The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-08
Judge Gary Gives House
Committee His Version of
Organization of U, S.
Steel Corporation.
REHASHES STORY
OF PANIC OF 1907
Lauds Roosevelt for Allow
ing Acquisition of Ten
nessee Coal and Iron
Company.

WASHINGTON. June Judge Ebert
II. Cary, executive head OF the United
States Steel corporation, gave the house
committee on inquiry today version
Of the formation OF the enterprise which
contradicted testimony of John w. Gates
that the threats Of Andrew Carnegie
to build rival railroads and tube works
had induced J. Pierpont Morgan to in
situte negotiations eliminating In the
gigantic steel combination.
Mr.. Gary also said that IL former Presi-
dent Roosevelt had not approved OF the
absorption Of the Tennessee Coal d Iron
company by the United States steel cor
poration he fMr Gary) never would have
voted 10 consummate the deal
Mr.. CARY discussed tho financial panic
Of 1907 when The Tennessee company
was taken over In claimed effort 70
avert the failure OF ihe New York brok-
eraGc fir!a Of Moore & Schlcy and cnnsc-
ouent disastrous results in the banking
world.
Financiers in Frenzy.
You have no idea" he said of the
financial frenzy which possessed New
Yc:E ~ that panic. II would have been
oasv ior that panic 10 have gone be-
yond all bounds and affected The en-
tire country. Every night during thai
tluc forty or MY leading bankers or
NCN NCtE were gaiDcIcu IN }. L. MOT
caa's library discussing the Srievous sltu-
atirU. STRIVING as best they gould 10 give
support 10 tho weaker banks and pre-
,cni a sDrcad Of The panic. From dar
80 Ggy these men did not know Wiz
ham: would next be attacked hy run
of dcpUsitors.
"Any man interested In the banks n
%cw York al thai Time would no more
lhlrh " doing anything to injure am
o.Ier bank than one of Us would thinl:
o. throwing d lighted match into pow
Cc: magazine near us. lie could not
io surc another hank withou; iHjurinc
G.Dgtii-Gn" decent man. Win sense
eEou"h 10 project his owr interests.
woald not Intentionally do anything to
Ths came after MIR. Gary had been
asked for more details relating 10 MS
conference with Mr.. Roosevelt regardln.
:iic Tennessee deal and his assertion that
he regarded Mr.. RooseVelt's refusal To
Interfere in The transaction as an act
OF great constructive statesmanship
Chairman Interprets Remark.
Chairman Stanley interjected:
Representative Gardner of Massachu-
setts asked Mr.. Gary many questions re-
sardine the Tennessee Coal & Iron trans
action, particularly as 10 why The steel
. 3essec AS a business proposition. p'i
more than $30. 100000 in United States
Steel bonds. $l1 o0o more than il wa
believed 10 be worth, merely 10 prevent
tho failure of Moore & Schlcy. whose OBJ
legations amounted 70 s5,o0O,oOO or So
900, O00
AR. Gardner also sought 10 know what
hank examiners were watching the situa-
ton IN New York when Moore & Schley
got in trouble because OF putting up
Tennessee Coal & Iron stock as collateral
ion loans. He was informed that Clark
WilliamS. state bank examiner OF New
York was IN touch with the situation.
MI Williams probably will be sub
pocnad 10 tell what he knew Of the Ten
nesscc Coal Il Iron company stocks and
collateral in the Trust Company of
America and other banks nj New York
ing them.
Charges From Pittsburg.
Former President Robert p Hall OF
The Pittsbure Stock Exchange submitted
"a the committee 4 letter. charging that
tho steel corporation throttles competi
tion through its banking connections:
that Ia earns cXorbtantly on its heavy
tonnage through collusion of lis con-
trolIed railroads with other railroads:
thai the corporation keeps tab on the
independents through spying systcr
later using banking and freight restric-
tons and moral suasion as cudgels II nee
essary.
Mr. Hall testified before the commit
tee. protesting that the corporation is
engaged in the purchase OF 1000 acres
OF Pttsburg and Connelsvlle coal lands
NOW owned by the Pittsbure Coal G. Coke
company with a view 10 shipping the coal
20 Gary Ind. The letter said this was
an effort 70 save their investment at
an economic mistake induced by the
easerness Of the Chicago directory to
further the.I own interests.
Mr.. Cary VIII he the principal witness
again tomorrow. He said he wanted to-
morrow 70 stale Just what percentage OF
the s'esi business OF the country his COR
porati9n controlled upon its organization.
how That percentage had since decreased
instead Of increasing: what steel compa-
nies taken in b. the steel corporation
80 "a t,.,.
iorn The amalgamation. and what com
D2n!es were not competitors.
How Corporation Was Organized
How Tire United States Steel corpora
ton nsarcned TO he projected was ,old
Dr Judge Gary late today. Questioue"
hy Representative Young OF Michigan
NJ Car: asid he wanted to ten tho
circumstances because of recent stale
rntnts o. tie subject with which he did
"The f'eJerai steel compsrv.' NJ
Cav fr.d had been ~ existence about
no Sc6 2 half Years ! was its ,1resi-
Ce1, h,s was some time IN 1900 and
VI E7.cil came 70 Tay office and sug-
"ss.e1 t'lst fho Federal steel company
"1u'd 20 much improved end he believed
't> coI1e4ie steel interests were for
7io Tai was the first suggestion IN
.rv o2.nion. r'hich led 10 the organize
iicn q thc United states Steel corpora
iicn.
''4fto Mr. Frick had talked To me
spoke 10 Mr Morgan about IL and h,
s''~c-sfcd that other directors OF the Fed
eral Steel conrsnv be consulted regard :
ing the Carnegie proposition. Mr. Frics
talked With r. ". Rogers and other di-
recinrs ri the Federal Steel company
about Il. but nothing came of il at that
particular time
The next thing ] heard was that w
v Moore and others had secured an on
ton from Mr. Csrneeie for the sale OF
his steel plants. / had nothing 10 do
with that option. but knew that the
Nocrcs consulted with the First Nation
al bank OF New York regarding the op-
.'pn. and that officers OF ihe bank con
suited with Mr. Morgan, Mr. Morgan
sert a representative of his firm 10 mo
ID discuss the question OF utilizing the
opiinn on the Carnegie sree interests
"As presented 10 me. I did not think
Soon aftcrT that Charles NJ. srwab aiSyi,uq s,e.
eested to me that the Carnegie steel com