The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-03
TRUST PRODUCES
OPINION WRITTEN
BY SENATOR HOAR
Continued From First Page.)

DI 0ENAIUR HUAk
Continued From First Page.)
to sell their product for less than
stipulated sum. Both these being in
tended for their legitimate protection
and not accompanied with any stipu-
lation for unlawful, oppressive or
fraudulent methods. seem to be lawful
within the policy of the law ms it now
exists. and not to be in restraint of
trade, but in advancement thereof"
They all believed" said Judge Gary.
that Senator Hoar's opinion could be
relied upon"
Admits Part I'm Pools.
The witness admitted. when asked
to state his own connection with pools
that some years before the formation
of the corporation no had signed in
behalf of the Illinois Steel Company.
an agreemnt with Andrew Carnegie to
divide their rail business on so per
cent basis, an arrangement in which.
he said, other rail manufacturers later
partic ipatcd.
II didn't consider at the time that
the rail agreement was illegal" he
said. Everybody thought II was all
right. and so did lawyers. Later. |
reached the conclusion that public
sentiment. If not the law. was opposed
TO them. The opinions of the courts
changed. and | think the Supreme
Court has from time to time extended
the application OF the Sherman law"
Judge Gary said that about the latter
| part OF 1904 he had taken up the oucs-
/ tion of pools and agreements with the
! finance committee of the corporation
and that as II result subsidiaries
which were found on investigation TO
be participating In any such agree
mcnts. were ordered to abandon them
| The witness said he had been surprised
| TO find that our subsidiaries partici-
patcd In any of these agreements az
| late they did"
| He denied he ever had attended Ger
tain meetings OF plate and structural
pools as testified by William f. Corey.
former president OF the corporation.
Praises j. T.. Morgan.
! Judge Gary took occasion to pay n
man who stopped the panic of 1907
He said:
He was the one and only man In
! this city or elsewhere who could and
did stop the panic by means OF his
wealth. strength and influence with the
bankers and the confidence they had
! in him.
He rose TO that occasion probably
as no man Will ever do again. ! can't
adequately express what he did.or what
/ the situation was AT that time.
/ In defending his company from the
attack by which the Federal govern
ment seeks To have IL dissolved as a
monopoly In restraint OF trade. he said
/ that tse independents had In some
cases, enough ore to last 100 years.
poration served the independents as a
/ common carrier.
Employs Orc Experts.
Judge Gary said the corporation
! from it's formation employed experts in
! ores and II was on their recommends
I lint nra
You heard OF holdings OF indepen-
dent companies" he was asked.
Yes AS time went on we heard
more and more about dependent hold
ings. There were number OF pri-
vate holdings, as well as the Cambria
Steel. the Pennsylvania, Bethlehem
Steel. Republic Iron and Steel, Jones
and Laughlin.'
The Steel Corporation at this time
has but forty years supply Of ore. the
witness testified.
Just think" he exclaimed. only
forty years supply. and the Pennsyl-
vanta Steel CONT any has enough to
last them 500 or COO years and the
Bethlehem has several hundred millions
of tons"
1t was the fact that its competitors
were acquiring large supplies of ore
much more rapidly than the corpora :
ton that led the corporation, he said
to negotiate the Hin ore lease In 1907.
Inc lc1S: WAS Cancctcu IN WI, De
cause. he explained. we found by prac-
tice that the cost 10 us OF concentrate
ing and utilizing these ores was larger
than we expected and we were 10 some
extent Influenced by the fact that
In the report OF the commissioner OF
corporations, it was claimed that our
ore reserves were so large as TO be
Objectionable TO the government. and
tended TO secure and maintain = mon
opoly In iron and steel"
Judge Gary denied that monopoly
was the original object OF the Hill
lease.
Defends Purchusc.
Mr.. Gary defended at length the ac-
QUESTION of the Tennessee Coal and
Iron Company, which the corporation
maintains was taken over To stop the
panic of 1907, and not to eliminate tbs
competition of rival. as charged by
the government. The witness describ-
! ed the Tennessee Coal and Iron Com
pany as a company whose stock was
placed on the market for speculat tive
purposes. The Steel Corporation hs
added. had to pay 100000 OF the
concerns s22.000.00O 10 put the prop
critics in condition.
Judge Gary explained that while the
corporation owned railroad in MIN
nesota 1t had been operated as a com
mon carrier for the benefit of the
public.
This railroad" he said. els a neces
sity to the iron and steel industry tt
get our ore to the lakes
Our railroad companies have served
the independents fully as well as they
have served the interests OF the United
|