The times. [volume] (Richmond, Va.) 1890-1903, 1900-04-21
THE Way THE CASE SHOULD BE
TREATED.

The American Steel and Wire Company
is one of those immense corporations that
the public associates in its mind with the
word Trust. 1t has immense capitaliza-
ton, many immense factories, and its
product of finished steel and iron is some
thing almost appalling to the Imagination.
II mas been making splendid dividends for
its stockholders ever since it was formed.
and ten days ago the whole public thought
it had career Before it Of uninterrupted
prosperity. A man named John W. Gates
is the chairman of its board of directors.
dent of the company-anofher man is its
president, but under the rules and by
laws of the company the chairman OF the
board of directors is the real head and ex-
ecutive officer of the company. About a
month ago Mr.. Gates put out a statement
in better shape and condition, that they
were overrun with work and that all OF
its contracts were taken upon the basis of
excellent profits, and that its foreign BUSH
ness was growing in an especially graft
flying way Its stock was already high
and this statement of Mr.. Gates increased
popular confidence in it immensely, SO
that one desiring to sell its stock had no
difficulty IN finding purchasers. Within
the past ten days the officers of brokers
and bankers in New York, as is alleged
by all of the New York newspaper. found
dumped upon them great quantities of the
stock of This company, standing in the
name of John w. Gates with blank powers
of attorney upon them, signed by the said
John w. Gates, showing that they had
been sold by him. Within a day or two
after he had disposed of his stock at the
high figures to which he had buoyed it.
there came out another statement from
this said John W. Gates, which was in
substance a statement that the American
Steel and Wire Company was in a very
bad way. He said practically that its
whole business now was in filling contracts
taken in the year 1889, that there was
practically no new demand for the COM
pany's goods and that it was not doing
80 per cent. of the business that it had a
right to expect.
This statement caused an Immediate
panic in the immense volume of this COM
pany's stock. Prices for 1t fell down,
down, down, under pressure from all
quarters to sell. The losses entailed upon
the public were immense, and though we
have heard of no absolute wrecks. it is
impossible that in such a widespread
panic overwhelming disaster did not come
to some. But the influence of this evil
deed was not confined to those who were
concerned with the stock of the American
Steel and Wire Company. The vicious
act infected the whole stock market and
all business IN all parts of the country.
In the iron and steel business, particular
~, its pernicious influence was most Sc
yereiy felt. Every such business that is
prospecting necessarily owes money at the
banks and this alarming statement natu-
rally aroused distrust in all the banks in
respect to the business OF their customers
engaged in the iron and steel business.
It would hardly be an eXaggeration to say
that there is not concern in the United
States engaged in the iron and steel bust
ness that was not affected in a damaging
way by this nefarious act This resume of
the case might be thought to be little
colored IL ii were not that every newspa-
per in New York City has practically
stated as facts every allegation made
here. based upon the universal action OF
all conservative business men IN New
York City, and even the Journal of Com
merce, the most staid and conservative
paper on this continent, pronounces the
act of Mr.. Gates the most infamous that
has ever occurred in Wall Street since the
worst days of Fisk and Gould. the pre-
sumption being that Gates bought his
stock back in the panic.
But why have we been at the trouble OF
making this resume of this case2 It is in
the effort TO direct public attention to
what is the true point of attack in the
matter of Trusts. The American Steel and