The Birmingham age-herald., 1911-06-08
JUDGE GARY TELLS C0MMlT- TEE HIS SIDE OF THE BIRTH
 OF U. S. STEEL C0RP0 ATI0N
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earns exorbitantly on It's heavy tonnage through collision of it's controlled rail- roads with other railroads; that the cor poration keeps tab on the independents through a spying system, later using banking and freight restrictions and moral suasion as cudgels, if necessary. MT. Hall testified before the committed protesting that the corporation Is en- gazing in the purchase of 1000 acres of Pittsburg and Connellsville coal lands now owned by the Pttsburg Coal and Coke company, with a view to shipping coal to Gary, Ind. The letter said this was an effort to save their investment at Gary, which MT Hall characterized as an economic mistake, induced by the ca gernes of the Chicago directory to fur ther their own interests.
 Mr. Gary will be the principal wit ness again tomorrow. He said he want ed 10 state just what percentage of the steel business of the country his cor poration controlled upon it's organization, how their percentage had since decreased instead of increased; what steel com panies taken in by the Steel corpora ton were in competition with each other before amalgamation and which com panies were not competitors.
 'The Federal Steel company" says MT. Gary. "had been in existence about two years and a half I was it's president. This was some time in 1900 and Mir. Prick came to my office and suggested that the Federal Steel company could be very much improved and he believed the Carnegie steel interests were for sale. That was the first suggestion, in my opinion, which led to the organization of the United States Steel corporation. After MT. Prick had talked to me, I spoke to MT. Morgan about it and he suggested that other directors of the Federal Steel company be consulted regarding the Car negie proposition. MT. Prick talked with Fl. H. Rogers and other directors of the Federal Steel company about 1t, but nothing came of 1t at that particular time. The next thing I heard was tat w. H. Moore and others had secured an option from Mir. Carnegie for the sale of his steel plants. l had nothing to do with that option, but l knew that the Moores consulted with the First Ma tional bank of New York regarding the option and that officers of the bank con- suited with MT. Morgan. MT. Morgan semi a representative of his firm to me to discuss the utilizing of the option on the Carnegie Steel interests As present. ed to me I did not think much Of 1t and the matter was dropped Soon after that Charles M Schwab suggested to me that the Carnegie Steel company might be acquired by the Federal Steel com pany and I determined again to speak to MT. Morgan about it, knowing that such a deal would involve financial backing MT. Morgan then did not give much en- couragement.
 1T did not report to MT schwab about my conference with Mir. Morgan, but he came to see me several times afterward and about that time J. Edward simmons president of the Clearing House asso- citation of New York gave a dinner at the request of MT. Prick to bankers and men interested in the steel business. MT. Schwab, MT. Morgan and others were present and Mir. Schwab made a state ment which made quite an impression on MT Morgan concerning the Carnegie Steel company. description of It's export bus mess. It's cost of production and the like. I was not there. but have no doubt that Mir. Schwab had in mind the advantages of consolidation of steel interests.
 Talk With Bacon
 "The next thing I heard about it was on q Sunday morning not long after this dinner when Robert Bacon. then a partner in the firm of J. Pierpont