Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1911-06-10
REPEATS 7. R.
FAVORED MERCER
Gary Says II Was Constructive
Craftsmanship"
DENIES GOBDLiNG COAL
Tells Steel Probers Of sfs, ooo, 900 Deal
For Fuel, But Denies Attempt to
Control Output.


Control Output.
Judge Ebert II. Gary. executive
head OF the United States Steel cor
poration. again a witness before the
steel trust" probers In Washington,
declared that President Roosevelt's
action in acquiescing in the deal by
which the Steel Corporation bought
out the Tennessee Coal and Iron com
pany was 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 di-
rection as the corporation in another.
The steel magnate denied charges.
attributed to Senator Oliver. of Penn
sylvania, that the Steel Corporation
was endeavoring TO gain control over
Ohio river transportation lines so as
to cut out water competition in the
shipment of coal. The charge was
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
he nf
900 acres of coal land in the Pittsbnrg
district. The amount involved is $751;
100000.
I'VE 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 1900
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.
Mr.. Gary declared the Steel Cor
poration never wanted monopoly of
the iron and steel industry of the
country and had consistently opposed
such 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
the country's total.
The bonds paid for the Tennessee
company came from the Steel Corpor-
atoms treasury. he said. and We're as
valuable as cash. being amply Sc
cured. This method of payment was
adopted so as not To disturb the finan-
cial situation of the country.
Judge Gary declared again, as he
did last week. that Mr.. Roosevelt. then
president. and Elihu Root. then secre.
tary of state. not only sanctioned the
absorption of the Tennessee Coal and
Iron company by the Steel Corpora
ton, but held II 10 be necessary to
avert widespread financial disaster.
Mr.. Gary declared anew that finan-
cial conditions in 1907 were such that
something had TO 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 both Presi-
dent Roosevelt and Secretary Root
fully recognized the necessity for the
merger and accepted II as imperative.
n financial cataclysm was to be
ayerted