Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1911-06-09
CARY AGAIN TEsTIFIEs
BEFORE STEEL PROBE
Director of U. S. Steel Cor
poration Resumes His Evil
dence Before Committee
cBy Associated Press. }

WASHINGTON, June Judge E. H.
Gary, executive head of the United
States Steel, corporation, was a witness
again today before the Stanley steer
trust committee of the house.
Mr.. Gary was Intercepted further
by Representative Littletone on the alb
sorption of the Tennessee Coal and
Iron company blythe steel corporation.
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 flnd-
ings of the bureau of corporations with
regard to the steel trust, upon which II
was to determine whether court pro-
ceedings should be instigated
81 have read several reports" said
Mr.. Gary. which are reported to retlect
administration views, but l have apso.
lutely nothing to say concerning them.
Testimony of great interest to the
cities of the Ohio and Mississippi valleys
came out at the hearing today, Wheh -
was declared that offers were being mace
to destroy water transportation 1or coai
down the Ohio and Mississippi rivers
now of great benefit to the INDUSTRIES III
cities along these rivers.
statements have been made by SEN
ator of the United States who has per-
sonal interest in the Pittsburg Coal ana
Coke company" said Chairman Stanley
that the Monongahela River company Is
now under the control of the Plttspurs
Coal and Coke company; and that there
is now pendinga proposition to exchange
the securities of these two companies for
the bonds O. the United States Steel cor
poration, with the inevitable result that
the Unio river will cease to be the me-
dunn of traffic for the carriage or TINS
tonnage of COAL"
Members of the committee and attor-
neys for McGary asked Chairman stan
ley to name the senator, and Mr.. STANLEY
responded by calling to the stand MI
Hall. former president of the Pittsburg
stock exchange. Mr. Hall related the
history of the two companies and said
that the steel corporation had 20 years
contract for coal at a price that repre-
sented loss to the mining company
deal is pending, he said for the transfer
to the steel corporation of a large acre
age of coal to be paid for in bonds guar
anteed by the Steel corporation.
'sThere is no doubt in my mind, Mr..
Hail declared that the deal means the
ultimate shipment of all coal in our dis
trict by rail and the eradication of water
competition. Senator oliver agrees with
this view
''Mr. Half has offered no evidence that
we are egetting control of these compa-
MES" said Mr.. Gray.
your contract is better than owner
ship would be-" replied Mr.. Hall; 'it is
cheaper to get the coal at your price
than to own the companies"
Mr.. Hall testified that the Pittsburg
Coal and Coke company known as the
''rail company IN the Pittsburg coal
field, controls the Monongahela company.
which ships by river. 1--WE have no con-
trolling interest in either one of these
companies" said Mr.. Gary. I'VE have
no interest in them other than this con-
tract" he added.
ROOSEVELT FAVORED DEAL.
Judge Gary again today declared that
President Roosevelt and Secretary of State
Root not only sanctioned the absorption
of the Tennessee Coal and Iron company
by the steel corporation, but held it to
be necessary to avert widespread financial
disaster.
Mr.. Gary declared anew that financial
condition in 1907 were such that some
thing had to be done to prevent panic.
The conference at the White House. he
declared, was the final step in the cam
paign of prevention, and he AIDED that if
the administration had declined to permit
the combination of the two big steel
properties he would have opposed ii in
steel corporation He insisted that the
impression on his mind and the minds
of those with him was that both Mr..
Roosevelt and Mr.. Root fully recognized
the necessity for the merger and accepted
1t as imperative If a financial cataclysm
was to be averted.
In reopening the line of questioning
with reference to the Tennessee Coal
and Iron company. Representative Lit
Teton sought to get from Mr.. Gary an
understanding as what phraseology they
could agree upon TO express the atti-
tude of President Roosevelt to the trns-
action, which Mr.. Gary and Mr.. Frick
proposed to him in 1907
Il should say, said Mr.. Gary that
it was tacit acquiescence on the part
of the president"
Mr.. Littleson then took up the visit
to the White House made by Mr.. Gary
and Mr.. Prick
IF President Roosevelt and Mr.. Root,
then secretary of state, had objected to
this transaction" suggested Representa-
tive Bartlett, of Georgia, would the
United States Steel corporation still have
purchased the Tennessee Coal and Iron
company"
IT think surely would have voted
against the purchase" Mr.. Gary re-
Piled
You were at the White house then"
Mr.. Little ton asked, seeking the ap-
prevail of the administration of the pro-
posed acquisition by the steel company
of Tennessee Coal and Iron stock?"
THAT is not quite correctly put" an
swered Mr.. Gary. 1T is hardly accurate.
We sought to acquaint the government
with all the facts before we proceeded.
1 knew perfectly well that Secretary
Root had told the president and that
the president understood that he had
no right to approve the sale. But it
seemed clear to me that if we should
purchase the property under the peril
Gus conditions in Wall street, as ex-
planned to the president, that there
ought not to be any action on the part of
the government to enjoin the transac-
ton"