head of the So
called Steel Trust had told the commit
tee that the Sherman act Is inadequate:
| tai 70
modern business conditions"
MIR. Gary for Publicity.
In the next breath Mr.. Gary advocated
governmental control OF the prices fixed
bv all corporations Eventually compe-
tition must give way 10 publicity ana
co-operation." he said The United
States Steel Corporation would Ike 70
know where il stands: would welcome
the opportunity to go 10 some responsl-
ble governmental scource and say. Here
are our facts. what prices may We
charge"
Gradually he reached the story Or the
.bsorntion Of the Tennessee Coal and
Iron Company. Developments came
with startling rapidity. There had oeen
present at that early morning confer
ence AT the White House, on NoVenloeF
1907. President Roosevelt. secretary
poo, Henry c Frick and +. II Gary.
That Secretary Root. in the absence oi
tho Attorney General. was the chiei az
wiser OF the President had never Oee"
fully shown before.
There is on file al the Department oi
,uetice according TO Mr.. Gary fne'i'o-
r,rdum OF the conversation pe'"S"
,bese four which made financial hislolS'
peturning TO New York. "here VIC
,or,or was made. Mr.. Gary wrote SeC-
retarv Root 10 know II MS reCoi'e0 Si0'
:. .ba conversation memorandum IN
-, u,os correct. The Secretary re-
n,,ed that II was. The Secre'alS a'
said that the President agreed WIN MN
os IN its correctness and that the N"tu''
minutes OF the conference had oeeh "'eu
9th the Department Of Justice by ''e
President
Conference Not Secret.
Mr. Gary thought deeply a moment
leaned over the table and said.
THE merger was necessary we 'o'i
,he President so; he agreed WIN US
have never been enjoined 10 secrecy as
~ what transpired at the Nh'te houSe
,ho, dav. see no reason why TINS COM
r;,tee should not know the story
nrorose now 10 lay before YOU the copies
~ the letters that passed between my
se,f and Secretary Root and secretary
poo, and the President. Here they are
,ortlemen. | shall read them.
Judge Gary read slowly and impress
s,,.olv the account OF the White House
corfe,ence. No sound was heard except
the scratch of the stenographer PEN
Then he amplihed the details OF the
merger.
"The Tennessee Coal and Iron COM
many he said. was I'm desperate straits.
Failure seemed imminent. what that
meant during the existing panic no one
could foresee | talked OF the merger
with J. Pierpont Morgan. told MIN 'na'
was willing To undertake II without
seeing the people at Washington. MI
.
Morgan said was right.
MIR. Frick and came to Washington
that night and reached the White House
n q o'clock that morning. The Pres'-
dents secretary said that the Presldent
WAS al breakfast: that he would ho'
come TO the Office for an hour. / asked
m to tell Mr.. Roosevelt that our MIS-
sion was urgent. In moment the
President returned with his secretary
Mr. Root Advised President Roosevelt.
I'VE outlined the seriousness OF the
) s;,uation. The President said at once he
would like 20 consult the Department OF
,ustice. The Attorney General was out
| ~ town. The President telephoned Tor
secretary Root and he came immedi-
otely. MIR. Roosevelt asked me To repeat
my story in the presence of Secretary
Root. There was no disagreement In tho
views of any of us. The President SAID
that ne could not give me absolute
lauthority to effect the trade. but that. ia