Arizona republican., 1911-06-03

Washington, June 2.-Elbert H. Gary, chairman of the United States Steel Corporation directorate, told the Stanley steel trust investigating com mittee today that his corporation stood behind J. P. Morgan in avert ing a disastrous financial uprising in 1907
 He insisted challenging the state ments of John w Gates before the committee, that the purchase by the Steel Corporation of the Tennessee Coal and Iron company at that time was made at a price more than it was worth for the express purpose of preventing the crash of the New York banking firm of Moore & Sclley.
 Mir. Gary related a dramatic story of the momentous events which pre- ceded the absorption of the Tennes- see concern. He described how he and Henry c. Prick, at the instance of Morgan, had revealed the plan of buying the company at a price greater than it's value, to President Roosevelt and Mir. Root. then secretary of state. He told how he had concluded. after their interview with Roosevelt, that any government prosecution of their act would have been an outrage
 PREDICTS GOVERNMENT CON-
 TROL.
 MT Gary made many surprising statements during his eight hours eX- animation, but none more startling than his declaration that government control and publicity of corporations in this country must come. He said that. through the American Iron and Steel Institute, the heads of the steel industry were trying to steer a course between the Sherman antitrust law, which he characterized as archaic on the one hand, and the old-time method of destructive competition on the other. in order to operate for the public welfare.
 THE WIDEST PUBLICITY.
 MT. Cary announced to the commit tee that he wanted everything known concerning the Steel Corporation, and, more than all, he pleaded for some responsible government source to which a great corporation could ap- peal for guidance in the conduct of its business. He agreed to furnish the committee so much as it wished 10 to know that he will be recalled when it meets again on Wednesday.
 Others who have been summoned to appear are W. S Dickson of the cor poration and John Lambert of the Re public Iron and Steel company.
 The acquisition of the Tennessee Coal and Iron company by the United States Steel corporation was taken up by the committee this afternoon. Rep resetnative Littleton conducted the in quiry for the committee. MT. Gary was permitted to make a full state ment regarding the transaction.
 Several offers" said he, had been made to LIS by persons representing the Tennessee Coal and Iron company to sell at different times prior to the fall | of 1907. The United States Steel cor ] poration had always been opposed to | the purchase and said so on various l occasions.
 TAKING OF TENNESSEE.
 Early in 1907 MT. Morgan sent for l me and said that George kessler who 1 had purchased stocks of the Tennes- ! see Coal and Iron company outside the i Grant B. Schley syndicate. had ap- | preached him with the statement that ! the Tennessee Coal and Iron company | could be purchased at 30. I told Mir | Morgan that il was not worth having | at that price. MT Prick later prof i fered the same opinion and the matter . was then dropped. I believe at that | time Morgan said that Kessler repre- ! scented only himself and not the mem-s bers of the Schley syndicate. But | about October, 1907, Mir. Morgan asked | me to come to his bank and he told | me that Grant B.. Schley, managing | director of the Tennessee Coal and | Iron company, was much in need of | money at the bank of the firm of | Moore and Schley.
 TO SAVE MOORE 6 ScHLEY
 'I think I saw Schley then. but the | business finally resulted in my ac- | commodating Mir. Schley with a loan | of S1.200.00O par value of United | States Steel second bonds and taking | from him an agreement to return | these bonds. anG I received as security | for the fulfillment of that agreement | S2. 900. coo par value stock of the Ten i, nessee Coal and Iron company. The | agreement provided that if the s2,000 i GOO Tennessee Coal stock should re- main with the United States Steel l corporation it was an accommodation | to Schley. and at his very urgent re- quest and because he said it was ab- | solutely necessary to protect him from | financial trouble. That loan, you see,