The Barre daily times. (Barre, Vt.) 1897-1959, 1911-06-14
To Appear Before Steel Trust In
vestigating Committee to
Testify
F. B. KELLOGG ADMITS
HE is COUNSEL
And Has No Apology to Make for II
Either-Was Special Counsel In
the Standard Oil Proceed
ings.

washington, June l4.--Frank IS. Nell
logg, special counsel of the department
of justice in the prosecution Of the
STANDARD Oil company, told the Stan
ley steel trust investigating committee
yesterday he had for years been special
counsel of subsidiary companies Of the
United States Steel corporation in Min
nesota and that he had no apologies TO
make for it,
Chairman Stanley declared that the
committee would summon anyone-be
he president of the United States or
J. Pierpont Morgan-in order to aseer-
tain how certain railroads owned by the
steel trust were able TO declare enor-
nous dividends on small capitalization.
1t is probable former President Roose-
welt and Mr., Morgan win be asked to
appear before the committee when it has
sessions in New York
"The chairman and this committee,
said Mr., Stanley, want to know how
and why certain railroads are able to
pay 100 and $50 per cent. dividends
and put s4O00,000 or s5,00O000 into
their surplus when their capitalization
is only 100000 or S5,000000. That
may be all right and II may not"
Mr.. Kellogg referred TO letter he
had sent the committee in which he
explained that he and his firm, Davis,
Kellogg & Severance, had for years rep
resented the Duluth & Iron Range rail
road and the Duluth. Mesaba & North
ern railroad, subsidiary companies, since
1901, of the United States Steel corpora.
ton. Denying that while acting as
special counsel for the government he
had performed any services for the steel
corporation, Mr.. Kellogg frankly stated
that fee of $4,000 for services pre-
viously performed had been approved
by the officials OF the United States
Steel corporation and paid TO him in
October 1907. after he had undertaken
trust prosecution for the government.
There has been a great deal said,
Mr.. Kellog told the commission, about
my connection with the government and
with the steel corporation. To COM
menee with, have no apologies to make.
j have explained to this committee my
services with these subsidiary companies
to the steel corporation. They were
purely local They did not concern the
steel corporation as an organization.
Just prior TO 1905 ! argued some min
eral rights cases in Minnesota and pre-
scented a bill for $4,000. This, be-
lieve, was approved by the steel cor
poration, in 1907.
"Since 1907 I have given my time to
the government in the Standard Oil
and few other cases until they were
concluded and | have done little II any
other business, My firm has still con
tinued as counsel for these roads and
both my firm and myself are taking
all the legitimate business we can get.
/ have no apology to make to the Amer
lean people for appearing for any cor
poration or individual ] have never adj
yised the organization of any corpora
ton or the operation OF any corporation
under the Sherman law"
Mr.. Sherman said he was never asked
by a government official about the le-
gality or illegality of the organization |
of the United States Steel corporation |
or as to the legality OF the steel cor
poration organization by any of its Off
Gals
Mr. Kellogg said his firm had repre-
scented the Duluth s Iron Range COM
pany over 20 years, long before il went |
into the steel corporation. His princi-
pal duties were to appear as counsel
in big cases. Since the steel corporation
had taken over the property, he under
stood that all bills over $4,000 were
passed upon by the steel corporation
heads, and that he had several such /
bills.
Judge Gayley, former president of |
the steel corporation, who also was a
witness yesterday, continued to-day, and /
is the only corporation witness under
subpoena to appear here at present. Sew
ersl western witnesses are to be heard /
and the committee then win probably
adjourn over until the wool bin is passed /
and meet later in New York.