Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-04-05
GAGE AND THE STEEL TRUST.

GAGE AND THE STEEL TRUST.
Emperor of Finance ]. P. Morgan
mas sailed for Europe to lay plans for
a monopoly of the worlds commerce
and steel industries.
He left the supervision of the market
for his new fourteen hundred million
steel trust shares in charge of his sec
ord lieutenant, Secretary Gage, who.
while Morgan is gone, is to exert a gen
eral supervision over the money market
and if necessary use the funds of the
United States Treasury to prevent
things from tightening up and endanger-
ing the shares of the new steel COM
bine.
Gage acquitted himself of his COM
mission on Monday by fastening into
Wall street with the government mon
ey, though there really was no call for
it, the furry being insignificant. and
purchasing bonds, although forced to
pay a premium Of over thirteen per
cent. It is only the peoples money, so
Gage can afford to be liberal in pre-
venting aver the semblance of a panic
in the market for his chiefs $1,400,-
900, 900 of steel shares. For the people
have no recourse, and no voice, being
without a representative in Washing
ton these days.
The incident served to show how teal-
GUS Of his interests are Mr.. Morgan's
lieutenants in the United States gov
eminent. They have indicated that
they are willing to make almost any
sacrifice of the peoples money in order
to avert the least danger from the new
steel trust.
Even Wall street is said to have been
astonished at Cages action in buying
bonds. It was taken in the very face
of an interview from that official only
the day before declaring that he would
not buy bonds at the present high
premium. That was on Sunday, and on
Monday Gage was buying bonds and
paying 1875 for them! Why did Gage
thus stultify himself? The reason is
thus given:
About two weeks ago James Stillman,
of the Standard Oil Bank, John d. Rookie
Teller and ]. Pierpont Morgan met at
Jekyll Island and discussed the financial
situation. Mr.. Morgan said he felt rather
~apprehensive at the outlook. He said
that the time was approaching when the
country banks would require all their
funds
They would, therefore, be compelled to
withdraw them from New York and at
the present state of the bank reserves and
the situation In the foreign exchange mar
ket, some stringency in the money market
was likely to result. Mr.. Morgan told Mr..
Stillman and Mr.. Rockefeller that the only
relief be saw would be in the purchase of
bonds by the treasury.
Thereupon Morgan notified Gage, who
fastened to come to time as shown.
He did so really before the govern
ment's aid was needed and paid a big
premium, which he said only the day
before he did not deem a~dvisable-but
that, of course, was before King Nor
gan spoke.
1t is an edifying spectacle for the
American people. Mr.. Morgan has not
only brought the Treasury Department
to the support of his fourteen hundred
million dollar steel trust, but has haA
Mr.. Mckinley offer the Attorney Gen
eralship to P. G. Knox, one of Morgan's
lawyers. Moreover, James H. Reed, the
law partner of Mr.. Knox, Mr.. Morgan
has already placed in the directory of
the United States Steel Corporation.
Mr.. Reed will look out for the legal
interests of the trust within the cor
poration, and his former law partner
as attorney general is expected to in
sure that the antitrust laws will not
DE enforced against the combine. Thus
is a sort of partnership formed between
the Department of Justice at Washing
ton and the law department of Mr.. Nor
gan's ST. 400, 000, 900 steel trust.
1t is Of the n~eatest, closest little
partnerships that could be imagined,
1t is highly interesting u the people
whose government is thus involved,
The people, however, are on the out
side. They, as usual, simply hold the
bag.