The Washington times., 1912-03-29
PROBERS
SEEK DATA ON
ORE ESTIMATES
Call Frank A. Munsey In
I Reference to Magazine
Article.
Continued from First Page.)

at 81, ,7S2 ZOO and acknowledged that
the details of fact were afforded to the
writer by the steel people themselves.
Mr.. Munsey told the commission that
the figures in his article were given him
by the steel officials. II talked with
many men familiar with steel, financial,
and other related Matters he added.
Il used the figures, substantially as the
| steel people gave them to me-"
who Of the steel Corporation people
examined the article before it was
published?"
Nobody, 20 my knowledge"
. Have any Of them ever suggested
that the article was inaccurate?" asked
Judge Bartlett.
None that I know Of" replied Mr..
IF not substantially correct your at
tention would doubtless have teen call
ed to 1t for the purpose of correction?"
assume If 1t had been grossly in
accurate the Steel Corporation would
have called my attention to the fact"
/ -. lt you had made an error Of $i0,000,-
600 or $70,00O000 in estimating par
would have been called to It" On page
8C4, is n table showing an item of
unmined ores, 1.1S21152OO tons in the
Lake superior region. Where did you
get that tonnage?'
From the Steel Corporation"
Talked With Schwab.
"Where did you get the estimate of
w SSh'S pei 'oil, dS tlle NdIue OIL lne
ore?'
'I talked with many people familiar
with steel and iron matters, Mr..
Schwab and others"
Examined the Steel Corporations re-
ports?"
"I presume I did. have not been
able to find the original data from
which the article was written"
Chairman Stanley observed that this
Item Of ore values amounted to about
half the total value of the corporation $
properties, and wanted to know on
what authority the estimate was given.
Mr.. Munsey said the 60-cent estimate
was based largely on the price which
the corporation was then paying for
the leased Great Northern ores. II
was assured that these ores were more
valuable than the Great Northern ores,'
he added.
Guided by Opinions.
Were you ever told that the Great
Northern ores were about all the Lake
Superior ores not owned by the Steel
Company"
Il think that was generally UNDER
stood at that time; my estimate was
guided by the opinions of fnanciers,
steel people, engineers, and others"
ON what did you base your conclusion
that the Tennessee Coal and Iron ores
at Is cents a ton were worth $1O5 900, 900?
Whence did the estimate of is cents a
ton on those Southern ores Gomez"
From conversations with people IA
mlliar with the properties, and from the
price paid by the Steel Corporation
Then, too, that was written in a
time Of optimism. James J. Hill had es-
timated that $500, 100000 was going to
be needed for expansion, Of our rail.
road system, and the probable demand
for steel products seemed likely to be
very large, I talked with Messrs.
SGhwab, John w. Gates, and many
Nj. Stanley called attention to the
Steel Corporations detailed statement
of its ore holdings; as given to the
committee. Did they give you any
such extended statement as that?" he
asked.
Il don't now recollect l got the ton
mage figures from the Steel Corporation
and It is my recollection that the 50
cents per ton estimate was made up by
myself from talks with various people"
Judge Bartlett wanted to know what
official of the Steel Corporation made an
estimate, referred to in the article, that
the corporations contract for the Hill
ores was worth $500, 100000 to the com
pany.
Based on officials Remark.
Mr.. Munsey inquired whether he must
answer, saying that the estimate was
based on a remark of an official of the
company. "If | had not felt that that
was a private conversation" he said,
81 should doubtless have used the name
in my article. l feel that one should not
publish a casual statement thus made.
! dislike bringing in the name, but, OF
course, gentlemen. / am in your hands y
After some further discussion, the
committee insisting, Mr.. MLpsey an
swered that George F. Baker had given
him that estimate. MIR. Baker is di-
rector of the corporation.
Answering further questions, Mr..
Munsey said that ores were being used
rapidly, and that fact involving, of
course, the prospect of ultimate .eX-
hauStlon of easily accessible ores, had
an important bearing on their values.
Mr.. Stanley noted that the Tennessee
Coal and Iron ores were estimated at
10 cents ton, while the Hill ores were
put in at 10 cents, and wanted to know
why there was such a difference in
values.
From Outside Sources
THE figures as to Tennessee Coal and
Iron Company were not afforded to me
by the Steel Corporation people. / had
to get them as accurately rs possible,
from outside sources" Mr. Munsey said
assuming that the available ores in
the Birmingham district were pre-
empted by the absorption of the Ten
nessee Coal and Iron, that absorption
would have been an insurance against
competition, would 1t nOt?' asked Mr..
Stanley.
Before an answer was given, Judge
Bartlett supplemented the question by
reading from the record concerning the
control of the Birmingham ores, to
show that there were no more ores now
available in that region which a com
peting concern could use. The question
was not answered, because the COM
mittee members Contented themselves
with the quotations from tn record.
Mnnopoly Element Discussed.