New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-05-16
WHY GATES GAVE UP PLAN
STORY THAT HE WAS DISFLEASED
WITH HIS TREATMENT BY MR.. NOR
GAN, AND DETERMINED TO
FIGHT STEEL TRUST.
FIGHT STEEL TRUST.

There was a report Yesterday that John W.
Gates. Colonel Isaac L. Elwood John A Drake
l. l.. Smith, John Lambert and others known
in Wall Street as the Chicago crowd" were or
ganizing a S2uOO00O0O steel trust to oppose the
United States Steel Corporation recently or
ganized by J. T. Morgan & Co The report said
that Colorado Fuel and Iron. the Tennessee Coal
and Iron Company. the Republic Steel Company.
the Pennsylvania Steel Company and other COM
panies We're 10 be in the combination Mr.
Gates has recently been elected director of
and has taken active interest in the Colorado
Fuel and Iron Company. His advent in the
company signalized by a sharp advance in
the price OF the stock. and he and his friends
said 10 control the company Mr. Gates
sailed for Europe yesterday the St Louis
Just before going when asked about this re
port, he said: That is a highly imaginative
piece of work. and deserves to be preserved as
such. There is truth in it,
Mr.. Lambert issued statement also denying
the report. The intimation," he said. that we
seek TO fight the United States steeI Corpora
tion. is manifestly absurd. for the reason that
largely interested in that corporation
and intend 10 hold all our interests in it, The
only one OF the companies mentioned in the Chi
cago dispatches in which are interested is
Colorado Fuel and Iron. We are In that COM
pany to do business. and not TO fight United
States Steel nor TO sell out to It, The relations
between Colorado Fuel and United States Steel
are very harmonious and will so continue"
The following interesting story was told by
man connected with OF the companies
named: When the United States Steel Cor
poration formed John w. Gates and his
friends were dominant in the American Steel
and Wire Company. Mr.. Gates wanted to go
into the United States Steel Company, and so
intimated. One day J. Pierpont Morgan sent
for Mr.. Gates
'Ah Mr.. Gates said Mr.. Morgan, the men
who organizing the United States Steel Cor
poration have decided TO offer you and your
friends a price for your interest in the Ameri-
can Steel and Wire Company. You may accept
ii or reject ii, as you fit. 1t viii be impos-
sible for you TO enter the directory of the United
States Steel Corporation or take an active part
I'm the oapaPernent of tbat cop,ran,- ", 49,
made your own reputation. M. Gates:
not responsible for it. Good day, sir
This made Mr.. Gates exceedingly angry AS
the offer for his holdings was advantageous he
accepted it. and this gave him large amount
OF ready money. With this he and his friends
started out 10 get control of Colorado Fuel and
Iron, Tennessee Coal and Iron. Pennsylvania
Steel and Republic Steel. While carrying out
this plan for forming giant combination TO
fight the United States Steel Corporation the
disastrous Northern Pacific corner
gineered. Gates and his friends were badly
nipped in the panic. and had to abandon all
prospective plans to take OF immediate
necessities This panic over the market looked
so shaky and the outlook seemed uncertain
that II was decided TO abandon the plan for
forming new steel trust. Mr.: Gates cleaned
up every speculative account in Wall Street
closed out all his transactions and went TO Eu-
rope for = rest.
Arrangements have been made. according to
reports. with the Illinois Trust and Savings
Bank and Blair & Co by which the Colorado
Fuel and Iron Company will receive the sum of
So 100000 to be used to finish proposed i'm
provements The arrangements. il said.
lack only the formal consent Of the directors.
who meet on Nav % The company will proba-
bly issue convertible bonds for the amount.