The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-03

| attitude Of the department OF justice.
The president said that in case OF OBJ
lection we could not be permitted To buy
l remember the president also saying ne
was glad TO know that the percentage OF
steel production Of the United states
Steel corporation had not increased. but
| tion was organized. l think he said In
| view of the fact that your percentage of
control OF the steel industry has not IN
creased, but decreased, and appreciating
the financial distress. L do not believe II
necessary for me to say that ] don't feel
like objecting under the circumstances.
Effect of White House Visit
when you went TO the president, did
it amount to your obtaining an opinion
as to whether the. deal was violation
OF the law?" asked Mr.. Littleton.
We did reach the conclusion. admit
ted Mr.. Gary that II we @ ACQUIRED uh,,id the he
a proceeding by the government against
us to prevent confirmation Of the deal
1t would amount to great outrage;
| the company thought IL would nave
strong defense. did it?" asked Mr. Lit
We'll l should think we would have,
ii Mr.. Martin Littleton were defending
the case" said Mr. Gary.
Mr.. Gary said he regretted that Chair
man Stanley of the committee believes
that Frick and he misrepresented the
| facts TO President Roosevelt and he
| wanted to satisfy the committee by facts
and figures that there was no misrepre-
| sentation.
Il believe everyone connected with the
United States Steel corporation cares
more for his conduct, reputation and
or losing OF few dollars
Chairman Stanley's Opinion.
Chairman Stanley said his opinion.
| whatever 1t was. had been formed after
careful study OF the facts presented
before the senate committee and the
judicial Interpretation OF its members,
II regarded the absorption Of the Ten
nessee Coal & Iron company by the tacit
| consent of the president with profound
establishment" said Mr.. Stanley
II have always regretted that the full
| facts as 20 our conference With the presl-
dent did not develop at that senate hear
Mir. Ga,y said Moore & schley would
| have failed IL the banks had recalled their
| loans.
Did anyone try to find out the ex
act amount Of these loans?" asked Mr.,
I'VE tried TO verify their statements
anime their books" said Mr., Gary,
My only recollection is that they re-
| ported the loans 10 be very large
Was IT not necessary for you 10 be
advised of the necessity for purchasing
the company, unless YOU actually knew
the amount that Moore e Schley
Yes" said Mr.. Gary. Il think we were
deceived in this respect at least, | be-
lieve that Moore & Schley had much
larger amount OF this stock deposited as
collateral than they actually possessed.
Gary Refers to Gates.
Referring TO the testimony given by J.
| w. Gates last Saturday. in which he said
he believed the taking over of the Ten
nessee Coal company was forced sale
Mr.. Gary said
Mr.. Gates says that the board Of di
rectors passed a resolution that ma
| jority of the stockholders should have
right to turn In their stock at a recent
meeting | have no recollectlon OF II:
| II IT were true, IL would look as if they
we're rather forcing us 10 buy. and not
we who were trying 10 make Hthem sell.
As matter OF fact. the memorandum
provided that we should take the NIL
nority stock at the same price as the
other, This was consummated before MIR.
| Gates returned from Europe. think
he Is unacqualnted with the facts
Mr.. Gary was also questioned concern
! ing the apparently phenomenal earn
! iugs" OF the railroads in the Lake Su.
pcrior region, owned by the United
States Steel corporation. Figures of the
earnings were read TO him and hc as
sumed they were correct
The Duluth * Iron Range railroad, OF
| which Nh Cary is a director. declared
dividends from 40 10 so per cent since its
absorption by ;he United states steel
corporation and had net earnings of
years. Mr.. Gary explained this was
largely because Of the advantage In lnca-
tion of the road and because they were
connected with enormous interests which
enabled the companies 10 keep the roads
in perfect condition and furnish trans
poriafion facilities at mlnimum cost.
Why Ore Business Pays.
Mr. Stanley asked If these steel cor
pora lion roads which hauled ores 10 the
lakes did not haul the coal and coke back
| LII.
the rate charged TO haul ore from the
mines. Mr.. Gary said he could not deny
that.
were not men. who were also interested
! in protecting the situation. who would
have shared with the corporation the bur
replied that there We're few mon 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 persons who are. in
| financial distress. He has done II time
and again This time he rlsked his
money and his name to save the situa
! ton
There were several other men present
AT the conference and they were all very
| much excited and believed as Mr. Morgan
did. that Moore d SchIcy would fail if
this stock was not purchased and that il
| they failed with these loans i'm the
rious banks there would be a bad sltua-
! ttun.
| THE bankers all hoped that the United
states Steel corporation could afford TO
| buy this stock aud TO help out the sit
uation. I have moi said that the United
states steel corporation expects TO suE-
| fer ultimate loss on the transaction"
But why did not some one else buy
| it, asked Representative Gardner.
There was no other customer for II.
said Mr.. Gary. III IL had been put
J on the market il would have gone very
low, and I believe the company would
have been thrown into bankruptcy
| UNION RIACKSMITHS IN
BUSINESS CONVENTION