Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1911-06-06
PANIC AvERTEO
BY STEEL TRUST
GARY DECLARES CORPORATION
BACKED MORGAN DURING
1907 UPHEAvAL.
SAVED GREAT NEW YORK BANK
Purchase of Tennessee Firm Made at
Sacrifice.-Question of Mesaba
Range Control Brought to
the Front.

Washington, June 3. - nat IHo
United States Steel corporation stood
behind J. Pierpont Morgan in averting
a disastrous financial upheaval In 1907
was the statement of Ebert Fl. Gary,
chairman of the directorate OF the
Steel corporation. before the Stanley
steel trust investigating committee.
He insisted, challenging the state
ments of John w. Gates before the
committee, that the purchase by the
Steel corporation of the Tennessee
Coal & Iron company at that time was
made at price which was more than
it was worth for the express purpose
of preventing the crash of the New
York banking firm of Moore & Schley.
He told in detail how he and Henry
C. Frick, at the instance of Mr.. Nor
gan, had revealed the plan of buying
the company at a price greater than
it's value to President Roosevelt and
Mr.. Root, then secretary of state. He
interview with Mr.. Roosevelt that any
government prosecution of their act
would have been an Outrage"
Mr.. 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 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.
An effort was made to bring out
the relations of the Steel corporation
to the transportation of ore in the Me-
saba country.
The discussion as to the activities
of the steel company in Minnesota en-
braced the ownership Of the ore beds.
the conduct of the railroads, alleged
discrimination by them in the matter
of freight rates. and statement that
the Steel company. together with the
Hill roads, controlled the output Of ore
products originating in the lake region.
Judge Gary told the committee the cir
cumstances surrounding the leasing by
the Steel company of ore properties
owned by James J. Hill or controlled
by him through either the Great North.
ern or the Northern Pacific or third
corporation which was not named.
Judge Gary was Intercepted rela
tive to the operation of the Duluth.
Mesaba & Northern line and other
roads, with view to disclosing that
the company roads were operated to
the great disadvantage of the competi.
tors. Referring to statement made
by Judge Gary that the socalled "in.
dependent companies" control ore
holdings on the Mesaba range, Repre-
sentative Young of Michigan asked
what proportion of the ores there were
produced by the corporation and what
proportion by competitors.
Judge Gary replied that of the out
put in the Mesaba range in 1909, 65.6
per cent was produced by the Steel
company and 34.4 per cent by it's com.
petitOrs.
Chairman Stanley asked as to al
legged excessive profits of the Steel
company roads in the Mesaba regions.
He quoted profits all the way from 40
to 165 per cent, amounting in the years
1906, 1907 and 1908 to nearly $4,000.
900.