The Washington times., 1912-03-29

Company in the two years before II
vas taken over? How did you ac-
count for those men spending SO
much developing a losing property
II presume they believed 1t could De
developed into paying property.
Practically the Tennessee Company
had never had very good record
for making money"
Chairman Stanley was anxious to
bring out something to sustain his
view that the Tennessee Company
was dangerous competitor of the
Steel corporation. He quoted the
record of advances in Tennessee
shares for a period prior to the alb
sorption by the steel corporation.
Doesn't that increase suggest that
ITS Its owners owners thought 1t good thingT
1T indicates that the stock market
side of the transaction was doing well.
don't know that II proves much about
the steel making values of the prop
critics"
Estimate on Ore.
Mr.. Munsey was asked about his gen.
eral estimate of ore land values. He
pointed out that there had been very
rapid advances In their values. The
Rockefeller ores were sold soon after
the Steel Corporation for 25 cents a
ton; later like ores In that region sold
up to S5 cents. Considering this rapid
advance in a few years, he believed his
estimates had been moderate.
-- did you own any steel stocks When
this article was written?' asked Judge
Bartlett
"Yes, but not out of proportion to my
interests in rails and other properties.
Asked about the Steel Corporations
relations to politics, Mr.. ,Munsey. said
he ht knew nothing aSoat t,rt whether IL hao
Il have been merely one stockhold-
er, and there are over 100000 of u.s." he
said II would be glad to see an "nd
of all contributions by corporations to
Mir Munsev said lie had personally
given 20 campaign funds. but he would
be glad f neither corporations nor in
dividualS were called on to contribute
to political funds: he would like to see
all such expenses borne by the Com
monWnalth.
Question Not Pressed.
Judge Bartlett wanted to draw out
some details about Mr.. Munsey's per-
81 nal contributions 70 campaign funds,
but the committee decided not to press
that line Of inquiry. Then came some
questions about the witness ideas Con-
cerning the business ard governmental
prol Ions of the nation.
Mr.. Munsey said he believed strong
and definite Federal regulation was
very NECESSARY. I'm the Standard Oil
case the Government seemed to pro-
test that 1t had crushed out competi-
tion," he observed, "and then in the
steel case it appeared that the Gov
ernment complained because the cor
poration didn't crush out competitors.
The committeeman smiled, and the
chairman asked:
And you would favor letting such
n ~ q
business in the States?" asked Mr..
Stanley.
Not the Best Effect.
"Oh, ! wouldn't call 1t fool govern
ment. But l should say the Govern
ment policy toward the railroads has
fixed rates so low that they tend to
starVe the railroads, and are not adjust
ed to produce the best effects for the
country. We ought TO have rates that
would sustain the best railroad service
in the world. | should say that there
ought to be an inventory OF present
physical values of the railroads, with
no allowenCe for good will: and that
their rates should permit them to earn
returns. l should oppose great indus.
trial concerns controlling railroads, and
on the other side would oppose COM
mon carriers controlling industrial con-
cerns.'
Not Good as Supposed.
Returning to the inventory OF the
Tennessee coal properties Mr.. Nun
sey said that since writing his ar
tlcle, he had, been informed that the
ores did not average so good as he
had supposed; on the other hand, he
had been informed that there were
perhaps 1000. 100000 tons of coal, in
stead of 1,00O, 100000 tons he had
estimated at the time of writing his
article. The coal. however. he learned
vas not of so good quality as he had
assumed when he wrote the article;
but he was not able to Judge how
far these variations affected the value
of the properties. I'm all the dis
cussions in my articles the value of
the Tennessee Coal and Iron was put
at $50. 100000. its inVentOried value.
I believed, at that time, that the prop
critics were worth the estimate I
placed On them; it was a time of
cheerful conditions and optimistic
outlook. Whether the properties are
now worth so much as l then esti-
mated, 1 don't know; If 1t will not be
offensive to the committee, may add
that | don't care'