The Montgomery advertiser., 1904-12-29


 nish Ammunition for MidvaIe People. Pittsburg Special to New York Times. Reports leaking out in Pittsburg within the last ten days and develop ments of the last twenty-four hours point to trouble in the armor plate business within the next three weeks. The Naval Board at Washington will open bids on January 12 for armor plate for the battleship New Hamp- shire and cruisers. aggregating in all about 5000 tons of armor. which at the present price of plate would cost something like $3.340,00o.
 The Midvale Steel Company, an in- dependent concern of Philadelphia. which some time ago created comment by underbidding the Carnegie and Bethlehem Steel Companies for A biz armorplate contract and getting it, is known to have made a bid on this new work. and at a rate which rumor says IS extremely low and interesting. The Bethlehem and Carnegie Companies which until the entry of the Midvale into the field of competition had had things their own way. are prepared to light the Midvale tooth and nail A horizontal cut at least Is expected in the price of plate A representa-. | tive of the Midvale concern in Pitts burg yesterday announced that his firm was ready to make real figures on armor plate, and would do so in the case of the New Hampshire. It Is openly announced here that some cold. hard facts will be run into if it comes to clash between the two sides on | armor plate.
 1hose In Pittsburg who have watch. ed the armor plate industry grow seen, Of the opinion that 1t can stand A lot of airing. and that is just what ia promised al Washington by both sides For years the prices have been higher than many persons thought the cost justified.
 Details of fight made by the Ilii- nois Steel Company for a share of the | armor plate contract have just come to light. and, 1t is said will be used by the Midvale concern. If called on 10 make statement the Illinois Steel Company will have to repudiate claims made before Congress that armor plate can he made proftably for s24O per ton. and will also have to show that the contest was started at that time 10 injure Andrew Carnegie because of q war arising from the dissolution of the rail pool. and because John Gates President of the Illinois Steel Com pany. In 1896 beat the Carnegie Steel Company on a million dollar pig iron deal.
 The story Is as follows: Early in 1886 the steel rail pool. which was holding standard rails at s24 per ton. dissolved. John c. A. Leishman, then President of the Carnegie Steel Com pany, became very friendly with John Gates. who was the head of the nli- nois Steel Company. Leishman and Gates entered into an agreement whereby they would form a pool and hold the price of rails west of Chi cago at $17 50 per ton.
 Gates, in the face of this alleged agreement, made hurried canvass of the Western Railroads and scooped in most of the tonnage west of Chicago. In addition to this. Gates talked Leish- man and his first assistant. W. P Palmer. now President of the Ameri- can Steel and Wire Company. into buying about 100000 tons of pig iron at high price. Pig iron immediate ly declined.
 Andrew Carnegie, in Europe then. was advised of the situation and rush. ed home. Palmer received a few days notice. Leishman few months. Palmer accepted a post with the Illi- nois Steel Company as assistant to the President. Leishman was fixed up
 
 erland as Minister
 John Gates was angry with Carnegie. and charged that the Carnegie Steel Company was overcharging the Uni ted States government in it's armor plate contracts. At that time the Carnegie Company and the Bethlehem Steel Company had split the contracts for armor at $550' per ton. The Rus sian government had given the Carne- ! erable tonnage about the same time. and this was delivered in Russia at a lower price than that for which the American armor plate was delivered on the Atlantic Coast.
 Through the information that Mir Palmer is alleged to have given Gates ! on the armor plate cost, the Illinois Steel Company made an offer to the l government to make all the armor linois Company had no plant, but of fered to build one If a contract for twenty years was awarded. l The offer of the Illinois Steel Com pany created a sensation in Congress committee was appointed to inves tigate the offer of the Illinois Com- pany. This committed visited the Chicago plants and reported that the ground covered by the plants of the 1 otSCi SOAipdHy was 100 small. and a suitable armor plant could not 1 be erected.
 Since then the situation has been en- l tirely changed. John Gates became one of the leading promoters of the United States Steel Corporation. He advised that the Carnegie Steel Com pany be brought into the combination at any price. He became a heavy stockholder and a director. | ia said inc MiduaIa call on w. P. Palmer. President of the American Steel and Wire Company. to testify how the Illinois Company pro l nnsnd tn make arnnnr nlate nt SaLn