New-York tribune., 1912-02-08
REGRETS GOVERNMENT ACT
Judge Gary Explains Position Re-
garding Injunction Proceedings.
PAPERS CONTENTS KNOWN
Statement Says After Wire Pros
ecutions Their Usefulness
Was Thought Ended.

after conference between the leading
officers Of the United States Steel Corpora
tion and officers Of the American Steel and
Wire Company, held at the headquarters Of
the corporation yesterday afternoon, ex-
Judge L. II. Gary gave out the following
statement explaining the Steel Corpora
tens position with regard to the injunction
proceedings brought by the government:
regret that the government has thought
II necessary or desirable 10 Tile peuuon
Tor an injunction 10 restrain the Steel Cor
pOfailOn and its subsidiary companies from
destroying evidence winch the government
n,ght wish 10 produce In support Of its
suit against the Steel Corporation. The Pc
tltion Is based upon the single circumstance
that some time In Oclooer last Frank
BaaCkeS, vice president Of the American
steel and Wire Company, caused 70 be de-
stroyed certain old papers that had been
heIOre the federal grand jury IN New YORK
Wnen they were NesuSatlng the so-called
jackson wire pools ] had never heard or
the destruction OF these papers until yester-
day, and upon inquiry ! learn that the cir
cumstances were as follows:
IN the spring of 1911 the New York FED
erdl grand jury. under the direction OF
District Attorney Wise, began an investiga-
tton into the Jackson wire pools. During
the course Of-ihls investigation subpoena
was issued directing the wire company 10
produce all letters and papers bearing upon
the transactions under inquiry. The oftlcers
subpenas by gathering together from their
files all the papers called for. They were
very numerous and hlled a large trunk.
One OF the officers brought tho trunk ful OF
papers from Worcester, Mass, where they
were assembled, TO the grand jury room III
New York.
Instead Of being retained in the custody
OF the officer producing them during the re-
cess OF the grand jury these papers were
all turned over 10 the District Attorney at
his request, ir order that he and his as
Csz nj foTh haTra o "
anime them. As ] am Informed, this eN-
animation was made and the papers were
Cstaiogued, and their contents noted, Upon
the examination being completed, and upon
the day the indictments were filed, the
trunk fun Of papers was returned to Mr..
MacNeagh in response 10 his letter referred
The indictments were all disposed OF by
pleas Of nolo contendeTe, and the papers were
never called for again by the District At
toTney. The trunk remained in the per
sonal charge of Mr. MacVeagh during all of
July and until the 18th Of August. when he
left on TWO months vacation During the
absence OF Mr.. MacNeagh Mr.. Boiling, as
sistant general solicitor, was in charge of
the Office He had been absent in Europe
during the month Of July and part OF
August
Al the end of September the offices Of
Mr.. MacVeagh and Mr. Boiling were moved
from the seventeenth 10 the sixteenth moor
of No. II Broadway. Mr., Boiling then, no no.
ticed the trunk in one Of the offices and di-
rected that inquiry be made AT the Offices
ot the American Steel and Wire Company,
No. 50 Church street New, York City, to
ascertain If the trunk could not he stored
there. Upon hearing that II could, he di-
rected its removal and il was accordingly
removed to the office of the wire company
on or about September &, 1911. This was
done without the knowledge of Mr.. Mac
Veagh. When Mr.. Cotton. Of the Depart
ment- Of Justice. applied about the end OF
Januarv for leave 70 inspect the contents of
the trunk Mr.. 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 il was forwarded
by direction Of Mr.. BaackeS TO the Office OF
the wire company az Worcester, Mass,
from which il had heen originally sent
Further INQUIRY developed that after its
arrival a Worcester its contents we've de-
stroved by order Of Mr.. Baackes. Mr..
Baackes-reports that when he ordered the
contents DESTROYED he supposed that all the
prosecutions growing out Of the wire pools
were AT an end. and that the paDers were
no longer needed for any purpose.
Trenton, y. J., Feb T--Notice of the writ
signed Yesterday by Judge Gray, of the
United States District Court, directing GER
tain defendants named in the governments
suit against the United States Steel Cor
poration 10 show cause on Monday why
fhev should not be restrained from destroy
ing books and papers wanted by the gov
eminent in the prosecution Of its action
were served Yesterday by United States
Marshal Alcott on the Steel Corporation,
and eight OF the defendants named in the
order Marshal Alcott served the notices
personally in Newark and Hoboken az the
offices of these defendants.
The four other defendants 10 the order
70 show cause will be served with notices
by the marshals Of their districts, TO whom
the. documents were sent for service yes
tsrGav