The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-03-01
AGREEMENT UPON ORE
LANDS, GAWEY FINDS
FORMER yTCE-pREsTDENT OF
STEEL TRUST WITNESS IN
DISSOLUTION SUIT.
HIS MEMORY POOR
GETS A JOLT WHEN JOHN ID.
R0CkEFELLER'S LEASE AND
HIS LETTER Is PRODUCED
BY PROSECUTION.

NEW YORK. Feb. 2s.-James
Gayley. formerly first vice-president
of the United States Steel corporation,
began today what may be a protract-
ed appearance as witness for the
government in the suit to dissolve the
big corporation. His direct examina-
ton will be continued next Wednes-
day afternoon, and II may run over
for another day.
Mr.. Gayiey, talked only about the
Mesaba ore range situation. as 1t was
just prior to the formation of the
Steel corporation in the last years OF
the nineteenth century.
He was In charge of the ore de-
partment, and became acquainted
with the Lake Superior region as far
back as 1883. Mr.. Gayley answered
number Of them the long lapse of
time had caused him to forget He
did not volunteer anything.
Rockefeller Conference.
did you and another man go to
New York in February. 1900, and
have conference with John d.
Rockefeller and r. r. Gafes?" asked
Judge Dickinson.
Mr.. Gayley remembered that there
was a conference about that time.
did not Mr. Rockefeller demand
from you seventy-ffve million tons of
ore because you had purchased that
amount in ore lands from other par
ties9" was the next question.
Mr. Gayley recalled that Mr.. Oliver
had made some sort of an agreement
that the Rockefeller company was to
supply ore properties to them. and
failing to do SO the Carnegie COM
pany had gone outside.
Naturally Mr.. Gates claimed that
he was supplying us with all the ore
we needed" the witness said.
Judge Dickinson then, referred to
the Carnegie company minutes. and
Mr.. Gayley remembered that he had
come to New York. and there had
been an argument, at which time Mr..
Rockefeller produced quietly a little
lease agreement for the Mountain
Iron company. made back In 1896.
and on this paper was endorsed an
agreement of Andrew Carnegie and
Mr. Leishman not to look to any
body else for ore lands. and to hand
over to .he Rockefeller company any
extra ore land SO bought. In those
minutes the letter from Mr.. Gayley
which read:
ITS difficult to play q game Of bluff
when the other party has the cards in
his hands. and you know IL l man
aged to save sixty million tons, which
is something"
Mr. Gayley agreed that Mr.. Gates
contention that the agreement had
been violated had some force in it.
hut ne added: ut all went around
in a circle We turned over the prop
erty to them. the property we had ac-
quired. with the understanding that
they were TO lease to us not only
this property, but property in addi-
ton, with a traffic agreement.
What Agreement Meant.
That brought Mr.. Dickinson to a
stop Traffic agreement" he re-
peated. Does that mean YOU were
to receive rebates?" Mr. Gayley did
not understand II that way. and en-
tered into a long explanation which
was to the effect that the Rockefeller
railroad wanted to transport the ore
and that arrangement was made
whereby there was sliding scale of
royalties and freight charges; the
rates could never go higher than they
were originally fixed, but they could
not go lower. because the difference
In lower rate was added to the
royalties.
There was a great deal OF sparring
with objections made by Gardenio
Severance and Richard Lindabury for
the defendants. but towards the last
Mr. GayIey admitted that thereafter
the Carnegie company announced that
II was not in the market for any out
side properties