The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-11-15
JOHN W. GATES TESTIFIED
GAVE AN INTERFERING ACCOUNT OF
EFFORT TO FORM 4 COMBINE
Which Would Include the Wire Con-
Germs All the Countries in the
Worl l-Schcnc Defeated.

! Washington, November l4.-In giving his
testimony before the Industrial commits
sion today Mr.. John W. Gates, managing
director of the American Steel and Wire
company, gave az interesting account OF
his effort to effect u connection OF all the
wire producing countries. including all
the European nations, He said he hal
visited Great Britain, France, Germany.
Belgium and other countries for this pur-
pcse Germany, he found 10 be the prin-
the possibility of increasing prises $40
a ton in case of the proposed amllgama-
ton but found the Germans had in view
an increase OF about so ton. Ihe
amalgamation failed because o. dis
agreement Of the production to be allowed
TO the United States. In Germany the enc
source of fear in manufacturing ceatsrs
was competition with the United atss
and boun,ies and subsidies were si'en ON
every hand to hold up the manuiactlr (
interests of that country. In GeEmany all
lines of this industry were syndieated
He had procured copies of The agreements
but he declined to produce hem ianAh-
ingly saying he had them stolen.
MIR Gates advocated subsidies to steam
ship lines and to national corporations oil
S., 0000 600 capitalization and over. he
would have the corporations pay literally
for such charters in the beginning ana
then have them pay sums annually LOT
the continuance of the franchise, ncreas-
ing the amount as The capitalization Ill =
creased until the annual fee should be no
less than a million dollars for company
capitalized at hundred million. - I'D
yocated government supervision OF all
such generations. He said the protective
tariff had had much TO do with building
up the iron and steel industry ard that
the continuance OF the policy was ueces-
sary to the future prosperity OF tue in
dustry. He said that hie consolidation
had been effected last January. NUM-
Der OF plants that could not be operated
had been shut down The company en-
ploys 1000 men and wages had been in
creased on an average of 40 per cent The
company did recognize trades unions. The
company owned all the barbed wire pat
ents and had monopoly in this respect.
The advance in wire products had Deen
only proportionatr TO the increase OF the
prices of raw material and OF wages aud
had been Tue to demand and supply and
not TO the combination. The trusts. he
said. controlled only about 10 per cent
of the iron and steel business of the
country. Mr.. Gates deprecates the high
price of iron and steel products, because CT
the high price of raw material. He said.
however, that the present prices would
continue for the next two or three years.
He said his company was exporting no
less than 700 tons of wire day. supply
ing England, for instance. with 60 per
cent of the wire products purchased there.
He admitted that the goods ~zere sold at
lower rates abroad than at home. but for
the present this was necessary TO hold
the outside trade.
Other witnesses of the day were Max
Pam. counsel for the American Steel and
Wire company; James C. Pearson, or
ganizer of the National Shear company,
and Frederick j Weiss, vice president Of
the last named company.