The Washington herald., 1913-03-01
TELLS Of fight
FORIRON Mines
James Gayley, Former Vice
President Of Steel Corpora
tion Gives Testimony.
WHERE OIL BEAT STEEL
Rockefeller Interests Got Upper Hand
in Mesaba Range Contro-
versy, He Says.

New York, Feb. 2S.-The struggle of the
Rockefeller oil interests and the Carnegie
Steel Company prior to 1901 to obtain
control Of the iron mines of the Mesaba
range, on Lake Superior-the richest In
the country-was related to-day by
James Gayley. former vice president of
the United States Steel Corporation, in
the hearing in the governments suit to
dissolve the Steel Trust.
Reluctantly, Mr.. Gayley admitted that
the Carnegie Steel Company and the
Rockefellers entered into an agreement
by which the former was 10 allow the
Standard Oil to maintain its grip on the
Mesaba mining property. the Carnegie
company to be supplied with ore by the
Rockefellers as needed.
Mr.. Gayley. although supposed to be
resentful over being ousted from the
steel directorate by the Gary regime, re-
Trained from giving any evidence as to
agreements, or anything else, that would
harm the Steel Corporation, except what
could be dragged from him. In expla-
nation of this attitude. Jacob NJ. Dickin-
son. the governments counsel, drew
heavily interested in the Steel Trust as
a stockholder.
Conferred with Rockefcllers.
The former Steel Trust official told of
conferences between himself. as the rep
resentative of the Carnegie Steel Com
pany, and John ID. Rockefeller jr., and
the Rev. Frederick T. Gates. of the
Rockefeller forces, over a break In their
agreement as to acquisition of iron prop
critics. The Carnegie company, through
Henry w. Oliver, of the Oliver Iron
Mines Company, although bound by its
understanding with the Rockefellers. Sc
cretly bought in mining property with
100000 tonnage. When the Rockefel-
lers learned of it. they compelled the
Carnegie company to give up all but l5,-
Co0.Ooo of tonnage of the acquired mines.
The governments attorneys consider
the recital of this mining agreement of
vital Importance in fastening upon the
Carnegie Steel Company, as well as the
Standard OIL officials. some of whom arc
co-defendants the charge of violation OF
the Sherman antitrust law.
In prodding Mr. Gayley for details Of
the agreement between the Carnegie
Company and the Rockefellers. Mr. Dick
inson dug up from minutes of the Car
negie Company letter from Gayley to
the directors. saying:
Sheds Light on ..BIufr.
1T is difficult to play a game of blufr
when the other party holds the cards.
and you know IT"
You wrote that asked the attorney.
Yes grinned Mr.. Gayley. but We
only gave back 6o.0Oo,pOo tons. and later
OF got vastly more than the difference
on the new lease"
The governments attorney was in
quisitive to know II any rebate agree
ment on cartage charges over Rookie
feller roads in the Mesaba range existed
but he declared he knew of none
The only agreement was that il the
rails went down, the difference would
be added to the royalty we received on
the nlines,' explained Gayley.
After the new lease agreement was
made, Gayley said, the Carnegie Com
pany made no further efforts to buy
mines in the Mcsaba range. Later when
the Steel Corporation was formed, vas;
ore fields in the range were taken over