New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-03

sending two representatives TO examine
their books" said Mr.. Gary. MY o"''
recollection is that they reported the loans
10 be very large
WAS It not easy for you to have pee"
deceived as to the necessity for purchas-
ing the company. unless you actually hhe"
the amount Moore & Schley owed ashe'
Mr.. 1ittleton.
Yes" said Mr.. Gary. II think we Neio
deceived in this respect at least pei'e'.
Moore & Schey had a much larger amount
of this stock deposited as collateral Una"
they actually possessed"
Thinks Gates Mistaken.
I Referring to the testimony given by Johh
W. Gates last week. in which he said '"a'
he regarded the taking over Of the Iehhee'
gee company as forced sale. MT. "ai'
| said
"Mr. Gates says In his testimony that t"e
board Of directors passed resolution 'i'"'
| the minority stockholders should nave '"o
right TO turn in their stock at the same
price. I have no recollection OF That IL
II is true. Il would look as though they
were rather forcing us to buy than thae VIC
were trying TO make them sell.
LAS a matter Of fact, the original mem
crandum provided that we should take '"e
minority stock at the same price as t'ie
ether. This was consummated before MI
Gates returned from Europe. | thlnk he -
mistaken in his memory OF the facts'
Mr.. Gary was also questioned concerning
the apparently phenomenal" earnings OF
the railroads In the Lake Superior ore
tl,1 NIT
CORPORATION. Figures of the earnings were
r.od % hin, and he assumed they were cor
rect
The Duluth & Iron Range kalirodn' y,
which Mr Gary Is a director, mas e0iaieN
dividends Of from 10 to 50 per cent SUI.
It's absorption by the United states 0'ee.
Company. and has had net earnings Vi
more than sS.o00.0 900 annually IN late years
Mr.. Gary explained that this was ialse'
because Of the advantage IN location OIL ,"e
reads and because they were oonheote'
Nth enormous interests which enabled the
o.r,rar,e. N keen the roads In perfect con-
ditjon and furnish transportation tacih''e'
at a minimum cost.
Mr. Stanley asked If these steel corpora
ton roads which hauled ores 10 the idNo
cid not haul coal and coke back az rate
| 1oo per cent higher than the rate chdiseu
"a haul ore from the mines. Mr.. Gary saiu
he could not deny that.
Tribute to j. p. Morgan
Renresentative Gardner asked II tnere
were not men who were also INTERESTED III
..o.ootirg the situation, who would have
sh,rad witI,-the steel Corporation the bur
den ~ relieving the situation. Mr.. Gary
ro,,;od that there were few men who TOOK
me view of a financial crisis that MI MOT
gan does
"Nr Morgan is,one man" he said VINO
an such an occasion rises and puts his own
money into other banks or into the S'ocN
Exchange to prevent panic ana trouble
ora IN helm neonle who are in financial dis-
,ros~ lie has done il time and again TINS
,,,e bo risked his money and his name TO
save tho situation.
"rbore were several other gentlemen
present AZ the conference and they were all
very much excited and believed as MT.
Morgan did. that Moore & Schley would
foil - This stock was not purchased, and
hat II they failed with these loans in the
various banks there would be very bad
situation.
"The bankers all hoped that the unlteh
states Steel Corporation could anord 10
buy this stock and 10 help out the situa-
ton. | haven't said that the United states
Steel Corporation expects to suffer ulu-
mate loss on the transaction
But why didn't some one else buy II!
asked Representative Gardner
There was no other customer for IT,
said Mr. Gary. "lf 1t had been put on the.
market II would have gone very low, ana
believe the company would have been
thrown into Bankruptcy.