The Birmingham age-herald., 1912-02-08
GARY REPLIES ID INJUNCTION OF THE GOVERNMENT Regrets Government Con- sidered an Injunction
 Necessary
DESTROYED BY THE
 ORDER OF BAACKES
Head of Steel Corporation Explains Fully in Regard to the Evidence. Which the Government
 Terms "Invaluable"

New York, February 7.--Judge Ebert H. Gary, chairman of the United States Steel corporation, gave out statement in explanation of the charge made by the government that certain evidence used in the prosecution of the so-called Jackson wire pools and needed to support the gov' ernments suit to dissolve the corporation had been destroyed.
 Judge Gary says that the evidence. "a trunkful of old papers," that had been be- fore the federal grand jury in New York and returned after the indictments of the pool investigation had been disposed of, was ordered destroyed by Frank Baackes, president of the American Steel and Wire company, who Supposed that all tile prosecutions growing out of the wire pools were at an end, and that the papers were no longer needed for any purpose"
 Regrets Injunction
 After expressing regret that the gov' ernment thought it necessary, or desir' able to bring it's injunction suit restrain.
 ing the corporation or its subsidiaries from destroying evidence. Judge. Gary says:
 T had never heard of the destruction Of these papers until yesterday, and upon inquiry l learn that the circumstances were as follows:
 '1n the spring of 1911 the New York grand jury, under the direction of Dis trict Attorney Wise, began an investiga- tion into the Jackson wire pools. During the course of this investigation sub- poena was issued directing the wire com pany to produce all letters and papers bearing upon the transactions under lh- auiry The officers of the wire company complied with this subpoena by gathering together from their files all the papers called for. They were very numerous and filled a large trunk. One of the officers brought the trunk full of papers from Worcester, Mass, where they were as- sembled, to the grand jury in New York Instead of being retained, in accordance with the usual custom, in the custody of the officer producing them during the re- cess of the grand jury, these papers Werc turned over to the district attorney at his request in order that he and his as sistants might have opportunity to eX- anime them As l am informed thls eX- animation was made and the papers were catalogued and their contents noted. Upon examination being completed and upon the day the indictments were filed, the trunk 1 full of papers was returned to MT. Mac 1 Veagh (Charles MacVeagh, general sollcl- l tor of the corporatlon) In response to his 1 letter referred to in the petition. Indictments Disposed Of "The indictments were all disposed of by pleas of nolo contendere and the papers were never called for again by the district attorney. The trunk remained Tn the personal charge of MT MacVeagi during all of July, and until August 70, when he left on two months Vacatlon' During the absence of N1r. MacVeagh MT Boiling, assistant general solicitor, was in charge of the office. He had been ab- sent in Europe during the month of July and part of August. At the end of Sep tember the offices of MT. MacNeagh and | MT Boiling were moved from the sev- enteenth to the sixteenth floor of No. II l Broadway. MT Boiling then noticed the trunk in one of the offices and directed 1 that inquiry be made at the offices Of the American Steel and Wire company, No. 90 1 Church street, New York city, to ascer-
 tain if the trunk could not be stored there. ! Upon hearing that it could he directed it's | removal and 1t was accordingly removed | to the offices of the wire company on
 or about September 2s 1911. This was
 dcne without the knowledge of MT. Mac 1 Veagh
 Papers Destroyed
 1 "When MT. Colton of the department of | justice applied about the end of January
 for leave to inspect the contents of the 1 trunk MT. Boiling made inquiry at the office of the wire company in New York and learned that shortly after the trunk
 was received at that office it was for | warded by direction of MT. Baackes to the offices of the wire company at Worcester, l Mass, from which it had been originally | sent. Further inquiry developed that
 after it's arrival at Worcester its con-
 tents were destroyed by order of MT. l Baackes. MT. Baaclles reports that when
 he ordered the contents destroyed he sup l posed that all the prosecutions following
 out Of the wire pools were at an end, ard that the papers were no longer needed l for any purpose"