The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-03-11
Steel Magnate Changes His
Testimony About Ore, on
Cross examination
HIS RECOLLECTIONS
ARE RATHER HAY
Does Not Remember Anything
Regarding 100000 Rebate
on Tonnage Hauled Over
Duluth Railroad

NEW YORK. March 1o.--Ex-Sec-
rotary of War Jacob II Dickinson,
attorney for the government in Its
suit for the dissolution of the United
States Steel corporation. in the ex-
animation being conducted in the
Empire building, continued his efforts
today 10 extract from James Gayley,
former vlce-president Of the corpor-
alton. admissions that it had con-
trolled practically all of the ayaila-
bile iron ORE of tho country, and had
rebating contracts with its principal
rival in the Mesaba district the
Federal Steel company. which own
ed the Duluth and Iron Range rail-
road.
In this he was partially successful
An attempt WAS made by c. a. Sew
erance, If counsel for the steel In
terests, To have Mr., Gayley's exami-
nation concluded today, but the gov
eminent attorney demurred He ex-
poets to finish with Mr.. Gayley to-
morrow afternoon, after which
there witt be cessation IN tho hear
ing for q few weeks,
Recollection r. BAD.
In his answers TO Mr.. Severance. the
former ere man OF the steel corpor-
alton. had Indicated that ere In plen-
~ was 10 , had In New York State.
IN Utah In California. Texas Cuba
and elsewhere. but In Judge Dick
insans hands. nc testified that very
little. or none Of IT had been ntii-
Ized
lis recollection was rather hay
Ia regard 80 tire proceedings read 10
him from The minutes IF the Airec-
'ysra,e f9s@et4ne eft}1s-.. Carnegie Steel
company connecting him with the re
late amounting 20 S2eo geo on the
TONNAGE If the previous year hauled
by the Duluth and Iron Range rail
rpad Witness declared he had no
recollection IF the matter,
Before the Take Over
Mr. GfaTley testified that in 1905
a YEAR before taking over the Ten
nes4ee Coal and Iron company by the
Steel corporation during the panic of
1897. he had suggested to Henry G.
Prick that the property ought to be
secured. Mr.. Frick had not thought
well of The purchase ri that time
AS 70 the Hill ore leases. Mr. Gayley
thong ht-~that they were toe high, not
wifhstandirE she fact that the cor
porstt0n . need OF orr reserves was 50
Rreat that they could afford ~ over
Hin ore deposits had afterwsrd proved
TO contain about one hundred million
tons more than had been estimated.
sehwah ignored Morgan.
II Was brought cut that the f'aruegje
company had been favorIng the cree
ton ~ tube works in Ohio In 1900.
but that in the fall Of that year the
project was dropped, Charles NJ,
Schwah had reported 70 the directors
rueeting according to thu minutes read
70 Mr.. GaFIey that he had been In New
York In November Of that year, and
had been sent for by J. T. Morgan. lie
ignored the summons, he said. because
he thought the subject Of railroads
would come up.
He learned afterward from Mr..
Steele, Mr. Mprwau's assistant. that
the Morgan people feared that the
Carnegie company was going into the
tube business. which they them =
selves were taking UP. 1t was after
this Mr.. Dickinson attempted 10
establish that the Carnegie company
withdrew from the undertaking.
The hearing win continue tomorrow