The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-05-28
John w. Gates Talks About Millions
as Though He Were Discussing
Price of Postage
Stamps
900 THE ENTERING WEDGE
Committee Believes It Has Made a
Good Start Toward Proving
Corporation is an
Octopus.

[Gate City Leased Wire Service.1
WASHINGTON. Nav After
hearing four hours of the inside
history of steel from Bet a Million
Gates, the Stanley steel trust :nves-
tiSating committee tonight was jub-
liant over the start it had made on
its probe of the big industrial com
bine. With John W. Gates testimony
to work on the committee is con
vinced that it will have no trouble in
evolving the facts concerning the
great aggregation of capital
Opponents of the steel trust tonight
declared that Gates testimony form
ed prima facia case against the
steel trust, on which the investigators
can build the groundwork Of a strong
report. They declare that Gates
declaration that the combination was
formed for fear the competition OF
Carnegie would demoralize the rail-
road industry. as it had the steel
trade proves that the combine was
organized to prevent competition,
and In restraint of trade
Leaning back in his chair careless
ly, flicking the ashes from a long
black cigar, Gates discoursed casually
OF hundreds of millions, while he told
| the committee how president of the
/ United States had been "duped" and
4 the steel industry of the country con-
4 solidated. Gates seemed to enjoy his
four hour session with the committee
4 chl1nl lin fran,,nnt1, a. 1,n tnII ,f "a
4 dealings in high finance.
Chairman Stanley wanted to know
| whether the Morgan pool that engi-
neered the absorption of the Ten
nessee Coal & Iron Co., by the trust
! had lost any money. Well. drawl-
/ ed Gates. with a sarcastic smile, give
never heard of Mr.. Morgan making an
assignment, have you?''
That was the only time he referred
to any OF emperors of finance, as
"Mr." throughout his testimony it was
Andy Morgan Me and Charlie
4 Schwab,' and Gary The bluff.
frank figure in the gray summer suit
seemed to have absolutely no rever-
ence for men of millions. He talked
about the $500, 100000 paid Andrew
Carnegie for his sixty per cent share
in the Carnegie Steel Company, in a
casual way, as newsboy would dis
cuss a days harvest of pennies.
"Where'd you get that dope?" he ask
ed Stanley with smile. when the lat
ter tried to outline what the trust had
paid Cat for the American Steel &
!. Wire Company That's way low"
Well. what did you get?'' demand
ed Stanley
I'm ashamed to tell You, laughed
Gates, waving his hand.
He was finally prevailed on TO tell
that he got s46S00,0O0 in Steel pre-
J ferred and from fifty TO seventy mil
) lion in Steel common for the forty
millions of American Steel & Wire
stock
, Gates declared that along in the
nineties, Carnegie w-s threatening to
: invade the railroad. 1t was thought
, that he had already demoralized the
steel trade, and Morgan was afraid
he'd demoralize the railroad bust
ness"
Morgan called in jim tIill,' said
. Gates, and Jim. who was a pretty
good friend of mine, told Morgan TO
come to me. Morgan and were not
i on very good terms and he asked Hill
TO invite me to conference | went
and Morgan asked me how Carnegie
could be gotten rid of. | said that
Charlie Schwab was the man to dc
, it,
Gates told of summoning Schwat
to New York and of an all-night con
a ference when he, Schwab and Morgan
: evolved the idea of the United States
Steel Corporation and secured
. Schwabs assurance that Carnegie
4 would sell his plant
Me and Charlie staid at Morgan.
until about six O'Clock in the morn
ing related Gates. Cross examined
about Carnegies decentralization o
the steel trade" Gates said.
It Well. in those days we had gen
= tlemen's agreements, and sometime
It after We had arranged them, And.
s would come around, and kick 'em al
l. over The trouble was nobody in tb
d Carnegie company controlled Carnegi
IS but Carnegie controlled everybody Il
e the company Gates recommends
a that the committee get Morgan dow