Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-06-08
Executive Head of Steel Cor
poration | n t e rrogated
Concerning Absorption Of
Tennessee Company.
ROOSEVELT
AND ROOT APPROVED
Witnss Declared White
House Gave Acquiescence
in Purchase Before Com
pany Made Deal.

| fSSAAJ ANA0N~ A~~SkAs
| Washington, D. c., June 7.- Judge
q. H. Gary. executive head of the
United States steel corporation. was q
witness again today before the Stanley
steel trust committee of the house.
Mr.. Gary was interrogated further by
Representative Littleton. on the alb
sorption Of the Tennessee Coal and
Iron company by the steel corpora
ton.
| Before the committee met, Mr.. Gary
was asked If he had any comment to
make on the report that the govern
ment had determined to review the
| findings of the bureau of corporations
| with regard to the steel trust, upon
| which 1t was to determine whether or
not court proceedings should be insti-
tuted.
Il have read several reports" said
Mr. Gary, which are reported to re-
| fleet administration views, but / have
| absolutely nothing to say concerning
| them"
Charges alleged to have been made
the u S. steel corporation is en-
/ NSd w 6oI COlIAOt VI W0L0A
4 transportation in the Ohio river
Through absorption of the Pittsburg
1 coal and Coke company and the Mon.
ongahela river company were pre-
sented to the committee today by
Robert c. Hall of Pittsburg.
| Mr.. Gary, replying to questions by
| Chairman Stanley denied that the
stee; corporation had any such planS
/ {n ,,,jr $ot1 &c "a
by senator of the United States who
has personal interest In the Pitts
burg Coal and Coke company" said
Chairman Stanley, that the Monon-
gahela River company is now under
the control of the Pittsburg Coal and
Coke company and that there ts now
pending proposition to exchange the
securities of these two companies for
the bonds of the U. 8. steel corporation
with the inevitable result that the
Ohio river will cease to be the medium
OF traffic for the carriage of this tom
mage OF coal.
Witness Tells Of Coal Deal.
Members Of the committee and at. ,
torneys for Mr.. Gary requested Chair
man Stanley to name the senator.
Mr.. Stanley responded by calling Mr..
Hall to the stand. The witness said
he was former president of the Pitts
burg stock exchange. He related the
history of the two companies and said
the steel corporation had twenty
five year contract for coal at price
that represented loss to the mining
company. Deals are now pending, he
said, for the transfer to the steel cor
poration of a large acreage Of coal, to
be paid for in bonds guaranteed by the
steel corporation.
There is no doubt in my mind"
Mr.. Hall declared, "that the deal
means the ultimate shipment Of all
coal from our district by rail and the
eradication Of water competition.
Senator Oliver agrees with this view"
"Mr Hall has offered no evidence
that we are getting control OF these
companies" said Mr.. Gary.
Your contract is better than owner
ship would be-" replied Mr.. Hall. II
Is cheaper to get the coal at your
price than to own the company"
Mr.. Hall testified that the Pitts
as the rail company" in the Piitsbura
coal field, controls the Monongahela
!, river company, which ships by river,
I'VE have no thought Of acquiring
control or an interest in either ol
these companies" said Mr.. Gary. eve
have no interest in them except thia
contract for the purchase OF certain
amount of steam coal"
Defends Tennessee Purchase.
Judge Gafy again today declared
that former President Roosevelt and
former Secretary Of State Root not
only sanctioned the absorption of tha
Tennessee Coal and Iron company by
the steel corporation, but held 1t to
be necessary to avert widespread fin,
ancial disaster.
Mr.. Gary declared anew that f1nan-
cial conditions in 1907 were such that
something had to be done to prevent
panic. The conference at the white
house, he declared was the final step
In the campaign of prevention and he
added that If the administration had
declined to permit the combination oi
the two big steel properties, he would
have opposed 1t in the steel corpora
| ton. He insisted that the impression
made on his mind and the minds oi
those with him was that both Mr..
| Roosevelt and Mr.. Root fully recog
nized the necessity for the merger and