The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-14

is QUESTIONED
Government Doubts Kindly
Motives of United States
Steel Corporation.
BIG MERGER IS DISCUSSED
Gary Insists Right Thing Was
Done in Taking Over Ten
ncssec Properties.
BIG MERGER is DISCUSSED

New York. juno 1S.-"If the United
States Steel Corporation paid s35. 900. 900
for the Tennessee Coal and Iron Com
pany and sl4.oo0.ooO moro to put IL
on It's feet. not because It wanted the
property, but to save che firm of Moore
o. Schley and other banking concerns
holding Tennessee Coal and Iron stock
from ruin In the panic Of 1907. wouldn't
IL have been better for the corporation
to loan Moore Schley 10000 600 or
$4,000 600, or give IL To them out
right?"
This. in substance was the question
Jacob NJ. Dickinson. attorney for the
government dissolution suit against
tho corporation. asked It's chairman.
Judge Ebert H. Gary. today.
Judge Gary had testified that the
money spent in the company's acquisi-
tion and rehabilitation could have
brought far greater profits IL nut into
other plants.
Il will say No" was Judge Gary's
answer. Il believe we did the best and
most prudent thing under the circun-
stances.
Gnry Is snrpriscd.
Judge Cary expressed surprise when
the government put into evidence arti-
Giles published in steel trade journals
az late a. September. 1905. reporting
meetings OF various steel associations.
1t which IL was stated that prices svere
III was voted TO Investigate members
charged with price cutting.
Judge Gary said he never had read
the articles referred 10.
II am surprised 10 learn he said.
that such meetings were held ~ late
rs that am surprised the govern
incnt didn't take notice OF them"
well. IL takes the government q
long time to get started. but, Ike the
mills of the gods. when they do grind.
they g/nd exceedingly me" remark
cd Judge Dickinson
And sometimes both the just ano
the unjust" replied tn. witness.
Turning 10 the question Of the wire
pools. whose members were indicted
and fined IN 1911. Judge Dickinson
called the attention OF the witness 70
his testimony that In 1901. he hao
given an order 10 the corporation !.
subsidiaries TO Withdraw from ali
pools and had not discovered the par
iicipation Of tn" American steel ano
Wire Company IN the wire pool until
1905 through an outsider"
What steps did YOU take TO inform
yourself that your orders had been
carried QUIZ
''Sone. hadn't been looking for
burglars In my house. and had no
reason TO suppose that any were
there" replied the chairman.
Il assumed that our general solicit
tor oii.c" had disposed OF the ~holc
matter
What disciplinary steps did you
take when you learned four years
later that your orders had been vio-
lated Did you discharGe any body?
NO l used emphatic language. bu,
was thoroughly satisfied that the
thing would never occur again. I did
not want tc deprive men whose fam
HES depended upon them Of their sup
port. They were fined b. the court
and disgraccd"
Admits Making statement.
The Federal attorne+ put into evi-
doncc a statement attributed TO Judge
Gary published after meeting OF
steel manufacturers in 1911. IN this
the witness MAS reported as saying
tina, the subsidiaries of tho corpora
ton proposed 10 meet the prise r"duc-
lions OF the Republic iron and Steel
Company and that ~ Is believed
their prices will hc generally fol-
lowed" Thc prices in question were
quoted
The witness said that hc had made
tho statement hut that some one
clse inserted thu prices"
no one" II" aided. was under tho
least obligation to follow these
prices"
Robert Racon. former ambassador
10 France. and n former partner OF
L. r. Morgan & Co. is expected TO tes-
tify Tomorrow