The Washington times., 1911-06-07
BANK COMBINES
WORST MENACE,
ASSERTS GARY
Witness in Steel Hearing
/ Admits Power of Nor
gan's Money.
Continued from First PaRe1

nessee Coal and Iron Company by tn,
United States Steel Corporation durtrI
the panic of 1907. the committee seemed
surprised TO hear Judge Gary voluntee,
mat Mr.. Roosevelt's consent to the
merger was a bit of constructive
craftsmanship"
1ou mean II was constructive fol
me United States Steel Corporation, y
suggested Mr.. Littleton, satiricaIly.
No, I don't think So" answered
Judge Gary.
Yes. the Presidents consent was both
destructive and constructive" said
chairman Stanley. 1T was destructive
OF the law, and it was constructive OF
the Steel trust
No Violation.
Judge Gary disagreed, and said that
ne Old not think that the law had been
violated when the President, after the
memorable White House conference,
mad told Mr.. Gary and Mr.. Frick to go
ahead with the merger, and the result
OF the conference had been Immediately
telephoned to New York
The committee pinned the witness
down to an admission that the Tennes-
see Coal and Iron Company, and those
holding its securities, might have
pulled through with loan of securi-
ties by the gigantic United States Steel
Corporation. Instead. Judge Gary said,
the trade had finally been made where
bv the securities of the United States
Steel had been exchanged for those OF
the Tennessee company and the banks
holding the latter securities, who had
been calling take out Tennessee take
out Tennessee" were satisfied with the
exchange
Today'S Hearing.
When todays hearing began Chair
man Stanley called Mr.. Gary's atten-
tion to the published report that the
United States Steel Corporation had
acquired, only a few days ago. a 1900
acre tract of coal and coke Sand in the
Pittsburr district.
1t is true" said Judge Gary, that
we have decided to bUv from the Pitts
burg Coal COMPANY and the Mononga-
heia Company 1000 acres Of Coking
coal. We need this land and on recon-
mcndation of oCr local agents in the
purchase"
Judge Gary aid not agree With Chair
man Stanley's inference that his cor
poration was obtaining q monopoly on
the lands in that section.
RevertinE 20 the panic of 1907. Chair
man Stanley asked:
is il not true that George l. Wilt
neV, Of the Hostetter Coal Company. a
competitor of the Frick Company, had
borrowed large sums and that his stock
went down from 100 to s20O a share.
pressed by the bank in which Messrs
Frick and Melton had principal coll
troll? Did this not force Whitney's COM
nanv into the hands of the Frick con-
GERM"
Gary's Reply.
Judge Gary said that he understood
that matter had been threshed out IN
the courts and that the subsidiary Of
tie United States Steel Corporation had
won.
Lower courts are often reversed by
the higher tribunal observed Chair
man Stanley We just want to get
these things into the record"
The hearing was suddenly interrupted
here by a statement by Representative
Stanley that he had been informed by n
United States Senator that the United
States Steel Corporation was attempting
20 gain control of the Pittsburs Coal
Company and the MonOngahela River
Coal Company.
Judge Gary heatedly denied it. and de-
manded the name of the Senator So
the committee.
Hall Takes Stand.
Chairman Stanley interrupted the
Gary testimony to call to the stand
Robert c. Hall, of Pittsburg, former
president Of the Stock Exchange
1T is not necessary for the Steel Cor
poration 10 take over these two COM
panies," said Mr.. Hall. THE Steel Cor
poration has bought a contract from the
Pittsburg Coal Company, which ties up
the output of the Monongahela COM
pany for twenty-five years l under !
stand they pay 81 and s1.O7 per ton for |
the coal, and 1t is we'll known that il
costs the Monongahela company S1.26 n |!
ton to produce IT. Therefore, It is better |
for the United States Steel Corporation |
10 hold this contract than to own out |
right the Pittsburg and MonongIheia !
companies"
Mr.. Hall declared that he had no in
terest in any steel industry, but that .
the vital question today in Pittsburg is !
the further development of it's great .
coal fields or the sitting of some of it's .
industries.
divers Name Brought In.
The name of Senator Oliver was
brought into the testimony when Chair
man Stanley explained that he did not
mean to put the Senator in the attitude .
of charging the United States Steel Cor
poration with an attempt to absorb the
two companies, but that the facts prob
ably were as outlined by Mr.. Hall.
Mr. Hall explained that the twenty
five year contract with the Steel Cor
poration had been made in 1905, when
the Pittsburg Coal Company had to
raise S25,OOO,0e0 in a hurry. He declared
that since this contract the output of
the Pittsburg and Monongahela COM
panies was being shipped mainly by
abroad, whereas the latter company
formerly used the river transportation
exclusively.
Gary Resumes Stand.
Judge Gary then resumed his testi-
mony and was taken in hand by Rep
Littleton, who began to
QUIZ Judge Gary as TO the absorption
of the Tennessee Coal and Iron Com
pany, effected after Mr.. Gary and MIR.
Frick had consulted at the White
House with President Roosevelt and
Secretary Root.
Would you have purchased the Ten
nessee Coal and Iron Company If Presi-
dent Roosevelt had not given his tacit
Judge Gary was asked.
Il don't think l would have" was the
answer. !
THE President has said that he was
told that unless the merger were al
lowed an important firm in New York
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