The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-04-20
GATES MAY LOSE HIS JOB
FRICK MAY MANAGE AMERICAN
WIRE AND STEEL TRUST.
Possible Consolidation of the Concern
with the Carnegie steel Company
Hewitt Denounces Gates.

morrow will say: "Wall street Is full OF
rumors to the effect that John w Gates
Is to be deposed as the executive head OF
the American Steel and Wire Company.
These stories, which have been in circula-
ton for some time, assumed tangible form
yesterday when it was said that sydicate
headed by Andrew Carnegie. Henry c.
F'rick and the Seligman interests and the
Moore Bros. had obtained control of the
company and will put Mr.. Frick in Mr..
Gates's place"
The Tribune tomorrow will say: "a re-
port which found many believers yesterday
afternoon was that Mr.. Gates would be re-
quested by the directors to-day to resign
the craftsmanship of the board and that
Harry c.. Frick would be elected to sue
ceed him; and that 1t was added that
President Lambert. of the Steel and Wire
Company, who left Chicago for this city
on Wednesday night. had tarried at Pitts
burg few hours on his journey for the
purpose of comforting with Mr.. Frick re-
garding this rumored move.
Ex-Mayor Abram S. Hewitt said Of the
American Steel and Wire Company's action
in shutting down a dozen of its mills as
quoted: until Mr.. Gates made his state
ment and the American Steel and Wire
Company shut down twelve of its mills We
had no indication that the condition of the
trade was not satisfactory. / do not know
anything about the business of the Ameri-
can Steel and Wire Company. They are
competitors of ours, and we have always
found them upright and honorable people
to do business with. do not wish to make
any attack upon them. but as far as 1
know there is no justification for Mr..
Gates's statement. The demand for pig
iron continues good and as 1 say, in our
business we have discerned no indications
of the conditions suggested by Mr.. Gates.
AS to the other aspect of the matter-that
a great corporation should, without notice,
shut down twelve of its mills and throw
out Of employment 5000 or 10000 men is
simply outrageous. Such an action is un-
precedented in the trade. Manufacturers
when they see falling off in demand,
divide up their work and limit production
gradually. They even operate their works
at loss. Our glue business has been run
ming seventy-five years and has never been
shut down. 1 have seen three years product
piled up because there was no demand for
it. but the workmen were employed and got
ness for five years. from 1893 to 1898 at a
loss. That takes capital. of course; it also
requires conscience. AS for the American
Steel and Wire Company I don't know
what 1t was that led them TO such action.
Perhaps they lacked capital; perhaps they
lacked conscience"
Spurred by the reports of an alliance
between the Federal Steel and Steel and
Wire arrangements, President f. II. Gary,
of the former, to-day issued a statement.
in which he said: 81 have never suggested
to any director or to anyone the advisable
ity of shutting down any of the mills of
the constituent companies of the Federal
Steel Company. A sufficient tonnage has
been booked to keep our mills running full
for five or six months from the present
time"
Whether or not the action of the wire
company will interfere with the iron and
steel business generally do not undertake
to predict. The wire company has been a
purchaser of steel billets and steel rods
from some of our companies and at the
present time has contracts for about 5000
or $1,000 tons not yet delivered. If deliv-
cries on these contracts shall be postponed
1t will to some extent interfere with the
running of the rod mill of the Illinois
Steel Company at Joliet but that Is COM
paratively small part of our business.
From the statements which have been
published concerning the business of the
| wire company Ii seems TO me the trouble
| arises from the fact that the wire COM
pany is carrying large finished product.
which ordinarily at this season of the year
| is the possession of jobbers. Possibly the
condition arises from the fact that the job
bers have believed prices were rather high.
| While 1 do not undertake to express an
| opinion as to the future, have seen MOTH
ing in our lines of business up to the pres
| ent time that is at all discouraging Our
| business and earnings for the year up TO
| the present time have been satisfactory
| and much better than our previous expec-
| tations. 1 doubt If the managers of the
| iron and steel industries generally coincide
| with the pessimistic expressions which are
| said TO have emanated from the wire COM
pany. The question OF cutting prices has
| not even been considered by any officials
| of the Federal Steel Company or its con-
| stituent companies