The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-11-15
AN IN International TRUST
Worlds Wire and Steel Industry
in One Gigantic Combine.
GERMANY A COMPETITOR
Subsidies Given on Every Hand to Pro-
tect the Business in That Country.
President Gates Testimony Be-
fore Industrial Commission.

Washington, Nov. 14.-In giving his
testimony before the industrial COM
mission to-day John w. Gates, man
aging director of the American Steel
and Wire company, gave an interesting
account of his effort to effect con-
solidation of all the wire producing
countries. including the European ma
tons. He said he had visited Great
Britain, France, Germany, Belgium and
other countries for this purpose. Ger
many he found to be the principal
competitor, England's work in that re-
spect not being sufficient to deserve
serious consideration. In Germany the
one source of fear in manufacturing
centers was competition with the Unit
ed States, and bounties and subsidies
were given on every hand to protect
the interests of that country.
He had run away from Berlin to
avoid accepting this allowance. He had
himself represented the possibility Of
increasing prices to the extent of
about $40 per ton in case of the pro-
posed amalgamation, but found that
the Germans had in view an increase
of about $40 per ton. In this connec-
ton Mr. Gates commended in high
terms the German methods of 'encour-
aging the producing and exporting in
| States government would adopt the
| plan there pursued they soon would be
| doing 80 per cent. of the iron and steel
| business of the world. He advocated
subsidies ITO steamship lines and to
| national corporations of 100000 cap
italization and over. He would have
| the corporations pay literally for such
charters in the beginning and then
| have them pay large sums annually for
| the continuance of the franchise in
| creasing the amount as the capitaliza-
! ton increased until the annual fee
should be no less than a million dol
lars for a company capitalized at $780,
100000 He advocated government SUI
pervision of all such corporations.
He said the protective tariff had
much to do with building up the iron
and steel industry and that the con-
| tinuance of the policy was necessary
to the future prosperity of the indus
been effected last January. A mum.
Der of plants that could not be oper-
ated had been shut down. The com
pany employs $4,000 men and wages
had been increased on an average OF
40 per cent. The company did not, he
said, recognize the trades unions, deal
ing with it's men as individuals, and
would not recognize the unions. He
said the company controlled all the
| barbed wire patents and had a monup-
oily in this respect. On this product
higher charge was made than or
other products because of the monop.
oily of patents. This was because OF
the money spent in their acquisition
Generally speaking, the advance in
wire products had been only proper.
ticnate to the increase in the price OF
raw material and of wages.
He considered that all these advances
had been due to the demand and sup
ply and not to the combination. In
deed. he asserted that the American
company did not seek monopoly OF
the production of the unpatented arti-
cles or seek to control the selling price
of its patrons. On the contrary, the
disposition was to encourage other or.
CARNATIONS. 1t was not true. as peo
pie seemed to believe, that the trusts
controlled the iron and steel business
OF the country AS matter of fac
they only controlled about 40 per cent
Of it.
Mr.. Gates deprecated the presen
high prices of iron and steel products