Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-06-10
ROOT WILL WIN DENIES COAL DEAL
Gary Says u. 5. Steel Don't
Seek to Control Fuel.
7. R. SANCTIONED MERCER
Tells Steel Probers ex.Presidents Act
Wa Construcuve Statesman.
shlp" am Prosecution
Would BE Unjust

Washington. June s--Judge E. III
Gary. executive head OF the United
States Steel corporation, again wit
ness before the steel trust probers.
declared that President Rooseveltss
action In acquiescing in the deal by
out the Tennessee Coal and Iron COM
pany was a piece OF real construc--
tive craftsmanship.
Mr.. Gary, cross-examined by Repre-
sentative Littleton, of New York elab-
Grated his views as to government
supervision OF corporations and plead
ed for greater cooperation between
government officials and the directing
forces of big business combinations.
He insisted that the government was.
Just as likely to go too far in one j.
rection as the corporation in another
The steel magnate denied charges.
attributed to Senator Oliver, of Penn
sylvania, that the Steel Corporations
was endeavoring to gain control over
Ohio river transportation lines so as
to cut out water competition in the
that this was to be gained through the
absorption of the Pittsburg Coal and
Coke company.
Judge Gary acknowledged In reply
TO questions that the Steel Corpora
ton is negotiating with the Pittsburg
Coal company for the purchase of H.
900 acres of cIal land In the Pittsburg
district. The amount involved is $1S..
600 1000.
, We have agreed to buy. and the
sale will be undoubtedly consummat.
ed, said the witness.
Chairman Stanley was attempting to-
show that the steel company is ra
pidly acquiring the coal.coke deposits
! in Pennsylvania
with the acquisition OF this 10000
acres you will hold 10000 acres, leav-
ing only $4,000 acres of this particular
kind of coal in other hands," Chair
man Stanley remarked
The witness replied that there Is an
abundance of coal in the country that
can be converted into coke.
Never Wanted a Monopoly.
MIR. Gary declared the Steel Cor
poration never wanted a monopoly Of
! the iron and steel industry of the
country and had consistently opposed
such a combination as the worst thing
! that could happen to the corporation.
President Roosevelt, he thought. had
been given to understand that the ac-
QUESTION of Tennessee Coal and Iron
would not bring the corporations
steel property above GO per cent OF y
the country's total.
The bonds paid for the Tennessee =
company came from the Steel CorporA
atoms treasury. he said. and were as
valuable as cash. being amply go
cured. This method Of payment was
adopted so as not to disturb the finan-
cial situation of the country.
Before the committee met, Mr. Gary
was asked whether he had any com
ment TO make on the report that the
government had determined to review
the findings of the bureau of corpora
tons with regard to the steel trust"
upon which II was to determine wheth-
er or not court proceedings should be
instituted
II have read several reports" said
Mr. Gary, which are reported to re-
feet administration views, but have
absolutely nothing to say concerning
them"
Judge Gary declared again, as he
did last week, that Mr.. Roosevelt, then
president, and Elihu Root, then score
tary of state. not only sanctioned the,
absorption Of the Tennessee Coal and
Iron company by the Steel Corpora
tion, but held 1t TO be necessary to
avert widespread financial disaster.
Mr.. Gary declared anew that fnan-
cial conditions in 1907 were such that
something had 10 be done to prevent
a panic. The conference at the White
House. he declared, was the final step.
in the campaign Of prevention, and he
added that II the Roosevelt admins
tration had declined to permit the
combination of the two big steel prop
critics he would have opposed 1t in
the Steel Corporation.
He insisted that the impression
made On his mind and the minds of
those with him was that hot. Presi-
dent Roosevelt and Secretary Root
fully recognized the necessity for the
merger and accepted II as i'm erative,
II a financial cataclysm was to be
averted