Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-05-28
Defense Introduces Testimony
to Prove This Fact at Trial
of Suit 10 Dissolve Steel
Corporation.
EXPERT ACCOUNTANT
ON WITNESS STAND
Gives Evidence Tending to|
Show Brokerage Firm Held.
Majority Of Stock in Tennes-
see Coal & Iron Co,

fsy uoaanc IoupnAl SPECIAL lrkssp wiHsi
New York. May 2f--rostlmony 20
prove that Judge Elhert 81 Gary.
chairman OF the United states Steel
corporation. and II. G. Ffick. "a dlrcc
ter. did not deceive President Roose-
welt. as alleged by the government
when they told him II WAS necessary
for the corporation to take over the
Tennessee Coal and iron company IN
order To stop the panic Of 1907, was
introduced hy the defense today in
the government suit 10 dissolve the
corporation as an Illegal combination.
The testimony wax given by Thomas
W. Joyce a security clerk IN the Of
flee Of J. r. Morgan and company.
According to the government COM
plaint Gary and l'riek misrepresent-
cd the facts when they told presidcn,
Roosevelt that the brokerage firm of
Moore and sohley had among its as-
sets a majority of the stock of the
Tennessee Coal and Iron company,
and that the firm would fail and the
panic be accentuatod unless the stock
pledged as collateral for loana was
exchanged for bonds Of the United
States steel corporation II was not
true. the complaint stated, that Moore
and SchIey had an amount Of stock
even apnfoxmatlng q majority
Mr.. Joyce testified today that on
Sunday. November 3. 1907. the day
before Gary and Friek went to WASH
ington 20 see the president, he had
made an examination of Moore and
Sehleys hooks nt the direction Of Mr..
Morgan and found that firm had lh7.-
aa0 shares out Of the Tennessee CONF
nany's total outstanding stock ef
2aS 000 shares Of which only 5000
shares We're not tied np la collateral
pledged for loans. He said he had 80
reported to MI Morgan ~ the meet
ing Of financicrs held that night at
the Morgan III rary aud that Mr. Nor
gan had said
Those figures agree with what !
have been told
Judge Gnry followed Joyce on the
stand. but after teslifying briefly con-
corning the Organization and growth
Of the Illinois steel company. af
which he was "a director in The early
days of tho steel industry, he WAS cx-
euscd until tomorrow The cross-ex-
animation of James A. Farrell, prcsi.
dent Of the corporation. was complet
ed today
The custom Of dumping steel pro-
duets abroad during periods Of de-
prcssion in the domestic market was
one Of the subjects about which he
was questioned
Mr. Farrell testified on direct eS-
amination that previous to the organ
liza ton Of the corporation tho over
seas markets were used by American
steel companies "only for dumping
and that the steel corpor
alton had to live down this busi- |
ness before II could develop its ex-
lort trade"
he could recall but one company I
that engaged in the practice the car
acgie company, and in that case II
~ intermittent
In 1898, 0he-third OF tho steel rail
of the Carnegie company /
went to Canada, Mr.. Farrell testified.
More rails were exported hy the Car
negie company in 1902. the year after
Ihe acquisition by the corporation,
han in 1897, 1899, l9oO ana 1901, he
said