Bisbee daily review., 1908-05-08
WHAT INTERESTED GARY
IN STEEL BUSINESS
Chairman of y S, Steel Cor
poration Urged the Combi-
nation of Small interests.

Ebert H Gary, chairman of the
board OF directors of the United
states Steel corporation and presi.
Gent OF the newly organized Ameri-
can Iron and Steel institute, was born
IN Da Page county. Illinois, about 62
years ago. After attending the com
mon schools and Wheaton college and
teaching two winters in the country,
ne became law student and in 1867
Was graduated from the law depart
ment of Chicago University. He ac-
oepted position with the clerk of
the courts in Cook county at $12 per
week, and. at the end of three years
and a half, was earning s45 a week.
He then began the practice of law.
he served a term as mayor of the
village of Wheaton, where he lived
while practicing law in Chicago, ana
Tor two terms was judge of me coun-
ty court. The story of how the
practice of law resulted in his becon-
ing interested In the steel business
has been told by Judge Gary as fol
lows:
4 became attorney for a number
OF corporations; a wire company
among the rest. In To-, we thought
n would be advantageous to put sew
NE6 lnID one. Inc
work was turned over to me. We
organized the Consolidated Steel and
Wire company of Illinois, with a cap
ftai of S4,u00.000. II was an enor.
mons enterprise in it's day. | bought
stock. got interested in the manage
ment, and was elected to the board
of directors. Seven years later, we
took in more mills, increased the
capital of S12,000.0 900 and were incor.
porated as the American Steel and
Wire company.
In the meantime | had purchased
some OF the shares of the Illinois
Steel company and had been chosen
director. There was a suggestion
that the company ought TO buy a rail.
road which connected several of our
plants l opposed making two bites
of one cherry, and urged a wider and
more logical combination, saying that
1 favored a consolidation which
should include the Illinois Steel com.
pany, the Minnesota Iron company
which owned mines, the Lorain Steel
company, whose works were on Lake
Erie in Ohio, the Minnesota Steam.
ship company, which would supply
our water transportation; the Duluth
and Iron Range railroad, which would
take our ore TO the lake: the Elgin,
joliet and Eastern railway, and the
Mt Pleasant Coal and Coke company
of Pennsylvania. My theory was to
combine all the units of manufacture
and transportation into a single own
ership and management.
The different interests met IN
New York and came 20 an agreement.
A committee was appointed to carry
ont the arrangement and tC fix prices.
Senator Spooner and former Cover.
nor Flower were put on the commit
tee but did not serve. Robert Bacon.
now assistant secretary of state and
then a partner of ]. Pierpont Nor
gan, and myself, were the remaining
members of the committee and the
labor fell to us. We called the cor,
poration the Federal Steel company,
and made our capital S200,000,0UO, a
figure which fairly amazed the world
of business here and abroad. MI
Morgan has said that the Federal
Steel company seemed to be a more
.stupendous enterprise than did the
United States Steel corporation, cap
italized at $l,400, 100000, which fol
lowed three years later.
While the Federal company was
being formed Mr.. Morgan sent foI
Gary, told him he had been decided
upon for president and persuaded
him to sign a contract for three
years. Judge Gary had lucrative
law practice in Chicago and was very
sorry TO leave his friends in thai
city. He expected to return to Chi
cago, but when the United States
Steel corporation was formed, he be
came an important factor in it, and
located permanently in New Yorh
city. HIS official record, in connec
ton wICh the corporation and his ef
forts toward promoting cooperation
and conciliation among iron and stee
manufacturers are familiar to oul
readers.-The Iron Trade Review.