Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-10-27

and the ARRANGEMENTS that had al'
ready been made 60 relieve the IruH
COMPANY N America, they reported
TO the president that the only thins
y that would prevent a vicious spread
Of The panic was for the corporation
90 acquire the stock OF the Tepnesset
/ company
The president recorded IN a letter
to the attorncy-gencra in their pres
q. ouoc, their representations lie statt'
Z that +. II. Gary and FITCH told hin
that there was ccrta ID business
firm which would fail n help should
not bee given, and that morning 10
assets were majority Of the Tcnnt'
sser company. The firm referred "a
was undoubtedly Moore 4 Schly, but
IL. was not true ghat among the asscts
OF the firm was a majority of said
securities. The president further said
IN his letter:
] TcGdy Bclict ed story.
Judge Gary and Mr.. Frick In
formtd me that bul little benefit viii
come 20 the steel corporation from
the purchase
This statement 20 the president
] was a misleading one. The property
was very valuable. Next 20 the cor
/ poratiou, the Tennessee company had
! the largest coal ana ore properties IN
/ the United states A competitor was
removed. The corporation, in It's re-
: port TO its stockholders of this pur-
! chase, said that the terms Of pui
! chase were satisfactory as 10 price
and manner Of payment; that the
! purchase Of the property promised
benefit to the corporation; and that
the Tennessee property was very val
I liable
They simply Needed IL.
/ The president was not made FULLY
acquainted with the state Of affairs In
New York relevant TO the transaction
as they existed. II he had been fully
advised, he would have known that a
desire to stop the panic was not the
sole moving cause, but that there was
/ also the desire and purpose TO acquire
/ the control OF a competitor that had
been recently assumed a position Of
potential competition Of great signifi-
/ canoe. The president, taken as he
was. partially into confidence, and
/ moved by his appreciation OF the
gravity OF the situation and the ne
cessity for applying what was reported
! to him to be the only known remedy,
stated that he did not feel II to be his
duty TO prevent the transaction.
| Par for 80" Cent stun.
The matter then moved rapidly
/ to consummation The corporation
and its powerful banking allies aid
not advance the money or lend the
[ bonds OF the Corporation upon the
( Tennessee stock, which would have
/ relieved Moore a Schly so far as the
| Tennessee coal rate was concerned,
and which would not have exceeded
six or eight millions OF dollars. They
( took the position t.4at nothing would
/ relieve the situation but the corpora
/ ton taking over absolutely the ma
jority of the Tennessee stock. THIS
was done, and 1t acquired also, under
the same management, additional
stock. The Corporation exchanged
for the stock It's own bonds on basis
Z which paid par in cash for stock
which Gary few days before said
/ was not worth more than 90 cents on
. the dollar
Il Power Should BE Destroyed.
While as much of the situation
Of the facts are in doubt the Corpor-
alton aVaiied itself of EN- mbarrassing
accounts of Moore & Schly at a mos
/ critical period, and the hammer.ng OF
the Tennessee stock and threatening
Of a general financial calamity TO ac-
quire the control OF a property, took
on a formidable aspect.
The Corporation greatly rrength-
ened its control of the iron ore sup
ply of the country, and its predom-
mating position in the iron and steel
trade of the South, eliminated COM
petitor and unlawiully acquired q
power which is a menace to the wei
fare of the country and should be
destroy
Then the bill goes on to allege the
formation of Illegal pools known as
THE Steel Plate Association. tbs
=. Structural Steel Association, the Stee
, Rail Combination, the Wire Rope
Combination, the Rubber CoveJq
Wire Combination, the Horse Sho,
=, Manufacturers Association the I'm
derground Power Cable Com bination
the Weather Proof and Magnet Wir'
Combination. and the Encased Rub
Der Gable Combination. These ar
; alleged to have been Illegal combin
. atoms TO suppress competition.
Combined AT Meetings.
, Combinations, other than writer
pools and agreements the governmen
} charges were entered into at yariou
meetings one in New York city ol
January II. 1911, is specified in IN
: governments petition, which does no
I but allege these meetings amountel
] to restraint of trade, but In fact goe
= further and shows the great an
= dangerous power achieved by the cor
I poration through unlawful combina
I tion over the trade and commerce o
the country. because the concentrate
= action taken has prevented fluctua
3 tions In prices and competition"
o AT the January meeting" says IN
Q petition, "the demand for the pro
ducts Of the commission did not eX
8 ceed fifty percent of the output, IAN
: there was no possible way Of protect
: ing themselves from competition eN
e cept by coming to an understandin
i that each would be satisfied with
r proportion Of the business. which Wa
i understood by all, and this under
Z standing was caI' ed out; no one com
j. petcd for the recognized business @
J. the others
: Obligation Dcarcr Than Life
e The petition recites that IL wa
Q understood that the honor OF eaC
e person present at the meeting was In
y. Volyed on a basis which was follow
. ed under solemn admonition that the
y are bound by an obligation more es
: Unable than llfo.'
The January 1911. meeting, say
o the petition. was attended by abou
o eighty representatives OF iron an
steel concerns. n large majority @
such concerns I'M the United Statei
y They understood. says the petition
T. that the OBJECT Of the meeting was I
e D ...I s..s.s