The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-03
TELLS Of
| BUYING STOCK
TO STOP PANIC
Head Of Steel Trust Claims
Acquisition of Southern
Rival Saved Country
From Disaster.
SAYS ROOSEVELT
GAVE HIS CONSENT
Believes the Government
Should Control the Bus
mess of the Corpora
tion and Fix Prices.
SAYS ROOSEVELT
GAVE HIS CONSENT

IL WASHINGTON. June 2.-Elbert H..
II Gary. chairman OF the United States
II Steel corporal tion directorate. told the
Stanley steel investigating committee to-
Il day that his corporation stood behind J.
p Morgan in avertins disastrous finan-
ciel uphcaval in 1907
He insisted. challenging the statements
Of John ". Gates before the committee
tbat the purchase by the steel corpora
tIon OF the Tennessee Coal & Iron com
pany al that time was made at the price
moro than II was worth for the express
purpose OF preventing the crash of the
New York banking firm OF Moore L
Schlcy.
Mr Gary related a dramatic story of
the momentous events which preceded
the absorption of the Tennessee concern.
He described in detail how he and Henry
c. Frick, at the instance of Mr Morgan.
had revealed The plan OF buying the COM
pany at a price greater than its value 10
President Roosevelt and Mr.. Root then
secretary OF state. He told bow he had
concluded after their Interview with Mr..
Roosevelt that any government prosecu-
ton of ;helr act would have been an
"outrage."
Makes Surprising Statements.
Mr.. Gary made many surprising state
ments during his eight hours eXamina-
tion but none more startling than his
declaration that government control and
q publicity OF corporations in this country
must come.
I He said that through the American Iron
ard Steel Institute the heads Of the
I steel Industry we're trying To steer Il
course between the Sherman anu-trus,
on the one hand and the old time meth
|, Oh of destructive competition on the
X other IN order TO operate for the public
j welfare.
Mr. Cary announced to the committee
that lie wanted everything known con-
corning the steel corporation and more
than all he pleaded for some responsl-
bio government source 90 which such d
necessary great corporation could appeal
1 for guidance in the conduct of It's busl-
ness. He agreed to furnish the COM
mittee with so much it wished to know
that he VIII be recalled when II meets
4 again Wednesday
Others who have been summoned to an
pear are w. S. Dickson Of the steel coz
poration and John Lambert of the Re
public Iron & steel company
Acquisition of Tennessee Company.
The acquisition of the Tennessee Coal
Iron company by the United States
steel corporation was taken UP by the
N committee this afternoon. Representa-
tVe littleton conducted the inquiry for
the committee Mr. Gary was permitted
70 make full statement regarding that
Several Offers" said lie, had been
made TO us by persons representing the
yIennessee Coal d Iron company to sell
AZ different timeg prior 10 the fail OF
1907, The United States Steel corpora :
tioh had always been opposed to the pur-
chase and said so on various occasions
II Early in 1907, Mr. Morgan sent for
II me. and said George Kessler vino had
K purchased stocks of the Tennessee Coal
IRON company outside the Grant B.
schley syndicate. had approached him
WIN the statement that the Tennessee
company could be purchased al l30.
loid Morsan 1T was worth having at that
Mr.. Frick later proffered the same
q option and the matter WAS then dropped.
Summoned by Morgan
A ~ believe at that time Mr. Morgan
said that kessler represented only himself
S'id not any of the members Of the
I iSdl inSnley syndicate. But about October 25.
n iso' Mr.. Morgan asked me to come to
ns bank and told me that Grant e.
N ochley, managing director of the Tennes-
see company was In need OF money TO
n Schley. -
q Il think saw Mr.. Schley then. but
cnn, cne business finally resulted in my ac.
sl'zOo.oOo par value OF United States
= steel second bonds and taking from him
q an asreernent TO return these bonds. and
81 ol that agreement 50. 000, ,0O0 par value OF
me lenn"ssee Coal Iron company. The
.sfeemen' i provided that if the loan was
hoi received by April 23 1905 the owner
ship of the So, 900 OO0 Tennessee Coal
:, STOCK should remain with The United
IN states Steel corporation.
n ~ vas an accommodation TO Schey
~ q. ms very urgent request and because
" ne SAID II was absolutely necessary IL
~ pIotect him from financial trouble. That
ioan. you see. was taking Tennessee Coal
9 IRON on the basis Of sixty"
III -nt' Gary admitted this loan aercemen,
q 10 nc committee
6 About November . 1907. amid = fiDan.
cal panic. the matter came np again
~ ne Trust Company Of America was m
difficulty,
3 Trust Company in Difficulty.
81 John W Gates testified last week tha,
tnS oank was responsible for Morgan's
" snorts 10 sell the Tennessee company &c
tne steel corporation 10 save the trust
81 COMPANY which had loaned too heavily
III Mr. Gary referred TO the possibilit, ,
vi aneh OF the suspension Of many banks
y anu Iailure OF many persons. He told OF
81 lne conference with Mr.. Morgan. Ioui:
Il pass pa Ledyard counsel for Colonel Oliver
VI rayne of the syndicate that purchasrC
81 lhe controlling interest in the Tennessee
- company
81 Nh. Cary said Mr.. Ledyard told hin
MoorG d Scbley were largely Indebted tr
Mr. Payne and had many OF his srCuri.
ties. They had deposited AS securliie,
Oh their Indebtedness Of $50 OOe 600 man,
u snorcs of the Tennessee Coal & Iron stool
- WIN manN banks.
Y Tie banks had called these loans.
n ss.,lu MI Gary. and We're Insisting tha
moore q Schley lakc up the Tenncsse,
y Ips,, q iron stock, II was not salable
VIII mol say that II had been manipu
NJ ,hleo. nuT 1t was stock that had been
III ,,nrouEh period Of many years. raise,
rom low 10 a hiel price: 1t had bee,
n Continued on Page sevcEs