The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-06-03

needed by Moore 4 Schlcy when the
Tennessee Ccal and Iron syndicate was
composed Of men OF large wealth. Judge
Gary intimated that some members OF
the syndicate may have insisted that Mr..
Schley live up to the syndicate agreement
and refused him permission TO sell his
stock unless all the syndicate holdings
were disposed of at the same time.
One OF the committeeman wanted 70
know II there was not some one in the
syndicate that Mr. Morgan could have
influenced TO share the burden with the
United States Steel Corporation.
He must have influence with some OF
the members" suggested this committee
man.
which one. for instance?' asked Judge
Gary.
Well. Oakleigh Thorne.- was the reply
John W. Gates. suggested another
Representative. and Judge Gary smiled
broadly.
but don't understand said Chair
man Stanley. why the Steel Corporation
had no partners in misery in regard TO
this transaction"
MORGAN THE ONE MAN TO RISE TO AN
EMERGENCY.
Il think YOU have been in trouble"
said Judge Gary. and have noticed that
most OF the people surrounding IL run away.
Now Mr.. Morgan ia the one man who on
such an occasion will rise to the emergency
and put his own money in tho banks and
IN the Stock Exchange to prevent trouble.
He has given the Use OF his name and
credit on many occasions TO help others,
On this occasion. however. many bankers
IN New York had gathered about Mr.
Morgan and had obligated themselves.
and they hoped that the Uuited Stats
Steel Corporation could afford TO buy
this stock and help the situation and
finally recoup itself from a loss.
Mr.. Gary did not intend to say that as
the result Of this transaction the United
States Steel Corporation ultimately would
sustain a loss. He hoped that the cor
poration in the end would come out at least
even III the transaction. What he did
contend was that the corporation when
1t made the purchase had paid 100 for u
stock that WAS worth about Is.
But why should you alone make q
present to Moore 4 Schley?" asked one
OF the investigators
Because there was no other customer
for that stock" replied Judge Gary
III it had been put on the market it would
| have gone down below 65. | believe the
company would have been in bankruptcy
before now il We had not bought the
stock at that price"
If you were the only people who could
take the stock. suggested Representative
Gardner OF Massachusetts. 1T might pay
you in the end to do so"
That" said Judge Gary. lis the exact
answer"
TO WASHINGTON TO SEE ROOSEVELT.
Judge Gary then told Of his trip to
Washington on board "a special train with
| Mr. Frick They had an appointment
! with President Roosevelt at 10 o'clOck in
the morning. but conditions were AZ
critical in New York city that they called
| at the Executive offices a: o'c.ock and
asked if the President would not make an
exception TO his rule and see them earlier
Mr. Loeb went over to the White House,
where the President was eating breakfast
and returned with Mr.. Roosevelt. Judge
Gary and Mr.. frick presented the situa-
tion 10 Mr.. Roosevelt and he said that he
| would like to consult with the Depart
ment Of Justice. Attorney General Bona
parte was out Of the city and MIR Roose-
Welt summoned Secretary of State Root
| The President asked Mr. Root = opinion
in regard to the taking over OF the Ten
nessee Coal and Iron Company and Judge
Gary said that the then Secretary OF
State concurred in their views as TO its
propriety.
! Four days after the interview with
| President Roosevelt Judge Gary recorded
what had transpired az that inter, lew in
| a letter TO Secretary of State Root His
record of the interview was substantially
the same as that which President Roose-
welt made public, to the effect that the
Steel Corporation had been urged to p,,r-
chase the Tennessee Coal and Iron stock
as means OF avoiding a failure. that the
corporation did not want the Tennessee
PROPERTY and that il would be of little
benefit 10 them but that they felt obli-
gated TO do everything possible to avert
panic.
Il understood the President to say
said Judge Gary. that while he would
not and could not legally make any bind
ing promise or agreement, he did not
hesitate 10 say from all the circumstances
as presented he certainly would not
advise against the proposed purchase
| Secretary Root replied in letter
acknowledging the accuracy Of Judge
Gary's recollection Of the intervie lew, and
the Gary letter was forwarded by Mr.. Roo,
| TO President Roosevelt. who In turn sent
it to the department OF Justice TO be re,
corded.
WHAT ROOSEVELT SAID
Judge Gary recalled that Mr. Roosevel
said at that interview that he had no riph,
to tell them whether they could buy IN,
Tennessee Coal and Iron stock and tina,
as he understood II Judge Gary and Mr.
Frick merely wanted TO know what the
disposition Of the President and Of the
Department OF Justice would he. Judge
Gary added that Mr.. Roosevelt seemed
particularly pleased by the assurance
they gave him that the percentage Of the
Steel Corporation Is control ov or the trade
in this country had materially decreased
since il was organized Mr. Roosevelt
remarked 10 them that he did not think
that anybody would criticise him for
saying that he did not feel like ohjecting
TO the purchase
This was practically the cn,ire history
Of the Tennessee Coal and Iron transac-
ton Judg. Gary observed that he knew
that tho chairman Of the investigating
committee, Representative Stanley, felt
that the steel Corporation officers had
misreprosented the facts TO President
! Roosevelt
Il want to satisfy the chairman. said
Judge Gary, that we did not make any
miSreprcsen'ations believe that every
one connected with tho United States Steel
CORPORATION cares more for his conduct
reputation and character than he does for
tho making Of few dollars
Chairman Stanley acknowledg III at
he had read of Ia" Statements in regard
to the absorption of the Tennessee Coal
and Iron Company bv the United States
Steel Corporation with great grief and
profound astonishm"nt.
COAL AND IRON COMPANY NOT BOrOHT ro
SUPPRESS COMPETITION,
| I,,d1a Gary threW ont N strnpo ipt,p,,